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Paramount throws in more cash in bid for Warner; Comcast wants to combine assets with NBCUniversal

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Paramount throws in more cash in bid for Warner; Comcast wants to combine assets with NBCUniversal

Paramount is raising the stakes in its bid for Warner Bros. Discovery, upping its offer for the assets with backing from Middle Eastern sovereign wealth funds, including Saudi Arabia, while rival Comcast has proposed creating a new entertainment entity.

Instead of offering cash, Comcast has proposed combining NBCUniversal with HBO and the Warner Bros. film and television studios to form a separate stand-alone entertainment company, according to people familiar with the bids but not authorized to comment.

Such a combination would marry robust film studios, deep libraries and middling streaming services, Warner’s HBO Max and NBCUniversal’s Peacock. It would give Universal’s theme parks a wealth of fan-favorite characters — including Batman, Harry Potter and Sheldon Cooper to build new attractions.

Comcast, which would maintain the controlling stake, is not interested in absorbing Warner’s basic cable channels.

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Representatives of Paramount, Comcast, Netflix and Warner Bros. Discovery declined to comment, citing the confidential nature of the bids.

Comcast, Netflix and Paramount each submitted second-round proposals to Warner’s bankers Monday. Warner Bros. Discovery hopes to select an auction winner this month.

Paramount, controlled by Oracle co-founder Larry Ellison and his family, has been pursuing Warner Bros. Discovery since September — one month after the billionaire family took the keys to Paramount from former owner Shari Redstone.

With its latest offer, Paramount is hoping to stay competitive with a largely cash bid from streaming giant Netflix, which is interested in Warner Bros.’ enduring intellectual property and the studio’s prestigious 110-acre lot in Burbank.

Bid amounts were unclear Tuesday.

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However, analysts say the various combinations could value Warner Bros. Discovery at nearly $70 billion — triple the company’s trading levels in early September.

Paramount is the only bidder interested in swallowing Warner’s portfolio of cable channels that include CNN, TNT, Food Network, Cartoon Network and TLC.

Paramount’s bid provides debt financing from Apollo Global Management and sovereign wealth funds from Saudi Arabia, Qatar and the United Arab Emirates, the knowledgeable people said. Should Paramount win the Warner auction, the Ellison family and RedBird Capital Partners would maintain majority control of the bulked-up enterprise.

The Middle Eastern investors would have only a small stake, one of the knowledgeable people said.

Variety and Bloomberg previously reported on the Middle Eastern wealth funds’ involvement in Paramount’s bid. Bloomberg first reported on Comcast‘s bid structure.

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Each of the various deal configurations would face stiff regulatory scrutiny.

President Trump considers Larry Ellison a friend, so Paramount’s proposed takeover of Warner probably would face a smooth regulatory review process in the U.S. The president has indicated he prefers having Ellison control CBS — part of Paramount — and CNN, which is owned by Warner Bros. Discovery.

Combining Paramount Pictures and Warner Bros. would give the company about 30% of domestic movie box office.

Still, foreign regulators might wince at a deal that was heavily pushed by Trump, not to mention one that includes Saudi investors in a major entertainment entity that owns CNN, one of the world’s largest news organizations.

Last month, tech scion David Ellison, chairman and chief executive of Paramount, was guest at a White House dinner to honor Saudi Crown Prince Mohammed bin Salman.

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That state dinner — seven years after bin Salman was considered a pariah after the murder of journalist Jamal Khashoggi — underscored Washington’s increasingly warm relations with the Saudi royal family.

But any deal also would be subject to regulators in Europe and Asia.

Comcast would encounter a particularly bumpy regulatory path.

The Philadelphia firm is controlled by cable mogul Brian Roberts, who has long felt Trump’s scorn, in part because of his company’s ownership of liberal-leaning news channel MS NOW, previously known as MSNBC. Comcast is in the process of spinning off MS NOW and other cable channels into a new company called Versant.

Still, some observers believe that opposition by Trump would be enough to thwart Justice Department approval of a Comcast takeover of Warner Bros.

