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Deal or no deal for Paramount? Here are the options on the table

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Deal or no deal for Paramount? Here are the options on the table

Time is running out for Paramount Global and Skydance Media to reach a deal combining their entertainment empires within the 30-day exclusive negotiating window that closes Friday, and it appears likely that the week will pass without an agreement on a transaction.

Paramount, controlled by Shari Redstone , and Skydance, helmed by film producer David Ellison, have been trying to hammer out a complicated deal that would leave Ellison in control of the storied media giant. And so far, no agreement has been struck.

What has long looked like Paramount Global’s most viable buyout option has been the subject of weeks of palace intrigue, plagued by an investor rebellion and corporate shakeups. Paramount’s stock fell roughly 7% on Friday amid reports that the company was getting cold feet about Skydance’s offer.

New York-based research firm LightShed Partners said Friday that it expects the bargaining deadline to arrive sans agreement, with another bid from Sony Pictures Entertainment and Apollo Global Management on deck. The negotiation period is not likely to be extended, leaving the door open to other options.

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The Times has contacted Paramount Global for comment. A spokesperson for Paramount’s mergers and acquisitions committee declined to comment.

The Skydance scenario

Since reports surfaced in January that Ellison’s Skydance was exploring an all-cash deal to acquire National Amusements Inc. — the company that holds 77% of Paramount Global’s voting stock — things have gotten messy.

Over the past month, Paramount has been negotiating with Skydance, which has linked up with investment firms RedBird Capital and KKR to take over National Amusements, which would give it control of Paramount, owner of the Paramount Pictures movie studio on Melrose Avenue, broadcast network CBS and cable channels MTV and Nickelodeon.

The talks spurred a revolt led by Paramount Global investors who expressed concerns that the deal on the table would largely benefit Paramount’s nonexecutive chairwoman, Redstone, at the expense of regular shareholders.

The investor uprising caused Paramount shares to plummet and prompted several of the company’s directors to step down. In an effort to quell the backlash, Skydance recently upped its offer with a cash infusion for Paramount and by setting aside funds specifically for Paramount’s nonvoting shareholders, which would probably reduce Redstone’s take.

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All of this corporate turmoil culminated Monday in the termination of Paramount Global Chief Executive Bob Bakish, whose opposition to the Skydance deal did not sit well with Redstone.

Bakish preferred another Paramount Global suitor, private equity firm Apollo Global Management, which joined forces this week with Sony Pictures Entertainment to submit a $26-billion all-cash bid for the entertainment empire.

Sony-Apollo hover around the hoop

While this Paramount-Skydance saga has been unfolding, Apollo and Sony have officially entered the ring as a team.

Culver City-based Sony has offered to become a majority shareholder in the entertainment company, with Apollo as a minority owner.

Because Sony Corp. is based in Tokyo, Apollo would probably have to assume control of Paramount’s CBS network in order to abide by Federal Communications Commission rules that restrict foreign ownership of broadcast TV stations — a technicality that could make the offer less attractive to a company reluctant to divvy up its assets, according to analysts at LightShed.

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Such a deal, while cleaner from a financial perspective, would cause upheaval in Hollywood. It would probably result in mass layoffs, reducing the number of major movie studios from five to four.

What if none of the above?

After Bakish was ousted, Paramount Global appointed three of its top entertainment executives — Paramount Pictures CEO Brian Robbins, CBS CEO George Cheeks and Showtime/MTV Entertainment Studios head Chris McCarthy — to lead the company in an “office of the CEO” capacity.

If a Paramount-Skydance merger fails to pass, analysts at LightShed Partners predict Paramount will move forward with its leadership trifecta, focus on restructuring its business and eventually revisit mergers and acquisitions discourse later this year or in 2025. The regulatory landscape is expected to become clearer after the 2024 presidential election.

The LightShed analysts said they doubt that Paramount will immediately pivot to a Sony-Apollo deal in the event that talks with Skydance fall apart.

“We’re only four days in so there’s not a lot I can say,” Cheeks wrote in a memo to Paramount Global staff. “But … Brian, Chris and I are in the process of finalizing our strategic plan that we’re going to roll out as soon as possible.”

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Times staff writers Samantha Masunaga and Meg James contributed to this report.

Entertainment

After Amazon drops OpenAI movie ‘Artificial,’ film finds new home at Neon

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After Amazon drops OpenAI movie ‘Artificial,’ film finds new home at Neon

A Hollywood portrayal of OpenAI Chief Executive Sam Altman portrayed by actor Andrew Garfield will be released later this year, after Amazon MGM Studios dropped the movie.

“Artificial,” which chronicles Altman‘s 2023 ouster from OpenAI and his reinstatement as CEO, was acquired by Neon, the studio announced Tuesday.

“The acquisition underscores Neon’s commitment to partnering with visionary filmmakers, and bringing ambitious cinema to audiences around the world,” the studio said in a statement. “Artificial will compete in this year’s Oscar race.”

The film has a critical take on artificial intelligence, according to three sources briefed on it who declined to be named. That portrayal caused Amazon to want to distance itself from the film, given the company’s $50 billion investment in OpenAI, two of the sources said.

Amazon declined to comment on the claims. In a statement, the company said it has “the utmost respect and admiration” for the movie’s director Luca Guadagnino. “We believe that ‘Artificial’ will be better served if it were released by a different studio and are working closely with the filmmaking team to find the film a new home,” Amazon said.

