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Warner Bros. Discovery reports a loss as sale process heats up

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Warner Bros. Discovery reports a loss as sale process heats up

Warner Bros. Discovery reported a $148 million loss in the third quarter, hitting a sour note as the company began fielding interest from would-be buyers as Hollywood braces for a transforming deal.

Earnings for the entertainment company that includes HBO, CNN and the Warner Bros. film and TV studios fell short of analyst expectations. A year ago, the company reported profit of $135 million for the third quarter.

Revenue of $9.05 billion declined 6% from the year-ago period. The company swung to a loss of 6 cents a share, compared to last year’s earnings of 5 cents a share.

Still, Chief Executive David Zaslav spent much of Thursday’s call with analysts touting his company’s underlying strengths — while avoided giving details about the company’s sale.

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“It’s fair to say that we have an active process underway,” Zaslav said.

Warner Bros. Discovery on Thursday reiterated it is forging ahead with previously announced plans to split into two separate entities by next spring. However, the Warner board acknowledged last month that it was also entertaining offers for the entire company — or its parts — after David Ellison’s Paramount expressed its interest with formal bids.

Paramount has made three offers, including a $58 billion in cash and stock for all of Warner Bros. Discovery. That bid would pay Warner stockholders $23.50 a share.

The Ellison family appears determined to win one of Hollywood’s most storied entertainment companies to pair with Paramount, which the Ellisons and RedBird Capital Partners acquired in August.

But Warner Bros. Discovery’s board, including Zaslav, voted unanimously to reject Paramount’s offers and instead opened the auction to other bidders, which is expected to lead to the firm changing hands for the third time in a decade.

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Board members are betting the company, which has shown flickers of a turnaround, is worth more than the offers on the table. Despite its rocky third-quarter results, Warner’s stock held its ground in early morning trading at around $22.60 a share.

“Overall we are very bullish,” Zaslav said of the company’s business prospects.

“When you look at our films like ‘Superman,’ ‘Weapons’ and ‘One Battle After Another,’ the global reach of HBO Max and the diversity of our network’s offerings, we’ve managed to bring the best, most treasured traditions of Warner Bros. forward into a new era of entertainment and [a] new media landscape,” he said.

But the company’s results underscored its business challenges.

The studio witnessed a major decline in advertising revenue in the third quarter, reporting $1.41 billion, down 16% from the previous year, which executives attributed to declines in the audience for its domestic linear channels, including CNN, TNT and TLC.

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Distribution revenue also took a hit, as the company reported sales of $4.7 billion, a decrease of 4% compared to last year.

Studio revenue increased 24% to $3.3 billion, powered by the success of DC Studios’ “Superman,” horror flick “Weapons” and the latest installment of “The Conjuring.” But even those box office wins couldn’t totally offset shortfalls in other areas of its content business.

Last year, the company was able to sub-license its rights to broadcast the Olympics in Europe, which pushed content revenue to $2.72 billion. But this year, revenue was down 3% to $2.65 billion.

Burbank-based Warner Bros. has had a string of success in theaters, with nine films opening at the top spot globally at the box office. The studio recently surpassed $4 billion in worldwide box office revenue, making it the first studio to do so this year. Warner Bros. last achieved that milestone in 2019.

Zaslav would like to continue with Warner’s break-up plans, which were announced last June.

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The move would allow him to stay on to manage a smaller Hollywood-focused entity made up of the Warner Bros. studios, HBO, streaming service HBO Max and the company’s vast library, which includes Harry Potter movies and award-winning television shows such as “The Pitt.”

The company’s large portfolio of cable channels, including HGTV, Food Network and Cartoon Network, would become Discovery Global and operate independently.

Beyond Paramount, Philadelphia-based Comcast, Netflix and Amazon have expressed interest in considering buying parts of the company.

The company said its third quarter loss of $148 million was the result of a $1.3 billion expense, including restructuring costs.

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Movie Reviews

‘Supergirl’ review: DC Studios serves up a second less-than-super movie

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‘Supergirl’ review: DC Studios serves up a second less-than-super movie

James Gunn isn’t exactly crushing it.