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Netflix’s bid also has raised antitrust concerns.

“If Netflix acquires Warner Bros., the streaming wars are effectively over,” Bank of America media analysts wrote in a report this week. “Netflix would become the undisputed global powerhouse of Hollywood beyond even its currently lofty position.”

The Los Gatos, Calif., streaming pioneer has more than 300 million subscribers worldwide. Adding HBO Max would give the company 70 million more, which would dwarf competing services.

“Netflix currently wields unequaled market power,” U.S. Rep. Darrell Issa (R-Bonsall) wrote in a letter last month to U.S. Atty. Gen. Pam Bondi, whose department would oversee the deal review.

“Adding both HBO Max’s subscribers and Warner Bros.’ premier content rights would further enhance this position, reportedly pushing the combined entity above a 30 percent share of the streaming market: a threshold traditionally viewed as presumptively problematic under antitrust law,” Issa wrote.

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‘They’re willing to fight.’ WGA leaders brace for tough negotiations

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‘They’re willing to fight.’ WGA leaders brace for tough negotiations

It has been nearly three years since Hollywood writers went on a historic strike that lasted 148 days and ushered in an extraordinary period of labor unrest that virtually shut down the film and TV business.

Now, writers are poised to commence another round of bargaining with the major studios on a new three-year film and TV contract. Few observers think the union is girding for another showdown, especially at a time when many of its members are struggling to find work amid media consolidation and belt-tightening.

But in advance of negotiations that begin on Monday , union leaders are eager to dispel any perception that they might have scaled back their demands.

“Our members have shown many times that they’re willing to fight for what we need as a collective group,” WGA West President Michele Mulroney said in an interview. “And there’s no exception here.”

With its current contract expiring on May 1, the WGA hopes to improve its members’ healthcare plans, increase streaming residuals and expand AI protections.

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Michele Mulroney speaks as the Screen Actors Guild (SAG-AFTRA) and Writers Guild of America (WGA) join GLAAD in releasing the 11TH Annual GLAAD Studio Responsibility Index at The Village at Ed Gould Plaza Los Angeles LGBT Center in Los Angeles, California, on September 14, 2023.

(Michael Tran/AFP via Getty Images)

Ellen Stutzman, the union’s executive director, said despite popular belief, the studios have weathered the transition from cable television to streaming “very well,” citing their efforts to maximize revenue with streaming bundling, rising subscription fees and advertising revenue.

“Writers are watching as Netflix and Paramount are fighting it out to acquire Warner Bros… Paramount is spending $81 billion,” said Stutzman. “There’s money for a fair deal for writers.”

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The union leaders agree that this year’s negotiations are all focused on the sustainability of a writer’s career.

A spokesperson from the Alliance of Motion Picture and Television Producers, which represents the major studios in negotiations, said in a statement that they look forward “to engaging in a constructive and collaborative bargaining process with the WGA. Through continued good-faith dialogue, we are confident we can reach balanced solutions that support talented writers while sustaining the long-term success and stability of our industry and its workforce.”

A top priority for the WGA is to increase the caps that companies contribute to the union’s healthcare plan. Union officials say the current cap has remain unchanged for two decades as healthcare contributions have steadily declined due to fewer writers working.

AI is also top of mind for the WGA.

In 2023, the guild secured various AI protections by establishing that AI isn’t a writer and nothing it produces is considered literary material.

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But as major studios start to make deals with AI companies, like Disney’s $1 billion investment into OpenAI’s Sora platform, many writers are concerned about how their work could be used.

“AI is using [studios’] IP, which is stuff that we wrote to license these models,” said John August, the co-host of the “Scriptnotes” podcast and WGA’s negotiating committee co-chair. “With the Sora deal, it seems clear that the companies intend to monetize this IP for use with AI.”

August says the union will be skeptical toward arguments that it’s still too early to seek more safeguards around such a nascent industry, citing the union’s past history with the rise of DVDs and the internet and how profoundly those technologies changed the compensation for writers.

