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After Warner Bros. merger, changes are coming to the historic Paramount lot. Here’s what to expect

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After Warner Bros. merger, changes are coming to the historic Paramount lot. Here’s what to expect

With Paramount Skydance’s acquisition of Warner Bros. expected to saddle the combined company with $79 billion in debt, Paramount executives are looking to do away with redundant assets including real estate — and there is a lot of that.

Chief in the public’s imagination are their historic studios in Burbank and Hollywood, where legendary films and television show have been made for generations and continue to operate year-round.

“Both of these studios are in the core [30-mile zone,] the inner circle of where Hollywood talent wants to be,” entertainment property broker Nicole Mihalka of CBRE said. “It’s very prime real estate.”

When Sony and Apollo were bidding for Paramount in early 2024, their plan was to sell the Paramount property, but there is no indication that Paramount would part with its namesake lot.

For now, Paramount’s plan is to keep both studios operating with each studio releasing about 15 films a year, but the goal is to eventually consolidate most of the studio operations around the Warner Bros. lot in Burbank in order to to eliminate redundancies with the Paramount lot on Melrose Avenue, people close to Chief Executive David Ellison said.

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A view of the Warner Bros. Studios water tower Feb. 23, 2026, in Burbank.

(Eric Thayer / Los Angeles Times)

Paramount would not look to raze its celebrated studio lot — the oldest operating film studio in Los Angeles — because of various restrictions on historic buildings there. Paramount also has a relatively new post-production facility on site and will likely need to the studio space.

Instead, the plan would be to lease out space for film productions, including those from combined Paramount-HBO streaming operations. Ellison also is considering plans to develop other parts of the 65-acre site for possible retail use, as well as renting space for commercial offices.

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The studios’ combined property holdings are vast, and real estate data provider CoStar estimates they have about 12 million square feet of overlapping uses, including their studio campuses, offices and long-term leases in such film centers as Burbank, Hollywood and New York.

Century-old Paramount Pictures Studios is awash in Hollywood history — think Gloria Swanson as Norma Desmond desperately trying to enter its famous gate in “Sunset Boulevard,” and other classics such as “The Godfather,” “Titanic” and “Breakfast at Tiffany’s.”

The lot, however, is a congested warren of stages, offices, trailers and support facilities such as woodworking mills that date to the early 20th century. The layout is byzantine in part because Paramount bought the former rival RKO studio lot from Desilu Productions to create the lot known today.

Warner Bros. occupies 11 million square feet and owns 14 properties totaling 9.5 million square feet, largely in the United States and United Kingdom, CoStar said. About 3 million square feet of that commercial property is in the Los Angeles area.

The firm’s portfolio also includes the sprawling Warner Bros. Studios Leavesden complex in the U.K. and Turner Broadcasting System headquarters in Atlanta.

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Paramount Skydance occupies 8 million square feet and owns 14 properties totaling 2.1 million square feet, according to CoStar. In addition to its Hollywood campus, Paramount’s holdings include prominent buildings in New York such as the Ed Sullivan Theater and CBS Broadcast Center.

Warner Bros. operates a 3-million-square-foot lot in Burbank with more than 30 soundstages — along with space for building sets and backlot areas — where famous movies including “Casablanca” and television shows such as “Friends” were filmed. Paramount’s 1.2-million-square-foot Melrose campus anchors a broader network of owned and leased production space, CoStar said.

Paramount’s lot is already cleared for more development. More than a decade ago, Paramount secured city approval to add 1.4 million square feet to its headquarters and some adjacent properties owned by the company.

The redevelopment plan, valued at $700 million in 2016, underwent years of environmental review and public outreach with neighbors and local business owners.

The plan would allow for construction of up to 1.9 million square feet of new stage, production office, support, office, and retail uses, and the removal of up to 537,600 square feet of existing stage, production office, support, office, and retail uses, for a net increase of nearly 1.4 million square feet.

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The proposal preserves elements of the past by focusing future development on specific portions of the lot along Melrose and limited areas in the production core, architecture firm Rios said.

The Warner Bros. and Paramount lots “are two of the most prime pieces of real estate in the country,” Mihalka said. “These are legacy assets with a lot of potential to be [tourist] attractions in addition to working studios.”

Hollywood is still reeling from previous mergers, in addition to a sharp pullback in film and television production locally as filmmakers chase tax credits offered overseas and in other states, including New York and New Jersey.

Last year, lawmakers boosted the annual amount allocated to the state’s film and TV tax credit program and expanded the criteria for eligible projects in an attempt to lure production back to California. So far, more than 100 film and TV projects have been awarded tax credits under the revamped program.

