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With new bids, Warner Bros. Discovery looks to narrow the auction field

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With new bids, Warner Bros. Discovery looks to narrow the auction field

Warner Bros. Discovery’s winnowing of bidders is expected to accelerate this week.

Monday marks the deadline for a second round of proposals, which Warner’s board members anticipate will bring sweetened bids from the three rivals vying for the prize. Comcast, Paramount and Netflix each submitted initial nonbinding offers last month, forming the auction’s floor.

Warner bankers privately have signaled to the interested parties that this round may not be the final flex, but they do anticipate that Monday’s bids will help them zero in on a preferred merger partner, according to people close to the process who were not authorized to comment.

Warner Bros. Discovery hopes to make its pick before the winter holidays begin.

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“The global media industry stands at the precipice of historic transformation,” Bank of America media analyst Jessica Reif Ehrlich and three colleagues wrote in a Monday research report.

The sale of Warner Bros. would represent Hollywood’s biggest consolidation since a buying spree that began 30 years ago with Walt Disney Co.’s purchase of Capital Cities, which owned ABC and ESPN. That era was capped by Time Warner’s ill-fated sale in the early 2000s to dial-up internet service provider AOL — a disastrous union that plundered the value of Warner’s prestigious properties. It took more than a decade for the company to recover.

Since then, Netflix, Amazon and Apple have swarmed the field, ushering in a streaming revolution that has dramatically altered consumer behavior, leaving the entertainment industry’s financial foundation — bulky cable TV bundles and blockbuster theatrical releases — on shaky legs.

Warner’s current bidding war “reflects the economic reality … that mid-sized legacy media studios/companies can no longer compete with the unit economics of Netflix or the ecosystem of large tech players such as Amazon,” the Bank of America analysts wrote.

They said the Larry Ellison family’s Paramount and Comcast’s NBCUniversal may feel the need to bulk up, prompting both to claw for Warner’s assets, which include the Warner Bros. film and television studios in Burbank, premium channel HBO and streaming service HBO Max.

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Representatives of Warner, Paramount, Comcast and Netflix declined to comment.

Paramount is seen as most likely to prevail, given the Ellison family’s vast wealth and political connections.

President Trump considers Larry Ellison among his friends, which could ensure a smooth regulatory review process with the Justice Department. The president has indicated he wants to see Ellison control CBS — currently under the Paramount-Skydance umbrella — and CNN, which is owned by Warner Bros. Discovery.

Paramount offers the most efficient takeover as it has expressed interest in buying all of Warner, including its cable channels, which include TBS, TNT, HGTV, Food Network and Animal Planet. Tech scion and Paramount Chairman David Ellison informally kicked off the bidding in September, making three offers by mid-October.

But Warner’s board rejected all three proposals, considering them to be too low. The company then opened the process to other bidders, allowing Comcast and Netflix to join the field.

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Ellison recently visited oil-rich Middle Eastern countries, holding preliminary talks with sovereign-wealth funds about potentially investing should Paramount win the Warner auction, according to two knowledgeable sources.

Warner Bros. Discovery shares inched up less than 1% to $23.87 on Monday.

Some analysts expect a surge from Comcast, which is controlled by Philadelphia cable mogul Brian Roberts.

Warner Bros. Discovery Chief Executive David Zaslav prefers Comcast over Paramount, knowledgeable people say.

Through its ownership of the European broadcaster Sky, Comcast has widened its international footprint.

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But Comcast carries significant debt and its stock has been stalled for years.

Comcast and Netflix have each expressed interest in buying only the studios, HBO and the streaming service.

Neither Comcast nor Netflix is interested in Warner’s linear cable channels. Comcast is planning to jettison its own portfolio of cable networks, including USA Network, CNBC, MS NOW (formerly MSNBC) and Golf Channel, in a spin-off that should finalize in January. The cable channels will form an entity called Versant.

“The market is witnessing the endgame of the cable TV era,” the Bank of America analysts wrote. “The Warner Bros. studio is the crown jewel, with [intellectual property] ranging from Harry Potter to DC Comics to Game of Thrones (and much more).”

Buying Warner Bros. and HBO would boost NBCUniversal’s television production capabilities and its lagging Peacock streaming service, which has struggled to mint scripted streaming hits.

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Comcast executives also have an eye on Warner’s beloved franchises that include Superman and other DC Comics, “Lord of the Rings” and “The Matrix,” which could provide more characters for its growing Universal Studios theme parks.

Netflix also sees great value in the Warner Bros. franchises. In addition, Warner Bros. Television has long been among the industry’s most successful show producers, giving birth to “The Big Bang Theory,” “Ted Lasso” and “The Pitt.”

Scooping up Warner Bros. would also give Netflix Co-Chief Executive Ted Sarandos a legendary movie studio lot — something Netflix currently lacks. The streamer’s L.A. offices sit on a relatively small tract overlooking the 101 Freeway.

Any of the combinations would prompt layoffs in the media industry, which is already reeling from a TV and film production slowdown and the elimination of thousands of workers over the last two years.