“If you’re taking the work that we created to generate AI outputs, we are owed money. They’re using our work to do something down the road,” added August.

WGA’s negotiating committee also is looking to boost streaming residuals, expand the minimum number of people allowed in a writers’ room and add protections for scribes working on pilots.

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“We very much hope that lessons were learned in 2023 and that the AMPTP will come to the table ready to take our proposal seriously and to make a fair deal, and to do that quickly,” Mulroney said. “It provides stability for the companies and for our membership. It’s better for everybody.”

WGA is entering contract negotiations nearly a month after the actors’ union, SAG-AFTRA, began its bargaining sessions. Last week,
the AMPTP said it was extending negotiations another seven days.

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‘Ready or Not 2: Here I Come’ Review: Samara Weaving Gets Trapped in a More Dangerous — and Luridly Preposterous — Game

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‘Ready or Not 2: Here I Come’ Review: Samara Weaving Gets Trapped in a More Dangerous — and Luridly Preposterous — Game

“Ready or Not,” the 2019 horror-comedy hit that turned “The Most Dangerous Game” into an aristocratic Victorian funhouse slasher movie, was nothing more (or less) than a well-executed piece of ultraviolent schlock. Yet there’s a funny way in which that movie has more resonance now than it did then. Its depiction of a clan of homicidal sickos, who in accordance with the family “rules” end up trying to murder their son’s new bride by dawn (she’s played by Samara Weaving, who comes on like a final-girl-gone-psycho version of Margot Robbie), anticipated our current fixation on the hidden horrors of the Epstein class.

Given all that, you’d expect the follow-up to be even timelier. And “Ready or Not 2: Here I Come,” a go-more-splattery-or-go-home sequel, is a film that very much taps into our vision of “the elites” as a global cabal of evil. It’s also more gruesomely over-the-top than “Ready or Not” (if that’s even possible), not to mention more operatic, more debased, more macabre, and more of a luridly preposterous cartoon. But all of that made it an ideal film to showcase to a crowd of screaming hellcats at SXSW, where the movie premiered tonight.

Is “Ready or Not 2” the bloody megaplex bash as knowing midnight movie? Does it combine honest laughs with a general invitation to crack up at its overboiled misanthropic cheesiness? Does it make up rules as it goes along? Yes and yes and yes, though we increasingly live in a movie world where all those things are attributes. “Ready or Not 2” delivers exactly what it promises: a garishly booby-trapped, winkingly clever-dumb good time. If that’s your idea of a good time.

The film opens by replaying the final scene of “Ready or Not”: Samara Weaving’s Grace, drenched in blood and pierced with wounds, having dispatched the most threatening members of the La Domas family (the rest of them exploded into bloody smithereens — cursed by her having survived The Game), sits on the steps outside the mansion that’s going up in flames behind her. She lights a cigarette and takes a weary victory puff, at which point a rescue worker asks, “What happened to you?” She replies, “In-laws.” She is then taken to a Connecticut hospital, where she wakes up handcuffed to the bed, with a cop informing her that she is wanted for murder and arson.

But that’s just a red herring. At the clinic, Grace is reunited with her younger sister, Faith (Kathryn Newton), who’s been estranged from her for seven years. Attacked by a coked-up goon who’s a harbinger of threats to come, Grace changes from her hospital duds back into her signature bloody wedding dress and dirty yellow sneakers, and that’s when she and Faith find themselves, bound and ball-gagged, sitting before the Council, a star chamber that consists of the representatives of six families, one of whom were the La Domases.

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There’s another game afoot — or, at least, another Inviolable Rule dictated by the late Mr. Le Bail, who founded the La Domas fortune. (But why would his rules apply to other families? Oh, never mind.) A second dusk-till-dawn challenge looms: With the Le Domases gone, one member of each of the Council’s remaining clans must try to kill Grace. Whoever does will occupy the high seat and become the most powerful person on Earth. (If they fail, Grace will occupy the high seat.)

