Business
'South Park' dispute escalates as creators accuse Paramount's buyers of meddling
The team behind Comedy Central’s “South Park” raised allegations that Skydance Media and its associates overstepped their authority by meddling in Paramount Global’s business before they take control of the storied company.
The Los Angeles Times previously reported that negotiations over a “South Park” streaming deal have stalled amid Paramount’s protracted $8-billion sale to David Ellison’s Skydance Media. Skydance balked at a proposed $2-billion overall deal with “South Park” creators Trey Parker and Matt Stone, sources have said.
Federal securities laws forbid “gun-jumping,” a term that describes a company that exerts too much control over a business it is in the process of buying before the transaction closes. Under the terms of the merger deal, Paramount gave Skydance the ability to approve major deals while the sale is pending.
But this week, Park County — the business entity behind the long-running satirical cartoon — alleged that Ellison’s associates crossed the line by interfering with its negotiations with other companies.
In a series of letters, Park County questioned the conduct of Jeff Shell, a former NBCUniversal chief executive who is part of Ellison’s bidding team. Shell is a senior executive with RedBird Capital Partners, a private equity firm that is helping Skydance finance the Paramount deal.
In a Tuesday letter to RedBird’s general counsel, which was viewed by The Times, Park County’s lawyers accused Shell of committing “intrusive, unauthorized, and gun jumping misconduct” by inserting himself into the auction for “South Park” streaming rights and attempting to depress the show’s value.
The lawyers contended that “not one word” in the 160-page sale agreement between Skydance and Paramount authorized Skydance or Redbird to “intrude” into negotiations over “South Park” streaming deals.
“This misconduct is already causing destruction not only to the business of ‘South Park’… but also the productive decades-long relationship between artists and studio on an iconic show,” the lawyers wrote.
A spokeswoman for Skydance disputed misconduct by Shell, adding, “Any accusation that Jeff Shell tried to lower the price or devalue the franchise in any way is not only nonsensical but patently false.”
“Under the terms of the transaction agreement, Skydance has the right to approve material contracts,” the spokeswoman continued.
The dispute comes as the “South Park” creators work to line up a new streaming deal after its five-year pact with Warner Bros. Discovery’s Max service ended this week. Paramount wants to make the long-running Comedy Central show available on its Paramount+ platform. However, given the high cost of the show, Paramount wants to share the rights to the 333 episodes with another streaming service.
Knowledgeable people have said they expect “South Park” distribution fees to be valued at more than $200 million a year.
But Skydance hasn’t signed off, believing the deals to be too rich, according to multiple sources. Paramount executives think the show is worth the big bucks, given its enduring global popularity and legacy.
Park County has alleged Shell inserted himself into negotiations with two prospective partners: Netflix and Warner Bros. Discovery. Both have expressed interest in licensing the show.
Park County accused Shell of calling executives at those companies to lower their bids for “South Park,” which would deprive Parker, Stone and Paramount of a higher licensing fee.
Paramount owns half of a joint venture called South Park Digital Studios, which controls the streaming rights to the show. Stone and Parker control the other half of the venture that dates back to 2007.
“Mr. Shell’s proposed changes worsen the deal for South Park Digital Studios, and they appear to be designed to cheapen the business of Skydance Media’s acquisition target, Paramount Global,” Park County lawyer Joseph R. Taylor wrote in a Monday letter to Paramount executives.
“This misconduct is already causing destruction not only to the business of South Park through depressing offers for the [Subscription Video On Demand] rights, but also the productive decades-long relationship between artists and studio on an iconic show,” Taylor wrote. “Further misconduct of this nature will naturally force legal action.”
Two sources close to the matter said that Skydance has objected to the 10-year span of the proposed deals with Paramount+ and Max (soon to be renamed HBO Max) as well as the 10-year span for the overall deal with Parker and Stone. Skydance, the sources said, preferred five-year deals due to changes in the market.
Max’s current deal to stream “South Park” ended this week. However, due to the company’s interest in bidding for the rights, the episodes will remain on the service until a new deal can be worked out, said one person close to the company who was not authorized to speak publicly.
Paramount leaders want to lock down “South Park” streaming rights in the U.S. and abroad and were interested in extending Paramount’s $900-million overall deal with the “South Park” creators to guarantee the production of new episodes. But that deal doesn’t expire for another two years, and Skydance executives don’t want to extend that deal before they take control of Paramount, according to sources.
New episodes run first on Paramount’s basic cable network Comedy Central.
“South Park” is one of Paramount’s most important TV franchises. Along with “The Daily Show” with Jon Stewart, the four boys from the fictional Colorado hamlet of South Park put Comedy Central on the map for basic cable viewers.
During a May earnings call, Paramount co-Chief Executive Chris McCarthy — who runs Paramount’s media networks as well as Showtime and MTV Entertainment Studios — told investors that “South Park” episodes would begin streaming on Paramount+ in July, although that deal has not been nailed down.