Paramount has shed more than 2,600 workers in recent months. The Ellison family and RedBird Capital Partners consolidated their purchase of Paramount in August.

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Warner Bros. Discovery also has purged staff as it has struggled under a colossal debt burden brought on by its last merger — Discovery’s $43-billion takeover of WarnerMedia from AT&T in 2022.

Warner still carries about $34 billion of debt.

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Video: Why Your Paycheck Feels Smaller

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Video: Why Your Paycheck Feels Smaller

new video loaded: Why Your Paycheck Feels Smaller

Ben Casselman, our chief economics correspondent, explains why wages are not keeping up with inflation and what that means for American workers and the economy.

By Ben Casselman, Nour Idriss, Sutton Raphael and Stephanie Swart

April 18, 2026

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Civil case against Alec Baldwin, ‘Rust’ movie producers advances toward a trial

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Civil case against Alec Baldwin, ‘Rust’ movie producers advances toward a trial

Nearly two years after actor Alec Baldwin was cleared of criminal charges in the “Rust” movie shooting death, a long simmering civil negligence case is inching toward a trial this fall.

On Friday, a Los Angeles Superior Court judge denied a summary judgment motion requested by the film producers Rust Movie Productions LLC, as well as actor-producer Baldwin and his firm El Dorado Pictures to dismiss the case.

During a hearing, Superior Court Judge Maurice Leiter set an Oct. 12 trial date.

The negligence suit was brought more than four years ago by Serge Svetnoy, who served as the chief lighting technician on the problem-plagued western film. Svetnoy was close friends with cinematographer Halyna Hutchins and held her in his arms as she lay dying on the floor of the New Mexico movie set. Baldwin’s firearm had discharged, launching a .45 caliber bullet, which struck and killed her.

The Bonanza Creek Ranch in Santa Fe, N.M. in 2021.

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(Jae C. Hong / Associated Press)

Svetnoy was the first crew member of the ill-fated western to bring a lawsuit against the producers, alleging they were negligent in Hutchins’ October 2021 death. He maintains he has suffered trauma in the years since. In addition to negligence, his lawsuit also accuses the producers of intentional infliction of emotional distress.

Prosecutors dropped criminal charges against Baldwin, who has long maintained he was not responsible for Hutchins’ death.

“We are pleased with the Court’s decision denying the motions for summary judgment filed by Rust Movie Productions and Mr. Baldwin,” lawyers Gary Dordick and John Upton, who represent Svetnoy, said in a statement following the hearing. “He looks forward to finally having his day in court on this long-pending matter.”

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The judge denied the defendants’ request to dismiss the negligence, emotional distress and punitive damages claims. One count directed at Baldwin, alleging assault, was dropped.

Svetnoy has said the bullet whizzed past his head and “narrowly missed him,” according to the gaffer’s suit.

Attorneys representing Baldwin and the producers were not immediately available for comment.

Svetnoy and Hutchins had been friends for more than five years and worked together on nine film productions. Both were immigrants from Ukraine, and they spent holidays together with their families.

On Oct. 21, 2021, he was helping prepare for an afternoon of filming in a wooden church on Bonanza Creek Ranch. Hutchins was conversing with Baldwin to set up a camera angle that Hutchins wanted to depict: a close-up image of the barrel of Baldwin’s revolver.

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The day had been chaotic because Hutchins’ union camera crew had walked off the set to protest the lack of nearby housing and previous alleged safety violations with the firearms on the set.

Instead of postponing filming to resolve the labor dispute, producers pushed forward, crew members alleged.

New Mexico prosecutors prevailed in a criminal case against the armorer, Hannah Gutierrez, in March 2024. She served more than a year in a state women’s prison for her involuntary manslaughter conviction before being released last year.

Baldwin faced a similar charge, but the case against him unraveled spectacularly.

On the second day of his July 2024 trial, his criminal defense attorneys — Luke Nikas and Alex Spiro — presented evidence that prosecutors and sheriff’s deputies withheld evidence that may have helped his defense . The judge was furious, setting Baldwin free.

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Variety first reported on Friday’s court action.

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California’s gas prices push Uber and Lyft drivers off the road

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California’s gas prices push Uber and Lyft drivers off the road

The highest gas prices in the country are making it tougher for some gig drivers to make a living.

Gas prices have shot up amid the war in the Middle East. On average, California gas prices are the most expensive in the United States, according to data from the American Automobile Assn. The average price of regular gas in California is almost $6. The national average is a little above $4.

While Uber and Lyft drivers have concocted clever ways to cut gas consumption, they say that without some relief they will be forced to leave the ride-hailing business.

John Mejia was already struggling to make money as a part-time Lyft driver when soaring gas prices made his side hustle even harder.

“Unfortunately, it’s the economics of paying less to drivers and gas prices,” he said. “It actually is pulling people out of the business.”

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Guests at The Westin St. Francis hotel get into an Uber.

(Jess Lynn Goss / For The Times)

Gig work offers drivers the freedom to work for themselves and more flexibility, but being independent contractors also means they must shoulder unexpected costs.

