Business
Paramount outlines plans for Warner Bros. cuts
Many in Hollywood fear Warner Bros. Discovery’s sale will trigger steep job losses — at a time when the industry already has been ravaged by dramatic downsizing and the flight of productions from Los Angeles.
David Ellison‘s Paramount Skydance is seeking to allay some of those concerns by detailing its plans to save $6 billion, including job cuts, should Paramount succeed in its bid to buy the larger Warner Bros. Discovery.
Leaders of the combined company would search for savings by focusing on “duplicative operations across all aspects of the business — specifically back office, finance, corporate, legal, technology, infrastructure and real estate,” Paramount said in documents filed with the Securities & Exchange Commission.
Paramount is locked in an uphill battle to buy the storied studio behind Batman, Harry Potter, Scooby-Doo and “The Big Bang Theory.” The firm’s proposed $108.4-billion deal would include swallowing HBO, HBO Max, CNN, TBS, Food Network and other Warner cable channels.
Warner’s board prefers Netflix’s proposed $82.7-billion deal, and has repeatedly rebuffed the Ellison family’s proposals. That prompted Paramount to turn hostile last month and make its case directly to Warner investors on its website and in regulatory filings.
Shareholders may ultimately decide the winner.
Paramount previously disclosed that it would target $6 billion in synergies. And it has stressed the proposed merger would make Hollywood stronger — not weaker. The firm, however, recently acknowledged that it would shave about 10% from program spending should it succeed in combining Paramount and Warner Bros.
Paramount said the cuts would come from areas other than film and television studio operations.
A film enthusiast and longtime producer, David Ellison has long expressed a desire to grow the combined Paramount Pictures and Warner Bros. slate to more than 30 movies a year. His goal is to keep Paramount Pictures and Warner Bros. stand-alone studios.
This year, Warner Bros. plans to release 17 films. Paramount has said it wants to nearly double its output to 15 movies, which would bring the two-studio total to 32.
“We are very focused on maintaining the creative engines of the combined company,” Paramount said in its marketing materials for investors, which were submitted to the SEC on Monday.
“Our priority is to build a vibrant, healthy business and industry — one that supports Hollywood and creative, benefits consumers, encourages competition, and strengthens the overall job market,” Paramount said.
If the deal goes through, Paramount said that it would become Hollywood’s biggest spender — shelling out about $30 billion a year on programming.
In comparison, Walt Disney Co. has said it plans to spend $24 billion in the current fiscal year.
Paramount also added a dig at Warner management, saying: “We expect to make smarter decisions about licensing across linear networks and streaming.”
Some analysts have wondered whether Paramount would sell one of its most valuable assets — the historic Melrose Avenue movie lot — to raise money to pay down debt that a Warner acquisition would bring.
Paramount is the only major studio to be physically located in Hollywood and its studio lot is one of the company’s crown jewels. That’s where “Sunset Boulevard,” several “Star Trek” movies and parts of “Chinatown” were filmed.
A Paramount spokesperson declined to comment.
Sources close to the company said Paramount would scrutinize the numerous real estate leases in an effort to bring together far-flung teams into a more centralized space.
For example, CBS has much of its administrative offices on Gower in Hollywood, blocks away from the Paramount lot. And HBO maintains its operations in Culver City — miles from Warner’s Burbank lot.
Paramount pushed its deadline to Feb. 20 for Warner investors to tender their shares at $30 a piece.
The tender offer was set to expire last week, but Paramount extended the window after failing to solicit sufficient interest among Warner shareholders.
Some analysts believe Paramount may have to raise its bid to closer to $34 a share to turn heads. Paramount last raised its bid Dec. 4 — hours before the auction closed and Netflix was declared the winner.
Paramount also has filed proxy materials to ask Warner shareholders to reject the Netflix deal at an upcoming stockholder meeting.
Earlier this month, Netflix amended its bid, converting its $27.75-a-share offer to all-cash to defuse some of Paramount’s arguments that it had a stronger bid.
Should Paramount win Warner Bros., it would need to line up $94.65 billion in debt and equity.
Billionaire Larry Ellison has pledged to backstop $40.4 billion for the equity required. Paramount’s proposed financing relies on $24 billion from royal families in Saudi Arabia, Qatar and Abu Dhabi.
The deal would saddle Paramount with more than $60 billion of debt — which Warner board members have argued may be untenable.
“The extraordinary amount of debt financing as well as other terms of the PSKY offer heighten the risk of failure to close,” Warner board members said in a filing earlier this month.
Paramount would also have to absorb Warner’s debt load, which currently tops $30 billion.