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The deal was negotiated by Neon, CAA Media Finance and Amazon. CAA and Amazon declined to comment. A Neon spokesperson did not immediately respond to questions regarding the financial terms of the deal.

Puck News first reported Amazon dropping the movie.

Other studios, including Netflix, A24 and Focus Features, screened “Artificial.” Netflix and Focus passed on the film.

Amazon’s decision to drop the film comes at a time when Hollywood is grappling with the growth of artificial intelligence. Some creatives are concerned that the technology could displace jobs; others worry that their likenesses are being used to train AI models without their permission or compensation.

Meanwhile, many AI companies are eager to work with studios, saying their AI tools can help speed processes and reduce costs.

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To foster more nuanced discussions about artificial intelligence, Google is collaborating with talent management firm Range Media Partners to develop films that present a less dystopian view of the technology.

Amazon passing on the film raises questions about whether tech company-backed studios would be willing to release movies that are critical of innovations in which they have a stake. It could create a chilling effect, said Robert Thompson, director of Syracuse University’s Bleier Center for Television and Popular Culture.

“The chilling effect could not only be on films critical of AI, they could be on films critical of all kinds of things that these companies have their tentacles in,” Thompson said.

Stories about tech company founders can be attractive to audiences, most notably with the 2010 film “The Social Network” about the founding of Facebook. That film earned $225 million worldwide at the box office, according to Paul Dergarabedian, head of marketplace trends at Rentrak. “The Social Network” came out a time when many people were talking about Facebook and had big talent behind it, including director David Fincher, Dergarabedian said.

“Neon is a perfect custodian for this film, and they will shepherd it to the big screen, I think very effectively,” he said. “They’re very filmmaker-centric … I think they found the perfect home with Neon.”

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“Artificial” features major talent, with actor Monica Barbaro portraying former OpenAI Chief Technology Officer Mira Murati, and Ike Barinholtz as Elon Musk. Other actors include Jason Schwartzman and Billie Lourd.

Director Guadagnino has worked on films including “Challengers” and “Call Me By Your Name.”

Staff writer Samantha Masunaga contributed to this report.

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Young Washington (Christian Movie Review) – The Collision

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Young Washington (Christian Movie Review) – The Collision

About the Film 

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On the Surface

For Consideration

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Beneath The Surface

Engage The Film

The Makings of a Leader

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  • Daniel holds a PhD in “Christianity and the Arts” from The Southern Baptist Theological Seminary. He is the author/co-author of multiple books and he speaks in churches and schools across the country on the topics of Christian worldview, apologetics, creative writing, and the Arts.

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’47 Ronin’ director Carl Erik Rinsch sentenced to 30 months in prison for Netflix fraud case

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’47 Ronin’ director Carl Erik Rinsch sentenced to 30 months in prison for Netflix fraud case

Carl Erik Rinsch, the director of the 2013 Keanu Reeves action film “47 Ronin,” will serve more than two years in federal prison for defrauding Netflix of $11 million.

U.S. District Judge Jed S. Rakoff on Monday sentenced 48-year-old Rinsch to 30 months in prison, the U.S. Attorney’s Office, Southern District of New York, announced. Federal prosecutors convicted Rinsch in December of wire fraud, money laundering and other counts. A legal representative for Rinsch did not immediately respond to a request for comment on Tuesday.

Federal prosecutors indicted Rinsch in March 2025, alleging the $11 million went into Rinsch’s personal accounts. The filmmaker “quickly transferred” the money from the Rinsch Co. account, where it had been deposited March 6, 2020, by Netflix, through additional accounts until about $10.5 million wound up weeks later in a personal brokerage account. He lost more than half of that money in less than two months via risky investments in the stock market, the indictment said.

Though Rinsch told the streamer that his sci-fi show “White Horse” was progressing nicely, the filmmaker allegedly moved the remaining money into cryptocurrency and profited from crypto speculation over the next couple of years. The streamer had invested around $44 million in the show. Rinsch was accused of spending around $10 million on five Rolls-Royces, a Ferrari, watches, clothing, luxury bedding and linens, credit card bills, attorneys to sue Netflix for more money, and lawyers to work on his divorce.

He was arrested in West Hollywood and released the same day after agreeing to post a $100,000 bond to guarantee his appearance in a New York federal court.

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Rinsch never finished the Netflix show.

During his sentencing, Rinsch and his legal team told the court his behavior was a result of mental health struggles and medication problems and they are working to address those issues with a new care provider, the Associated Press reported.

“I failed to recognize the danger of the state I was in,” Rinsch said, though his mental issues were not described in court, and his attorneys declined to provide further detail.

Ahead of the sentencing, Reeves — the star of Rinsch’s most notable project to date — penned a letter in May requesting “leniency and mercy as well as justice” in the filmmaker’s sentencing.

In addition to prison time, Rinsch must serve three years of supervised release, forfeit the $11 million and pay $700 in mandatory special assessments, according to Monday’s announcement. U.S. Attorney Jay Clayton said in the announcement: “Today’s sentence sends a deterrent message: fraud will not be tolerated.”

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The Associated Press and former Times assistant editor Christie D’Zurilla contributed to this report.

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