Business
Senate committee kills bill mandating insurance coverage for wildfire safe homes
A bill that would have required insurers to offer coverage to homeowners who take steps to reduce wildfire risk on their property died in the Legislature.
The Senate Insurance Committee on Monday voted down the measure, SB 1076, one of the most ambitious bills spurred by the devastating January 2025 wildfires.
The vote came despite fire victims and others rallying at the state Capitol in support of the measure, authored by state Sen. Sasha Renée Pérez (D-Pasadena), whose district includes the Eaton fire zone.
The Insurance Coverage for Fire-Safe Homes Act originally would have required insurers to offer and renew coverage for any home that meets wildfire-safety standards adopted by the insurance commissioner starting Jan. 1, 2028.
It also threatened insurers with a five-year ban from the sale of home or auto insurance if they did not comply, though it allowed for exceptions.
However, faced with strong opposition from the insurance industry, Pérez had agreed to amend the bill so it would have established community-wide pilot projects across the state to better understand the most effective way to limit property and insurance losses from wildfires.
Insurers would have had to offer four years of coverage to homeowners in successful pilot projects.
Denni Ritter, a vice president of the American Property Casualty Insurance Assn., told the committee that her trade group opposed the bill.
“While we appreciate the intent behind those conversations, those concepts do not remove our opposition, because they retain the same core flaw — substituting underwriting judgment and solvency safeguards with a statutory mandate to accept risk,” she said.
In voting against the bill Sen. Laura Richardson, (D-San Pedro), said: “Last I heard, in the United States, we don’t require any company to do anything. That’s the difference between capitalism and communism, frankly.”
The remarks against the measure prompted committee Chair Sen. Steve Padilla, (D-Chula Vista), to chastise committee members in opposition.
“I’m a little perturbed, and I’m a little disappointed, because you have someone who is trying to work with industry, who is trying to get facts and data,” he said.
Monday’s vote was the fourth time a bill that would have required insurers to offer coverage to so-called “fire hardened” homes failed in the Legislature since 2020, according to an analysis by insurance committee staff.
Fire hardening includes measures such as cutting back brush, installing fire resistant roofs and closing eaves to resist fire embers.
Pérez’s legislation was thought to have a better chance of passage because it followed the most catastrophic wildfires in U.S. history, which damaged or destroyed more than 18,000 structures and killed 31 people.
The bill was co-sponsored by the Los Angeles advocacy group Consumer Watchdog and Every Fire Survivor’s Network, a community group founded in Altadena after the fires formerly called the Eaton Fire Survivors Network.
But it also had broad support from groups such as the California Apartment Association, the California Nurses Association and California Environmental Voters.
Leading up to the fires, many insurers, citing heightened fire risk, had dropped policyholders in fire-prone neighorhoods. That forced them onto the California FAIR Plan, the state’s insurer of last resort, which offers limited but costly policies.
A Times analysis found that that in the Palisades and Eaton fire zones, the FAIR Plan’s rolls from 2020 to 2024 nearly doubled from 14,272 to 28,440. Mandating coverage has been seen as a way of reducing FAIR Plan enrollment.
“I’m disappointed this bill died in committee. Fire survivors deserved better,” Pérez said in a statement .
Also failing Monday in the committee was SB 982, a bill authored by Sen. Scott Wiener, (D-San Francisco). It would have authorized California’s attorney general to sue fossil fuel companies to recover losses from climate-induced disasters. It was opposed by the oil and gas industry.
Passing the committee were two other Pérez bills. SB 877 requires insurers to provide more transparency in the claims process. SB 878 imposes a penalty on insurers who don’t make claims payments on time.
Another bill, SB 1301, authored by insurance commissioner candidate Sen. Ben Allen, (D-Pacific Palisades), also passed. It protects policyholders from unexplained and abrupt policy non-renewals.
Business
How We Cover the White House Correspondents’ Dinner
Times Insider explains who we are and what we do, and delivers behind-the-scenes insights into how our journalism comes together.
Politicians in Washington and the reporters who cover them have an often adversarial relationship.
But on the last Saturday in April, they gather for an irreverent celebration of press freedom and the First Amendment at the Washington Hilton Hotel: The White House Correspondents’ Association dinner.
Hosted by the association, an organization that helps ensure access for media outlets covering the presidency, the dinner attracts Hollywood stars; politicians from both parties; and representatives of more than 100 networks, newspapers, magazines and wire services.
While The Times will have two reporters in the ballroom covering the event, the company no longer buys seats at the party, said Richard W. Stevenson, the Washington bureau chief. The decision goes back almost two decades; the last dinner The Times attended as an organization was in 2007.
“We made a judgment back then that the event had become too celebrity-focused and was undercutting our need to demonstrate to readers that we always seek to maintain a proper distance from the people we cover, many of whom attend as guests,” he said.
It’s a decision, he added, that “we have stuck by through both Republican and Democratic administrations, although we support the work of the White House Correspondents’ Association.”
Susan Wessling, The Times’s Standards editor, said the policy is a product of the organization’s desire to maintain editorial independence.