Netflix is seeking to buy the Warner Bros. television and movie studios, HBO and HBO Max. It is not interested in Warner’s cable channels, including CNN. Warner wants to spin off its basic cable channels to facilitate the Netflix deal.
Analysts say both deals could face regulatory hurdles.
Business
The tale of L.A.’s iconic hot sauce and how Ozempic is making it even hotter
For 55 years, the family behind Tapatío has refused to even write down the recipe for Los Angeles’ iconic hot sauce, passing its secret formula for success only from lip to ear in closed rooms.
The Saavedra family put the ingredients on paper for the first time earlier this year as they sold the beloved brand to backers who plan to make their salsa picante even bigger beyond California’s borders. It is a weight off the shoulders of Luis Saavedra, the founder’s son and one of the few people who knew the recipe.
“We didn’t want anyone to know what we were using,” he told The Times in an interview at Tapatío’s factory in Vernon. “That always scared my sisters, because what if something happens?”
Demand for hot sauces had taken off for unexpected reasons just as the Saavedras were looking to sell. The millions of people on Ozempic and other powerful weight-loss drugs often have cravings for more flavor. The values of some sauce companies have skyrocketed. Bachan’s, a Japanese barbecue sauce brand, was acquired in February for $400 million.
While the Dallas private investment firm that bought Tapatío, Highlander Partners, wouldn’t share the terms of the deal, the company’s new chairman, Jeff Partridge, said it hopes to capitalize on the growing appetite for more heat to splash on proteins.
“Whether it’s GLP-1 or desire for proteins, Tapatío and hot sauces enhance that experience,” he said. “Consumers are increasingly seeking flavors.”
Red peppers drive Tapatío’s taste, though the company won’t share which exact peppers are used. The thin sauce uses garlic, salt and other spices for a tangy, peppery punch. It has a mild heat that doesn’t linger.
Luis Saavedra, right, former chief executive officer of Tapatío Foods and son of company founder Jose-Luis Saavedra, speaks with Eric Beatty, the current chief executive, at the company’s manufacturing facility on Wednesday.
(Genaro Molina / Los Angeles Times)
The big acquisition is a long way from the brand’s birth in founder Jose-Luis Saavedra’s kitchen more than 50 years ago.
Saavedra, originally from Mexico City, long dreamed of making his way north. He landed in Chicago in his late 20s, working as a Spanish translator. He met his wife and moved to Southern California.
He worked at an aerospace parts manufacturer in Los Angeles. The homemade hot sauce he brought for lunch was a hit with co-workers who asked for more. When he was laid off in the late ’60s during an oil recession, he started selling bottles.
As sales rose, he rented a small space for production in Maywood and it officially became a business in 1971. The whole family pitched in. His son, Luis, remembers twisting on caps and attaching labels to bottles when he was 13.
Bottles are filled with Tapatío hot sauce before being labeled at the Tapatío manufacturing facility on Wednesday. The hot sauce company was recently acquired by Dallas-based private investment firm Highlander Partners.
(Genaro Molina / Los Angeles Times)
Saavedra and his son would drive a van up and down Los Angeles, manually packing and unloading the product to local corner stores. Many of the first bottles were stocked in East Los Angeles stores.
About five years in, the company made enough for Saavedra to quit the two part-time jobs he had picked up to keep the business afloat. Operations remained in Maywood for 14 years before they expanded to a 7,000-square-foot building in Vernon.
In 1996, the company made its boldest bet, splurging on a 30,000-square-foot building.
In the same facility today, the strong aroma of spices tickles visitors’ noses. The precise portioning of the secret ingredients, matching the ratios of the founder’s original formula, happens in a room locked off from employees. The magic mix is then rapidly poured into a long line of empty bottles that march along a conveyor belt like soldiers.
It’s the legacy of the founder, who refused to be deterred by naysayers or obstacles to growth, said Saavedra’s son.
“Let’s go around it,” the younger Saavedra said, quoting his father’s mantra in the face of problems. “Let’s go under. Let’s go above it.”
His father’s stubbornness paid off in court as the company was sued for its name. It was once called Cuervo — his wife’s original last name — and tequila giant Jose Cuervo came after it. Saavedra had already trademarked the name in California, so it got a big payout to give up the name.
Saavedra briefly entertained the name “Charro,” a reference to Mexican cowboys, before landing on Tapatío, a nickname used for people born in Guadalajara, Jalisco, where all three of his children were born. Its logo evolved into a beaming cowboy with bright blue eyes in a wide-brimmed hat.
The Tapatío name was also challenged. Del Monte Foods sued Saavedra in the ’80s, claiming the name was too similar to its brand “Patio.” Saavedra won that case.