Named co-chairman and chief executive officer of the newly formed DC Studios in 2022, the “Guardians of the Galaxy” filmmaker wrote and directed the division of Warner Bros. Discovery’s largely disappointing “Superman,” released last year.

This week, DC Studios’ second big-screen affair, “Supergirl,” lands in theaters with similarly underwhelming results.

‘Superman’ review: James Gunn gets DCU off to rocky, overstuffed start

Starring Milly Alcock as the movie’s namesake Kryptonian heroine — who also goes by Kara Zor-El and is the cousin of David Corenswet’s Superman/Clark Kent/Kal-El — “Supergirl” isn’t distractingly zany the way its 2025 sister film was. Instead, it’s tonally boring, a chore of a movie chock full of thinly drawn characters and increasingly bombastic and violent.

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To be clear, Gunn isn’t at the helm for “Supergirl.” Instead, it’s the typically dependable Craig Gillespie (“I, Tonya,” “Cruella”), working from a script by Ana Nogueira, making her less-than-impressive feature-writing debut.

This planet-hopping adventure in the new DC Universe isn’t a complete space wreck, however, thanks largely to the spunky performance by Aussie Alcock, best known for portraying the younger Rhaenyra Targaryen in the early episodes of HBO’s “House of the Dragon.”

When we catch up with Kara, she’s basically as we left her late in “Superman”: a super-sized mess. She’s out with her beloved, rambunctious dog, Krypto — the peppy and powerful pup having already been a major player in “Superman” — and enjoying a 23rd-birthday pub crawl among planets under a red sun. (Quick reminder: Supergirl, like Superman, draws her incredible powers from a yellow sun, like Earth’s, so she’s at least vaguely normal under a red sun and, importantly, can become intoxicated. The color of suns is a major factor throughout “Supergirl,” and it’s the movie’s most inventive narrative element.)

It is on such a world where a drunken Kara encounters 13-year-old Ruthye Marye Knoll of the Danastia Clan (Eve Ridley), whose family has just been brutally slain by the ruthless Krem of the Yellow Hills (Matthias Schoenaerts). Understandably, Ruthye wants revenge against Krem — leader of the Brigants, a band of male pirates and traffickers — and can think of little else.

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She’s offering anyone who will help a sword made by her family of skilled weapons makers. The beyond-buzzed Kara isn’t interested, but she gets involved when a scumbag type tries to take the sword. She continues to do her best to fend off Ruthye’s subsequent pleas for assistance in her quest to kill Krem, but when the baddie — in the process of stealing her floating RV of a spaceship — shoots a charging Krypto with a poison dart, Kara has designs on punishing him, too. In fact, she needs to retrieve the specific antidote Krem carries with him to save her four-legged bud.

Milly Alcock, left, as Kara Zor-El, and Eve Ridley, as Ruthye Marye Knoll of the Danastia Clan, appear in a scene from “Supergirl.” (Courtesy of Warner Bros. Pictures)

And so the gals are off to other worlds, initially traveling via the space equivalent of a beat-up Greyhound bus, on which they run into a trio of pillaging Sklarian Raiders. The sequence in which Kara retrieves stolen possessions and extracts information from them is as zany as “Supergirl” gets.

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Culture Clash knows the end is near. It wants to go out with a bang

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Culture Clash knows the end is near. It wants to go out with a bang

Richard Montoya of Culture Clash doesn’t mince words when it comes to politics, current events or the state of mainstream Hollywood. But he does sugarcoat his technological limitations as a 67-year-old comic in the dreaded age of video calls with a punchy Chicano twist.

“I’m a low-tech Aztec,” he writes via email when requesting a Zoom link to our Monday interview.

Culture Clash — which includes members Montoya, Ric Salinas and Herbert Sigüenza — arrived on the scene as a guerrilla sketch theater group from the San Francisco Mission District in 1984. By that time, the Chicano movement had reached its peak, thanks to the United Farm Workers labor movement, as well as student activist organizations like Movimiento Estudiantil Chicano de Aztlán (MEChA), which advocated for Chicano unity, political empowerment and educational access.

Luis Valdez, founder of El Teatro Campesino — who began putting on social justice-oriented plays for the striking Delano farmworkers in 1965 — backed the slapstick satire troupe, considering the trio “the cutting edge of fresh, new Latino comic genius.”