The benefits have been slow to materialize, but Mihalka predicts that the tax credits and desirability of working close to home will lead to more studio use in the Los Angeles area, including at Warner Bros. and Paramount.

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“These are such prime locations that we’ll see show runners and talent push back on having shows located out of state and insist on being here,” she said. “I think you’re going to see more positive movement here.”

Times staff writer Meg James contributed to this report.

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‘Avatar’ Suit Focuses on Hot Topic in A.I. Age: A Character’s Face

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‘Avatar’ Suit Focuses on Hot Topic in A.I. Age: A Character’s Face

An actress accused the director James Cameron of stealing her likeness to create an “Avatar” character in a lawsuit filed on Tuesday in California — a case that reflects a core fear among Hollywood performers in the artificial intelligence age: losing control of their own faces.

The actress, Q’orianka Kilcher, also sued Disney, which controls the multibillion-dollar “Avatar” franchise, which started in 2009.

“In the age of A.I., our likeness is no longer safe,” Ms. Kilcher, 36, said in an interview. “While what happened to me is personal, it’s also a big warning that, if we don’t act now, this type of thing will become standard. This case is about the future of identity.”

The lawsuit involves Neytiri, the digitally created, blue-skinned warrior princess in Mr. Cameron’s three “Avatar” blockbusters. According to the complaint, Mr. Cameron used a photo of Ms. Kilcher as a teenager — without her knowledge — as the foundation for Neytiri, incorporating her features “directly into his production art” and digital production pipeline.

“Neytiri’s lips, chin, jawline and overall mouth shape” in the trilogy “are Q’orianka Kilcher’s,” the complaint said. “This was not a fleeting inspiration or a vague homage; it was a literal transplant of a real teenager’s facial structure.”

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In 2010, Ms. Kilcher, who is also an Indigenous rights activist, met Mr. Cameron by chance at a charity event in Hollywood, where he told her that she was the “early inspiration” for Neytiri’s look, according to the complaint. “She did not take this to mean that her actual face had been replicated,” the complaint said.

Ms. Kilcher is suing now, the complaint said, because of an interview that Mr. Cameron gave to a French media outlet in 2024. In the interview, Mr. Cameron mentions Ms. Kilcher and “points to an image of Neytiri and says unambiguously: ‘This is actually her lower face,’” the complaint said. The interview came to her attention a year later.

“For the first time in a public forum, Cameron explicitly admitted the full truth about Neytiri’s design,” according to the complaint, which was filed in the U.S. District Court for the Central District of California in Los Angeles. “One of Hollywood’s most powerful filmmakers exploited a young Indigenous girl’s biometric identity and cultural heritage to create a record-breaking film franchise, without credit or compensation to her.”

A lawyer for Mr. Cameron did not respond to a request for comment. Disney had no immediate comment.

Ms. Kilcher’s action is the latest in a large number of legal attacks on “Avatar” over the years — almost all of them resolved by courts in Mr. Cameron’s favor, including five separate lawsuits accusing him of copyright infringement or the stealing of ideas. A sixth infringement lawsuit is ongoing and was expanded last month.

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In part, Ms. Kilcher is suing under California’s decades-old “right of publicity” statute, which allows people to bring claims against unauthorized use of their identities. It’s a complex area of the law that has taken on a new immediacy in the age of generative A.I., an emerging technology that allows anyone with an internet connection to easily create images that replicate existing art, photographs and human likenesses.

Generally speaking, right-of-publicity laws (about 25 states have one) balance First Amendment protections by distinguishing between commercial exploitation (using a likeness to sell a product) and expressive works (such as news, art, parody). But “there is not always a bright line,” said Jennifer E. Rothman, a professor at the University of Pennsylvania’s Carey Law School who is viewed as a leading authority on right-to-privacy law.

Ms. Kilcher’s break in Hollywood came in 2005 when, as a 14-year-old, she was cast as Pocahontas in Terrence Malick’s “The New World.” She has since acted in films like “Dog” and TV shows like “Yellowstone,” and is a member of the Academy of Motion Picture Arts and Sciences.

Ms. Kilcher is asking for damages that include “all profits” attributable to the unauthorized use, including from the sale of “Avatar” tickets; the three “Avatar” films have collected $1.8 billion at the North American box office alone.

“The damages we are asking for are commensurate with the exploitation,” Arnold P. Peter, one of Ms. Kilcher’s lawyers, said in an interview.

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Crypto exchange Coinbase to lay off 14% of staff as AI reshapes work

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Crypto exchange Coinbase to lay off 14% of staff as AI reshapes work

Cryptocurrency exchange Coinbase said it’s slashing roughly 14% of its workforce, or about 700 workers, partly because artificial intelligence is reshaping the way people work.