The founding father’s hardheadedness could also sometimes cause trouble.
Luis Saavedra, son of company founder Jose-Luis Saavedra, shows the original Tapatío label, left, compared to the current version.
(Genaro Molina / Los Angeles Times)
The younger Saavedra battled with his father in the late ’90s about changing the brand’s label to help it stand out on crowded shelves. The old bottles were largely black and white and looked a little outdated. Eventually, the senior Saavedra gave in. Sales skyrocketed.
Today, Tapatío is shaken over meals around the globe, though its dominance is strongest in California. It has been used in collaborations with other companies to spike mashed potatoes, protein powder, pickles and ramen.
Tacked to a wall at the Vernon factory is an old photo of the dozen people who were there to launch the brand’s new facility 30 years ago. Some of the employees still work there, including Jorge Cuervo, the production supervisor, and Fabian Diaz, who mans the forklift.
Diaz, who moves countless pallets of product, jokes he was born at the factory, having spent almost his entire adult life working for the company.
Under the new ownership, all 25 current employees were retained, and the firm has committed to hiring more.
“They’ve been doing this for a long time,” Luis Saavedra said. “They have a passion for it.”
The family began exploring options for a sale in late 2024, right after the founder, now 97, suffered a stroke.
Jose-Luis Saavedra had remained closely involved in day-to-day operations despite his age, often spending from sun-up to sun-down at the factory.
As he took on all his father used to do as well as his own workload, the younger Saavedra was getting burnt out and started to worry that keeping the company family-owned could be hurting the brand.
“Work was really devouring me,” Luis Saavedra said. “It was a tough decision, very difficult. We cried together as a family, then we said, ‘In the long run, it’s better.’”
“It was a tough decision, very difficult. We cried together as a family, then we said, ‘In the long run, it’s better,’” Luis Saavedra said of the decision to sell the company.
(Genaro Molina / Los Angeles Times)
Once it let potential suitors know the company was in play, the offers poured in. The family considered offers from around 40 companies before choosing Highlander Partners.
In a few years, the company’s new leaders hope to use the growing demand for flavor triggered by weight-loss drugs to bring California’s top sauce to many more markets east of the Rockies, said Eric Beatty, the company’s current chief executive.
“We believe that we’ve got these sector tailwinds behind us,” Beatty said. “It’s going to be a really good story.”
Eric Beatty, current chief executive officer of Tapatío Foods LLC, stands next to boxes of the hot sauce that are ready for shipping at the Tapatío manufacturing facility on Wednesday.
(Genaro Molina / Los Angeles Times)
New leadership has grand plans for the brand, hoping to build more facilities and add new products.
“We’ll always be a California company,” Beatty said. “This will always be the center of the Tapatío universe.”
Meanwhile, the Saavedra family still has a minority stake in the company and will continue to help manage it.
“They are the essence of the brand, and really understand the heartbeat of the brand,” said Partridge, Tapatío’s new chairman. “We certainly want to make sure that they always have a voice.”
Business
Video: How the Iran War Is Affecting Inflation
new video loaded: How the Iran War Is Affecting Inflation

By Ben Casselman, Nour Idriss, Stephanie Swart and Sutton Raphael
April 11, 2026
Business
Man charged with arson after setting fires inside Ontario Mills mall
A man was arrested Friday morning after he set multiple fires inside stores at the Ontario Mills mall, officials said.
Ontario police said they responded to the mall at about 10:30 a.m. after callers reported that a man with a lighter and a backpack was intentionally setting fires.
Officers found the suspect, who they identified as 28-year-old Luis Javier Gallegos Jr. of Rancho Cucamonga.
The police said in a statement that Gallegos did not comply with their requests, and they used force to arrest him.
Both Gallegos and an officer suffered non-life-threatening injuries during the arrest, the police said.
After being treated at a hospital, Gallegos was booked into the West Valley Detention Center and charged with felony arson, the police said.
Police said they are working to identify a motive for the crime and whether there is any connection to the April 7 arson at the Kimberly-Clark warehouse in Ontario.
Prosecutors say the inferno destroyed the 1.2 million square-foot warehouse and the paper products inside, resulting in $500 million in damages.
Chamel Abdulkarim, a Highland resident who worked at the warehouse, is facing both state and federal arson charges for setting the fire.
Abdulkarim, 29, filmed himself setting fire to multiple pallets of paper goods, according to the U.S. attorney’s office for the Central District of California.
In the video, he says, “If you’re not going to pay us enough to [expletive] live or afford to live, at least pay us enough not to do this [expletive].”
Anyone with information about the fires Friday at Ontario Mills Mall is asked to contact the city’s police department at (909) 986-6711.
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