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Culture Clash stood out in a time when Chicanos became more vocal and visible — and its members challenged an entertainment industry that has historically lacked Latino representation. Between 1993 and 1996, Culture Clash hosted its own self-titled TV show on the syndicated Fox network. The show, which was filmed at the Mayan Theater in downtown Los Angeles, is widely considered the first Latino sketch comedy to air on American television.

Throughout the last four decades, Culture Clash has parodied nearly every prominent Latino figure in history, including Che Guevara, Frida Kahlo, Ritchie Valens, Rita Moreno, Edward James Olmos and others. Its members have mocked hard-shell cholos and gangsters, often by placing them in funny scenarios. For instance, take this clip, in which the trio take on cholo characters and reimagine what it would be like to surf on the Southern California shore.

But they’ve also taken on more serious topics in their classic “Chavez Ravine” play, which looks into one of the darkest chapters in L.A. history: the forceful removal and displacement of families, mostly Mexican, in the 1950s under eminent domain. Recently Montoya attended a live reading adapted by Somos El Teatro, led by Xolo Maridueña, Mariana da Silva and Angel Villalobos at Elysian Park.

“It gives us so much life that people are finding the issues of swindlers, whether it’s gentrification, the taking over of settlements,” says Montoya. “The generational trauma of losing your home in L.A. has never gone away.”

But not every Culture Clash joke or skit has been safe from criticism. Montoya still remembers how a conservative pundit chastised the group for using light humor to discuss the 1992 riots, when LAPD officers were acquitted for using excessive force in the arrest and beating of Rodney King.

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“By looking at it and treating it as dynamite, exploding it and then by bringing some levity and a whole lot of seriousness to the Rodney King matter allows us a moment, a fraction of time to look at the issues a little bit differently,” says Montoya. “That laugh allows us a moment to examine it differently.”

On June 27, Culture Clash will return to Grand Performances, a free summer concert series at California Plaza in downtown L.A., with comedic sketches colored by political and social satire. The show, titled “American Payasos! Culture Clash’s End Times Cabaret” will be co-presented with De Los.

While their 40-year-plus legacy might merit a show reminiscent of old goofball skits — like their early 1989 show “The Mission” that poked fun at the problematic Spanish Franciscan missionary Junipero Serra — this will not be an “oldies but goodies show,” as Montoya put it. “We are highly pissed off about a lot of stuff right now.”

“ We’re thinking a lot about the Mexican American patriarchy, Cesar Chavez, Dolores Huerta and it’s time to address some of these things,” says Montoya. “ We want to look at the service workers of Los Angeles, the people that sell cotton candy in MacArthur Park, the people that sell ice cream in Echo Park and the people working the World Cup.”

For the veteran comic, son of the late Chicano poet Jose Montoya, it is also impossible to ignore the immigration enforcement raids that have rattled Los Angeles communities in recent years.

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“This is a very strange moment for satirists,” says Montoya. “We have a responsibility to use those tools to say what’s going on in our city and country and provide these moments where we can do a little bit closer examination because the people in power aren’t telling us what’s going on.”

In the last five years, Montoya has fiddled around with digital media, creating sporadic videos featuring old clips of the troupe, as well as videos of Latino media, to connect with technologically diverse audiences of all ages. (One example is a video calling on people to get out the vote, that features clips of Speedy Gonzales and honors political figures like Huerta.)

Although Montoya believes Culture Clash is nearing the end of its career, there’s a question lingering inside his mind: What does a graceful exit look like for a group like Culture Clash, which has never been fully integrated into mainstream Hollywood and still left such a profound legacy in the world of Latino entertainment?

The answer to that might still be unknown, but like any Culture Clash project, it will likely be wickedly satirical and punchy. Says Montoya: “We’re ready to go out with a huge, loud bang that can say something against the power structure.”

Culture Clash will take center stage on June 27 at Grand Performances, in partnership with De Los. Also performing is the retro cumbia-quebradita musician É Arenas (bassist of Chicano Batman), the cumbia-fusion, luchador-masked cumbia group La Nueva Ola de Cumbia, as well as DJ Dali.

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Movie Review – In the Hand of Dante (2025)

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Movie Review – In the Hand of Dante (2025)

In the Hand of Dante, 2025.