“We don’t want to leave readers with any questions about our independence and credibility by seeming to be overly friendly with people whose words and actions we need to report on,” she said.
The celebrity mentalist Oz Pearlman is headlining the evening, in lieu of the usual comedy set by the likes of Stephen Colbert and Hasan Minhaj, but all eyes will be on President Trump, who will make his first appearance at the dinner as president.
Mr. Trump has boycotted the event since 2011, when he was the butt of punchlines delivered by President Barack Obama and the talk show host Seth Meyers mocking his hair, his reality TV show and his preoccupation with the “birther” movement.
Last month, though, Mr. Trump, who has a contentious relationship with the media, announced his intention to attend this year’s dinner, where he will speak to a room full of the same reporters he often derides as “enemies of the people.”
Times reporters will be there to document the highs, the lows and the reactions in the room. A reporter for the Styles desk has also been assigned to cover the robust roster of after-parties around Washington.
Some off-duty reporters from The Times will also be present at this late-night circuit, though everyone remains cognizant of their roles, said Patrick Healy, The Times’s assistant managing editor for Standards and Trust.
“If they’re reporting, there’s a notebook or recorder out as usual,” he said. “If they’re not, they’re pros who know they’re always identifiable as Times journalists.”
For most of The Times’s reporters and editors, though, the evening will be experienced from home.
“The rest of us will be able to follow the coverage,” Mr. Stevenson said, “without having to don our tuxes or gowns.”
Business
MrBeast company sued over claims of sexual harassment, firing a new mom
A former female staffer who worked for Beast Industries, the media venture behind the popular YouTube channel MrBeast, is suing the company, alleging she was sexually harassed and fired shortly after she returned from maternity leave.
The employee, Lorrayne Mavromatis, a Brazilian-born social media professional, alleges in a lawsuit she was subjected to sexual harassment by the company’s management and demoted after she complained about her treatment. She said she was urged to join a conference call while in labor and expected to work during her maternity leave in violation of the Family and Medical Leave Act, according to the federal complaint filed Wednesday in the U.S. District Court for the Eastern District of North Carolina.
“This clout-chasing complaint is built on deliberate misrepresentations and categorically false statements, and we have the receipts to prove it. There is extensive evidence — including Slack and WhatsApp messages, company documents, and witness testimony — that unequivocally refutes her claims. We will not submit to opportunistic lawyers looking to manufacture a payday from us,” Gaude Paez, a Beast Industries spokesperson, said in a statement.
Jimmy Donaldson, 27, began MrBeast as a teen gaming channel that soon exploded into a media company worth an estimated $5 billion, with 500 employees and 450 million subscribers who watch its games, stunts and giveaways.
Mavromatis, who was hired in 2022 as its head of Instagram, described a pervasive climate of discrimination and harassment, according to the lawsuit.
In her complaint, she alleges the company’s former CEO James Warren made her meet him at his home for one-on-one meetings while he commented on her looks and dismissed her complaints about a male client’s unwanted advances, telling her “she should be honored that the client was hitting on her.”
When Mavromatis asked Warren why MrBeast, Donaldson, would not work with her, she was told that “she is a beautiful woman and her appearance had a certain sexual effect on Jimmy,” and, “Let’s just say that when you’re around and he goes to the restroom, he’s not actually using the restroom.”
Paez refuted the claim.
“That’s ridiculous. This is an allegation fabricated for the sole purpose of sparking headlines,” Paez said.
Mavromatis said she endured a slate of other indignities such as being told by Donaldson that she “would only participate in her video shoot if she brought him a beer.”
“In this male-centric workplace, Plaintiff, one of the few women in a high-level role, was excluded from otherwise all-male meetings, demeaned in front of colleagues, harassed, and suffered from males be given preferential treatment in employment decisions,” states the complaint.
When Mavromatis raised a question during a staff meeting with her team, she said a male colleague told her to “shut up” or “stop talking.”
At MrBeast headquarters in Greenville, N.C., she said male executives mocked female contestants participating in BeastGames, “who complained they did not have access to feminine hygiene products and clean underwear while participating in the show.”
In November 2023, Mavromatis formally complained about “the sexually inappropriate encounters and harassment, and demeaning and hostile work environment she and other female employees had been living and experiencing working at MrBeast,” to the company’s then head of human resources, Sue Parisher, who is also Donaldson’s mother, according to the suit.
In her complaint, Mavromatis said Beast Industries did not have a method or process for employees to report such issues either anonymously or to a third party, rather employees were expected to follow the company’s handbook, “How to Succeed In MrBeast Production.”
In it, employees were instructed that, “It’s okay for the boys to be childish,” “if talent wants to draw a dick on the white board in the video or do something stupid, let them” and “No does not mean no,” according to the complaint.
Mavromatis alleges that she was demoted and then fired.
Paez said that Mavromatis’s role was eliminated as part of a reorganization of an underperforming group within Beast Industries and that she was made aware of this.
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