Business
California falls behind Texas in Fortune 500 ranking
Texas has dethroned California as the state with the most Fortune 500 companies.
The Fortune 500 list ranks the largest U.S. companies by revenue. This year, 57 of the top companies are headquartered in Texas, compared with California’s 56. It’s a reversal from two years ago when the Golden State had the pole position.
The Lone Star State was quick to claim the victory.
“Texas is the undisputed headquarters of headquarters,” Texas Gov. Greg Abbott said in a news release responding to the ranking, which was announced Wednesday. “The world’s leading businesses invest with confidence in Texas because of our welcoming business climate, predictable regulatory environment, and skilled and growing workforce. People and businesses are choosing Texas because Texas works.”
California’s corporate haters say they try to avoid the state’s high costs, income taxes and strict regulations, but the western state is still a top money maker.
“California dominates on nearly every other measure: its Fortune 500 companies are the most profitable ($647 billion), most valuable ($20 trillion), and employ more people than any other state (2.8 million workers),” Fortune said in a news release.
Indeed, despite the naysayers, Californian companies have been leading the world in developing artificial intelligence technology as well as the latest in space and defense tech.
The state is home to nearly 400 “unicorns,” or billion-dollar startups — more than any other state, according to CB Insights. It also gobbled up nearly two-thirds of U.S. venture capital last year, with San Francisco Bay Area startups such as OpenAI leading the way, according to the business information platform Crunchbase.
Texas and California have been in a tug-of-war for the crown. In 2024, after a decade, California bagged the top spot with 57 companies on the list, while Texas and New York tied in second with 52 companies each.
Healthcare giant McKesson, and oil companies Exxon Mobil and Chevron, were the top three Texas companies on the list. Apple, Alphabet, and Nvidia took the top positions in California.
Tesla, which relocated to Austin from Palo Alto in 2021, ranked 43rd on the list. Other major Fortune 500 companies that left California included Oracle, Charles Schwab and Chevron.
California’s population exodus has yet to fully recover from the pandemic times in 2020. The state’s high cost of living and regulatory environment are often cited as reasons for residents opting to move.
More recently, California’s proposal for a one-time tax on billionaires prompted some, including Peter Thiel and Larry Page, to open new offices outside the state.
Some smaller companies are also leaving the state, but nearly the same number are being set up. From 2011 to 2021, the state lost a net 2% of its total of around 47,000 headquarters, according to the Public Policy Institute of California.
“There is some indication of an uptick in headquarters leaving California, but it is really small in comparison to other firm trends,” said Sarah E. Bohn, vice president of the Public Policy Institute of California. “The rate of leaving is slightly higher among bigger firms.”
Bohn, in a recent report, cautioned that focusing solely on relocations overlooks the range of positive and negative forces driving headquarters activity and can misrepresent businesses’ desire and ability to operate headquarters in California and the broader impact on jobs.
Behind Texas and California was New York, home to 53 Fortune 500 companies this year. The fourth spot was tied between Illinois and Ohio, with 29 companies each.
Amazon was the top company on the list, ending Walmart’s 13-year reign at the top of the annual Fortune 500 companies list. Amazon’s 2025 revenue was $716.9 billion, compared with Walmart’s $713.2 billion.
Seattle-headquartered Amazon joined Exxon Mobil, General Motors, and Walmart as the only four companies to have ever held the top position since Fortune began publishing the data in 1955.
Together, the 500 companies on the list roped in $21 trillion in revenue and $2.1 trillion in profits last year, employing 30.5 million people worldwide.
Business
‘Moana’ debuted just 10 years ago. Why Disney is remaking it as a live-action movie
In 2016, Walt Disney Co.’s “Moana” became a box office hit, captivating audiences with catchy earworms from Lin-Manuel Miranda and a spunky young heroine who rejected the label of princess.
Now, just 10 years later, it’s the latest Disney animated film to be given the live-action treatment.
Burbank-based Disney has long reached into its vault in search of animated classics to redo in a live-action format. But a decade is the shortest time between one of the company’s original animated movies and the reimagined film. (2025’s “Lilo & Stitch,” which originally debuted in 2002, is the next closest with a gap of 23 years.)
Why go back to “Moana” so soon? The Polynesian wayfarer is extremely popular.
The 2016 animated film grossed more than $643 million at the global box office, then spawned a 2024 sequel that made more than $1 billion worldwide. The original is the most-watched movie in Disney+ history with more than 1.5 billion hours of viewing.
“Every once in a while in Hollywood, we make a film that is more than a film,” actor Dwayne Johnson, who reprises his role as the demigod Maui, said onstage during the movie’s premiere Tuesday at the Hollywood Bowl after a Polynesian dance performance. “I think you could feel it already tonight, with our culture and with what we have represented. But also not only our Polynesian culture … it’s also a shared culture around the world.”
The latest “Moana,” out this weekend, will join a cadre of family films at the multiplex.