We meet the ailing old man who currently occupies that post — Chester Danforth, played by the legendary film director David Cronenberg, who makes his quizzical dourness felt for one scene. Chester has two adult twins, Ursula (Sarah Michelle Gellar) and Titus (Shawn Hatosy), who are theoretically aligned but will duke it out for power. The other families are represented by characters who are like suspects in a third-rate “Knives Out” movie. But once again: Are we laughing with or at what low-kitsch nitwits they are? Maybe there’s no longer any difference.

“Ready or Not,” set inside the La Domas mansion, had a compact trap-door video-game ingenuity. The action of “Ready or Not 2” sprawls all over the grounds that make up the Council compound, and for a while the film is a ham-handed and rather scattershot slaughter fest. Viraj (Nadeem Umar-Khitab), a stoned club hound, proves to be a bumbler with a shotgun; other would-be assassins strike out in comparable ways. This gives Grace and Faith, between attempted killings, a chance to air their differences and engage in some sisterly therapy. But their relationship, as dramatized by Guy Busick and R. Christopher Murphy’s screenplay, is overdone and unconvincing. Faith despises Grace…for having “abandoned” her by going off to college. For years, both have been living in New York City…without any awareness of the fact. Are we supposed to believe any of this? It’s just a mechanism. The film’s co-directors, Matt Bettillini-Olpin and Tyler Gillett, who made the first film (which won them the right to direct the rebooted “Scream” and “Scream VI”), are kinesthetic gamesmen who are also one-dimensional psychologists.             

Yet they know how to bang the thriller puzzle pieces together, and to stage a scene of personal combat so that you feel the existential viciousness. At one point, they get two ultraviolent duels going at once: Grace facing off against Francesca (Maia Jae), who was originally engaged to Alex La Domas (it’s a cat fight on steroids), while the depraved rich boy Titus, in another locale, shows his murderous colors, the whole double fight set to “Total Eclipse of the Heart” (are you laughing yet?). Titus and Ursula make tasty villains, with Sarah Michelle Gellar turning up the icy hauteur, and Shawn Hatosy amusingly evoking the entitled blankness of George W. Bush. Standing above it all is Elijah Wood as the Council lawyer, who seems to be silently smirking at everything that happens, which is not an inappropriate response.  

It all climaxes with another wedding, this one unfolding in the church of Satan. It’s a scene that suggests “Eyes Wide Shut” as remade by Jerry Bruckheimer, and in that sense you could say that it taps into current obsessions. Will “Ready or Not 2” satisfy the audience that made “Ready or Not” a hit? No doubt. The way Bettinelli-Olpin and Gillett work, the film has enough pulp craft to walk the line between violence and camp. Weaving, even more than before, makes Grace an ingénue gone banshee. But if there’s ever a “Ready or Not 3,” it would be good to see the elites in it do something that’s as interesting as it is brutal.  

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‘We are not alone’: Steven Spielberg shares his true feelings about aliens and UFOs at SXSW

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‘We are not alone’: Steven Spielberg shares his true feelings about aliens and UFOs at SXSW

One of the most anticipated events at this year’s SXSW Film & TV Festival wasn’t a movie at all, but a speaking appearance by director Steven Spielberg. The talk, a live taping of the podcast “The Big Picture” lead by co-host Sean Fennessey, covered many aspects of the Hollywood legend’s career, with a through line of sci-fi and space aliens in conjunction with Spielberg’s upcoming alien invasion thriller “Disclosure Day,” due June 12.

Though no real details about the new film were revealed, references to it peppered the conversation as if it were very much on Spielberg’s mind — the film he was ostensibly there to promote.

To an audience that included filmmakers Robert Rodriguez and Daniel Kwan, the event began with a clip reel that served as a reminder (as if anyone in the packed hotel ballroom needed one) of just how influential the 79-year-old filmmaker is. A selection of Spielberg’s work plays like a trailer for the idea of movies themselves; this one included “Jaws,” “Raiders of the Lost Ark,” “E.T.” “Schindler’s List,” “Jurassic Park,” “The Sugarland Express,” “Catch Me If You Can,” “Munich” and many more.