Ride-sharing companies say they’re trying to help, but drivers say the gas relief comes with caveats. For now, drivers say they’re being pickier about what rides they accept, cutting hours and are looking at other ways to make money.

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Mejia, who started driving for Lyft more than a decade ago, said in his early days, he would sometimes make $400 in three hours. Now it takes 12 hours to rake in $200.

The San Francisco Bay Area consultant is an active member of the California Gig Workers Union, so he knows he isn’t alone. California has more than 800,000 gig rideshare drivers, according to the group, which is affiliated with the Service Employees International Union.

On social media sites such as Reddit and Facebook, gig workers have posted about how the higher gas prices are eating into their earnings. Among the tricks they are suggesting: reducing the number of times the ignition is turned on or off, avoiding traffic, working in specific neighborhoods and at times with high demand and switching to electric vehicles.

Gig drivers usually have only seconds to decide whether to accept a ride on the app, but they have become more strategic about which rides and deliveries they accept.

That means they are more likely to sit back in their cars and wait for higher fares for quick pick-up and drop-off.

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“I highly recommend the ‘decline and recline’ strategy, rejecting unprofitable rides until a better one appears,” wrote Sergio Avedian, a driver, in the popular blog the Rideshare Guy.

Pedestrians cross the street in front of a Lyft and Uber driver.

Pedestrians cross the street in front of a Lyft and Uber driver on Wednesday. High gas prices have made it hard for gig drivers to make a living, cutting into their profits.

(Jess Lynn Goss / For The Times)

Uber, Lyft and other companies have unveiled several ways to help drivers save on gas.

Uber said drivers can get up to 15% cash back through May 26 with the Uber Pro card, a business debit Mastercard for drivers and couriers. Based on a worker’s tier, they can get up to $1 off per gallon of gas through Upside — an app that offers cash rewards — and up to 21 cents off per gallon of gas with Shell Fuel Rewards. The company also offers incentives for drivers who want to switch to electric vehicles.

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“We know the price of gas is top of mind for many rideshare and delivery drivers across the country right now,” Uber said in a blog post about its gas savings efforts.

Lyft also said it’s expanding gas relief through May 26 because the company knows that the extra cost “hits hardest for drivers who depend on driving for their income.”

The company is offering more cash back, depending on the driver’s tier, for drivers who use a Lyft Direct business debit card to pay for gas at eligible gas stations. They can get an additional 14 cents per gallon off through Upside.

Drivers say the fine print on the offers dictates which card they use and where they fill up gas, making it difficult for them to save money.

“If I do the math, it’s ridiculous,” Mejia said. “They’re offering us nothing.”

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Uber declined to comment, but pointed to its blog post about the gas relief efforts. Lyft also referenced the blog post and said “the gas savings were structured through rewards to maximize stackable opportunities.”

Guests at The Westin St. Francis hotel get into an Uber.

Guests at The Westin St. Francis hotel get into an Uber.

(Jess Lynn Goss / For The Times)

Gig workers have struggled with rising gas prices in the past.

In 2022, Lyft and Uber temporarily added a surcharge to their fares amid record-high gas prices following Russia’s invasion of Ukraine. This year, Uber is adding a fuel charge to its fares in Australia for roughly two months to offset the high cost of gas for drivers. Lyft said it hasn’t added a fuel charge in the U.S. or elsewhere.

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Margarita Penalosa, who drives full time for Uber and Lyft in Los Angeles, started as a rideshare driver in 2017. Back then, gas was cheaper. She would easily hit her goal of making $300 in eight hours. Now she’s making just $250 after working as much as 14 hours.

Gas prices, she said, used to be less than $3 per gallon. Now some gas stations are charging more than $8 per gallon.

“Take out the gas. Take out the mileage from my car and maintenance. How much [do] I really make? Probably I get $11 for an hour,” she said.

Jonathan Tipton Meyers wants to spend fewer hours as a rideshare driver.

He already juggles multiple gigs even while driving for Uber and Lyft in Los Angeles. He’s a mobile notary and loan signing agent, a writer and performer.

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Driving is “a very challenging, full-time job,” he said. “It’s very taxing and, of course, wages were just continually decreasing.”

A man stands for a portrait in a white button up shirt

John Mejia, a longtime Lyft and Uber driver, poses for a portrait before attending a meeting about unionizing gig drivers.

(Jess Lynn Goss / For The Times)

Even if oil continues to flow through the Strait of Hormuz, which Iran reopened Friday, it could take a while for gas prices to come down to earth, said Mark Zandi, the chief economist at Moody’s Analytics.

“There’s an old adage that prices rise like a rocket and fall like a feather,” he said. “I think that’ll apply.”

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In the meantime, it will be survival of the fittest drivers. If enough of them decide to leave the apps, the ride-hailing companies could be forced to raise fares further to attract some back.

“Those who approach rideshare driving strategically, tracking expenses, choosing trips carefully, and optimizing efficiency are far more likely to weather periods of high gas prices,” wrote Avedian in the Rideshare Guy blog. “For everyone else, a spike at the pump can quickly turn rideshare driving from a side hustle into a money-losing venture.”

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