That includes Disney and Pixar’s “Toy Story 5,” which has now racked up more than $774 million worldwide, and Universal Pictures and Illumination’s “Minions & Monsters,” which debuted domestically last week to a softer-than-expected opening of $62 million for the five-day Fourth of July holiday weekend.
The weaker haul for “Minions & Monsters” has led to questions about whether there are too many family films in theaters, which could affect the reception for the latest iteration of “Moana.” But as the last of this summer’s trio of major animated films, the runway could be clear for the film to build steam.
“I don’t think two movies make saturation,” said Andrew Cripps, head of theatrical distribution for Walt Disney Studios. “There’s a huge fanbase for the ‘Moana’ franchise.”
But with two “Moana” movies in the last decade, will audiences flock to another film? Analysts are expecting an opening weekend haul of $75 million, though studio estimates are closer to $60 million to $65 million. The film’s production budget is about $250 million.
“When you look at these massive movies that were just incredible — ‘The Lion King,’ ‘Aladdin,’ ‘Beauty and the Beast’ — they were brought back after years and years,” said David A. Gross, who writes the industry newsletter FranchiseRe. “I think there’s an argument that says absence makes the heart grow fonder with some of these. We’ll see.”
Early reviews of the film have been mixed, and “Moana” has so far notched a 37% rating on aggregator Rotten Tomatoes. The movie is a nearly frame-by-frame re-creation of the original.
Disney’s live-action remakes have largely been box-office boons for the company, with a few exceptions.
In the last 16 years, five films have grossed more than $1 billion globally, including 2017’s “Beauty and the Beast” and 2019’s “The Lion King” and “Aladdin.” (Other live-action spin-offs based on classic animated movies, such as 2024’s “Mufasa: The Lion King” and 2014’s “Maleficent,” also had solid performances.)
“It goes back to the original [intellectual property] of these movies,” Cripps said of the importance of live-action films for Disney’s slate. “People grow up with it, they become fans of it, they live with it. When you’ve got IP that resonates so well literally around the world with fans, I just think it’s a clever extension.”
There have been some notable misfires, including last year’s “Snow White,” which cratered at the box office amid a myriad of controversies, including racist backlash to the casting of Rachel Zegler, who is of Colombian descent, as the titular princess, its depiction of little people and its lead actors’ views on the Israel-Hamas war.
In general, live-action retellings have also typically performed well overseas — a marketplace that isn’t always reliable these days.
Across 13 recent live-action films from Disney and other studios, all made more than 60% of their global box office revenue in international markets, Gross said.
By comparison, films across all genres typically bring in about half of their revenue overseas, he said.
“When these movies connect,” Gross said, “they work everywhere.”
Business
Meta discontinues Instagram feature on new AI image generation tool after Hollywood backlash
A new tool that let people take publicly posted Instagram photos and use AI to generate new images from them drew such a big backlash in Hollywood that Meta has discontinued one of the features.
Instagram’s parent company, Meta, on Tuesday rolled out the new AI tool, called Muse Image, which makes it easy to “turn your ideas into high-quality visuals you can download and share anywhere.”
In a promotional video, Meta showed examples like adding a friend into a band photo.
But the tool came under fire from talent agencies, managers and union officials. They noted that many Instagram accounts were opted in by default, allowing users to manipulate the image and likeness of celebrities without their consent.
“I just think it’s wrong again to expect people to opt themselves out of something that literally has been proven to be able to create harm,” said Kyle Hjelmeseth, chief executive of Los Angeles-based influencer talent management firm G&B.
By Friday, Meta said a feature on Muse Image that helps pull photos from public Instagram accounts was no longer available.
“Earlier this week, we announced that one way for people to generate images in Meta AI is by @-mentioning public Instagram accounts that they want to reference,” Meta said in a blog post. “Our intent was to provide a useful creative tool and to give people control over whether their public content could be referenced in this way. We’ve heard the feedback that this feature missed the mark, so it’s no longer available.”
Creative Artists Agency, which raised concerns to Meta on behalf of its clients, commended the tech company for its swift decision.
“Putting individual rights and consent at the forefront is essential to building responsible technology,” the Century City-based talent agency said in a statement. “We look forward to ongoing conversations to ensure creators stay protected as technology evolves.”
Hollywood has long been wary of AI, after a string of deepfakes — videos or images depicting celebrities doing or saying things they never authorized. Jamie Lee Curtis and others have appeared in ads for products they never endorsed. Last year, OpenAI’s Sora 2 video tool drew outrage in Hollywood after users conjured up dead celebrities without their estates’ consent. OpenAI later said it would give rights holders more granular controls.
After Meta rolled out its new tool, there was immediate backlash from Hollywood.
“Anything other than a clear and conspicuous OPT-IN for these types of uses of Instagram users’ images is unacceptable, and an utter miscalculation of public sentiment regarding the obvious dangers and harms inherent in such use,” performers union SAG-AFTRA said in a statement.