Fennessey noted that Spielberg wanted to make 1977’s “Close Encounters of the Third Kind,” his first sci-fi movie about the existence of aliens from other worlds, even before making 1975’s “Jaws.” Spielberg went further, saying he had actually wanted to make “Close Encounters” — then just referred to as “The UFO Movie” — even before 1974’s “Sugarland Express.”

Asked about President Obama’s recent comments about the possible existence of intelligent life elsewhere in the universe and how his own feelings may have evolved over the years, Spielberg said, “I think that for one thing, when President Obama made that comment, I thought, ‘Oh my God, this is so great for “Disclosure Day,”’ and then, two days later, he stepped back the comment and said what he believed in was life in the cosmos, which of course everybody should believe that because no one should ever think that we are the only intelligent civilization in the entire universe. So I’ve always believed, even as a kid, that we were not alone. So that just goes without saying. The big question is: Are we alone now?”

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He added this interest was “reinvigorated” by a 2017 New York Times article about U.S. Navy pilots seeing unexplained aerial phenomenon, then by a 2023 Congressional subcommittee hearing on the topic.

“I don’t know any more than any of you do,” Spielberg said, “but I have a very strong, sticky suspicion that we are not alone here on Earth right now. And I made a movie about that.”

Spielberg and “The Big Picture” co-host Sean Fennessey taping a live podcast at SXSW on Friday.

(Tibrina Hobson / Getty Images)

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As to how he feels about that possibility, Spielberg added, “I’m not afraid of any aliens, there or here. I have no fears about that, whatsoever. I think our movie does take into consideration, without giving too much away, the social dislocation that could occur, theologically, if it would be announced that there’s evidence — not only evidence, where it’s interaction that’s has been going on for decades, that we are not just now finding out about. It is going to cause a disruption in a lot of belief systems, but I don’t think it’s a lethal disruption at all.”

Among other topics that were discussed, Spielberg revealed he is developing a western that would shoot in Texas, though he was reluctant to discuss it in any further detail except to say it would contain “no tropes.”

He also said he is not on any social media, but did install Instagram on his phone once for two weeks and felt as if he had been abducted by aliens for the amount of time he lost.

To that end, he also noted, with comic frustration, how he himself has never had any sort of alien encounter.

”I made a movie called ‘Close Encounters of the Third Kind.’ I haven’t even had a close encounter of the first or second kind,” Spielberg said. “Where’s the justice in that? If you’re listening out there, I’m talking to you.”

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There was a brief moment of confusion when Fennessey asked Spielberg for his thoughts on AI and Spielberg wasn’t clear if he was asking about his own 2001 movie or the broader topic of artificial intelligence.

Once that was cleared up (Fennessey meant the latter, a serious labor issue in Hollywood), Spielberg noted he has not used AI on any of his own films. “I don’t want to go into a whole rant about AI because I am for AI in many different disciplines. I am not for AI if it replaces a creative individual.”

Speaking to the theatrical experience, Spielberg made a brief allusion to the flare-up around comments by Timothée Chalamet regarding the popularity of opera and ballet in relation to the movies.

He noted that he does not decry the at-home streaming experience and that he works with Netflix, but that “for me, the real experience comes when we can influence a community to congregate in a strange dark space. All us are strangers and, at the end of a really good movie experience, we are all united with a whole bunch of feelings that we walk into the daylight with or into the nighttime with. And there’s nothing like that. I mean, it happens in movies, it happens at concerts and it happens in ballet and opera.”

Here there was a round of applause from the audience. “And we want that sustained and we want that to go forever.”

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Spielberg noted how many of his favorite filmmakers, including David Lean and Billy Wilder and more recent examples such as Paul Thomas Anderson and Christopher Nolan, are always making films that feel different from what they have done before. He sees himself as part of that same school.

“If we’re just not making the same sequel over and over and over again and they’re not the same Marvel title over and over and over again, we all get a real chance to experience something, which is freshness,” Spielberg said. “And that is why I don’t judge my accomplishments based on a single film.”

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