“The biggest risk now is not taking action. We are adjusting early and deliberately to rebuild Coinbase to be lean, fast, and AI-native,” Coinbase Chief Executive and co-founder Brian Armstrong said in a Tuesday email to employees.

The email, which was posted on social media, said engineers with the help of AI are completing work in days rather than weeks. As more tasks get automated, that’s made it possible for the company to lean on smaller teams.

The company also cited other factors contributing to the job losses, including the volatility of the cryptocurrency business.

Founded in San Francisco, Coinbase is the largest cryptocurrency exchange in the United States. Millions of people use its platform to buy, sell, transfer and store cryptocurrency such as Bitcoin.

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Coinbase is among tech companies that have been laying off workers and pointing to how AI is making workers more productive. Although some experts say the role AI has been playing is overblown, advancements in technology have also made it possible to generate code and automate other tasks. Companies are also spending more on artificial intelligence, some building new AI-powered gadgets or building out new data centers.

This year, companies such as Block, Meta, Oracle and more have announced they’re slashing thousands of workers. From January to March, tech companies have announced 52,050 layoffs, up 40% from the same period last year, according to outplacement and executive coaching firm Challenger, Gray & Christmas.

Coinbase is also changing how it operates, Armstrong told employees. It’s reducing management layers and some leaders will oversee 15 workers or more, his email said. Managers will operate like “player-coaches” and it’s experimenting with “one person teams” in which the role of an engineer, designer and product manager are part of one position.

“AI is bringing a profound shift in how companies operate, and we’re reshaping Coinbase to lead in this new era,” Armstrong told employees. “This is a new way of working, and we need to leverage AI across every facet of our jobs.”

Coinbase largely makes money from cryptocurrency transaction fees, but trading activity has slowed. In the fourth quarter of 2025, the company reported total revenue of roughly $1.8 billion, missing analysts’ expectations. The company posted a net loss of $667 million during that quarter, which it partly attributed to losses in certain strategic investments.

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As of December, Coinbase had more than 4,900 employees, according to its website. Although the company leased office space in San Francisco, it has allowed employees to work remotely and doesn’t have a physical headquarters.

Coinbase’s share price fell more than 2% on Tuesday to $197.75.

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U.S. Trade Deficit Grew in March

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U.S. Trade Deficit Grew in March

The U.S. trade deficit in goods and services rose to $60.3 billion in March, increasing 4.4 percent from the previous month, after the Supreme Court struck down President Trump’s global tariffs, according to data from the Commerce Department released on Tuesday.

Exports grew 2 percent in the month, to a record $320.9 billion, as the United States exported more oil, soybeans and industrial supplies. The U.S. trade surplus in petroleum hit a record in March, as war with Iran pushed up the price of oil and U.S. energy exports. Imports also gained 2.3 percent in March, to $381.2 billion. The combination increased the monthly trade deficit, the gap between what the United States imports and what it exports.

Tariffs resulted in up-and-down swings in the trade deficit last year. The monthly trade deficit is now somewhat lower than it was in 2024. But overall, the figure hit a record last year, as the United States continued to import high-priced computer chips and weight-loss drugs, and importers stockpiled foreign goods before tariffs took effect.

The data provided the first snapshot of trade since the Supreme Court ruling forced major changes to the Trump administration’s tariff regime.

On Feb. 20, the Supreme Court ruled that Mr. Trump had exceeded his authority last year when he used an emergency law to impose steep tariffs on nearly every nation.

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That ruling forced the administration to withdraw the double-digit tariffs it had issued under that law, which varied by country based on bilateral trade deficits. Mr. Trump immediately moved to replace those levies with a flat 10 percent tariff, issued under a legal authority known as Section 122.

The Section 122 tariff will expire in July unless Congress votes to reauthorize it. So the Trump administration has been working on tariffs to replace it. It has started two trade investigations under another legal provision known as Section 301, which allows the president to impose tariffs in response to unfair trade practices.

One of the new investigations would target countries that don’t have laws blocking imports made with forced labor. The other centers on what the administration calls “excess capacity” among 16 of the country’s largest trading partners.

The Trump administration says overproduction in the factory sectors of some foreign countries has resulted in large and persistent U.S. trade deficits with those nations. Representatives from various industries, ranging from sugar to technology to chemicals, are set to testify about the investigation on Tuesday and Wednesday in Washington this week.

Next week, Mr. Trump is expected to visit Beijing, for a meeting with the Chinese leader that will be partly focused on trade. U.S. imports from China have shrunk significantly, as the administration has imposed high tariffs on Chinese goods, and companies have relocated supply chains out of the country.

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