United Talent Agency was also critical of Meta, saying it demands opt-in for the use of likeness, image and intellectual property of its clients on any platform.
“The use of such property without OPT-IN consent, credit and compensation is exploitation, not innovation,” the Beverly Hills-based talent agency said.
Meta’s initial response on Wednesday was that users can choose to opt out of having their photos used by Muse Image by changing their settings.
“We built Muse Image with strong controls and safety guardrails from day one,” Meta said in a statement. “Private accounts and those belonging to users under 18 are automatically excluded and adult users with public accounts can opt out with just a couple clicks. We will take action against any content that violates our Community Standards.”
Two days later, Meta removed a key feature from Muse Image, saying it received feedback that it “missed the mark.”
The launch fits a familiar Silicon Valley pattern — ship products first, ask for forgiveness later.
“They leverage their scale to make it easy to use the tools as well as to scale out the content that is available,” said Mickey Maher, chief business officer at Vermillio, which tracks people’s digital likenesses and intellectual property. “It’s not unique to this Meta product.”
Others said opt-out should be the default.
“This dark pattern of AI overreach, where essentially it’s a free-for-all when it comes to your content, information, is something that nobody actually wants,” said Lori Fena, former chair and executive director of the Electronic Frontier Foundation and co-founder of New York-based Personal Digital Spaces. “What we need in this new AI ecosystem is the ability to create trust and to have some sort of understanding and authenticity, and this does exactly the opposite.”
Business
Legendary Television City may be be sold in further blow to Hollywood
Television City, one of the most famous studios in the entertainment industry where generations of TV shows have been created, is expected to hit the market again as its owner grapples with debt.
It’s the latest sign of distress in Hollywood as the film and TV industry struggles from a sharp falloff in production activity across Southern California.
Television City’s owner, Hackman Capital Partners, is already in the process of selling the historic Radford Studio Center, which gave L.A.’s Studio City neighborhood its name. Hackman defaulted on a $1.1-billion mortgage in January and investment bank Goldman Sachs took over the property, which is now escrow for a sale to Netflix.
The sprawling Television City property is one of the most desirable locations in Los Angeles, sharing fences with the Original Farmers Market and the luxury Grove outdoor shopping center, each of which attracts millions of visitors every year.
If the studio at Beverly Boulevard and Fairfax Avenue where “American Idol,” “All in the Family” and scores of other shows were filmed becomes available as expected, the owners of the Grove and the Farmers Market would be among the likely contenders for the property for potential expansion of their businesses, said sources familiar with the matter who were not authorized to comment.
Grove owner Rick Caruso was among the bidders for Television City, formerly known as CBS Television City, last time it was on the market and could emerge as a possible bidder.
The highest bid when broadcaster CBS sold the studio in 2019 came from Hackman Capital Partners, an international movie studio operator and commercial property landlord that paid $750 million for the 25-acre site that is near Hollywood, Beverly Hills and and the Sunset Strip.
Hackman Capital’s plan to recoup its investment included continuing to operate Television City as a studio for rent while adding new revenue-generating features.
Last year the city approved Hackman Capital’s $1-billion plan to add 980,000 square feet of offices, sound stages, production facilities and retail space.
The original studio designed by famed Los Angeles architect William Pereira erected in 1952 has city landmark protections, but newer structures on the property do not and there are acres of surface parking that could be converted to other uses.
Both Caruso and Farmers Market owners A.F. Gilmore have sued to limit the planned expansion of the studio, calling it a “massively scaled” development that “would overwhelm, disrupt, and forever transform the community.”
The debate over the development has played out amid a serious downturn in the region’s entertainment industry, with studios shifting film and television production to Georgia, New Mexico and other out-of-state locations.
L.A.’s entertainment industry also suffered a series of blows including the COVID-19 shutdown, strikes by writers and directors in 2023 and cutbacks at studios that reduced demand for sound stages.
A group of Hackman Capital’s lenders led by Deutsche Bank filed a notice of default last month, saying they’re owed more than $357 million. Hackman Capital is still trying to renegotiate its debt.
“The studio market is evolving, and the financing environment for studio assets remains complex,” Chief Executive Michael Hackman said in a statement. “We are engaged in active discussions with our lending partners and are carefully evaluating all of the alternatives.”
A person familiar with the process but not authorized to speak about it publicly said Hackman Capital will be hard-pressed to pay its debt in light of challenges facing the industry. The notice of default is “the baby step to put Television City in play” for new buyers, the source said, “and it is in play.”
Already in play is Manhattan Beach Studios, another Hackman Capital property encumbered by a $240-million loan from Deutsche Bank that the lender is in the process of selling. A buyer could foreclose on the property and potentially change its use to advanced manufacturing such as aerospace or defense, which is in high demand in Southern California.
Brokerage Cushman & Wakefield, which is managing the sale, emphasized in marketing materials that the 22-acre site has “significant available power capacity” and “offers flexible uses” on “some of the most irreplaceable underlying land in the South Bay.”
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