Directed by Julian Schnabel.
Starring Oscar Isaac, Gal Gadot, Gerard Butler, John Malkovich, Louis Cancelmi, Sabrina Impacciatore, Benjamin Clementine, Martin Scorsese, Al Pacino, Franco Nero, Jason Momoa.

SYNOPSIS:

A handwritten manuscript of Dante Alighieri’s poem “The Divine Comedy” makes its way from a priest to a mob boss in New York City, where it is taken by Nick Tosches after he’s asked to verify its authenticity.

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Outrageously ambitious with an absurd narrative that veers between slick scuzzy fun and philosophically snoozy, the key issue with co-writer/director Julian Schnabel’s excessively long In the Hand of Dante is that it’s more engaging as a dopey early 2000s crime thriller about mobsters employing the services of novelist Nick Tosches (also the writer of the novel the film is based on, inserting himself into it as a fictional character, here played by Oscar Isaac in the adaptation by Schnabel and Louise Kugelberg) and Dante Alighieri specialist to steal the recently unearthed original manuscript of his 14th-century masterwork The Divine Comedy from Italian priests than it does as its other side to that coin, a flashback story about the creation of that story complete with actors portraying secondary characters to eventually get at some points about reincarnation.

This means that the film mostly begins with Oscar Isaac entangled in a web of crime alongside slur-slinging, trigger-finger-happy Louie (in what might be the best performance of Gerard Butler’s career, despite the steep drop in quality in the second half), John Malkovich as a mob boss seeing nothing but dollar signs if they can get a hold of the original manuscript, authenticate it, and sell it on the black market, and even Al Pacino popping up for a scene and stealing it set during Nick’s childhood following a violent incident that is so bonkers readers might not believe it even if I typed it out here, to something close enough to a mess culminating in a confrontation between the excellent Oscar Isaac and the shudderingly bad Gal Gadot and Jason Momoa in important roles, the former a lover placed in danger to the mob by her proximity to Nick, and the latter a greedy killer in a relationship with literary historian Dr. Susanna Pulice (Sabrina Impacciatore).

Martin Scorsese also appears in the 14th-century section (for someone who loves to assert what real cinema is vs cinematic theme park rides, he has now appeared in 3 mediocre-to-terrible movies this year), offering sage-like advice to Dante (also Oscar Isaac) in a hilariously over-the-top beard piece. Much of this is a mental journey, but also has something to do with Pope Boniface VIII (also Gerard Butler) placing the Mark of Cain on Dante following a falling out, the writer’s inability to find inspiration in his current lover Gemma Donati (also Gal Gadot) compared to his first love Beatrice, executed in stark contrast from the much more accessible and palatable modern day crime story. A blunter way to put it is that any time the film shifts to these flashbacks, it’s quite boring and never finds a sense of rhythm, drive, or purpose.

Unquestionably, some of this is by design and baked into other elements of the presentation, which includes flashbacks only receiving color as a means of implying that they were more enriching days for artistic freedom and integrity, compared to the black-and-white 2000s material that further homes in on greed and only financial gain for a manuscript no one even knows how to price if it turns out to be authenticated. Expanding on that thought, there are certainly no qualms to be had with the striking cinematography from Roman Vasyanov.

The other encroaching thought here is that, for as carefully considered as the film looks and as captivating as about half the performances are (we truly do not need to talk anymore about Gal Gadot and Jason Momoa, neither of whom can deliver convincing accents without eliciting laughs), it’s not going anywhere interesting, especially once the mobsters exit the narrative. Technically, they are replaced by a hitman, although a lengthy amount of time is spent watching Nick fly around the world for different aspects of the identification process, sometimes involving technology that even he doesn’t understand and tunes out of. In the novel, there appears to be a greater emphasis on Nick’s inner thoughts about the current state of the art world and on finding flaws in classic works or restrictive prose, which is alluded to here but not interrogated enough to emerge as a compelling element. It’s enough to make one wonder what else was lost in translation from the book.

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The filmmakers seem to think the romantic subplot will sustain intrigue for the second half, but it’s devoid of emotion and comes across as aimless in the 14th-century portion. At a certain point, one simply longs for a more focused movie about mobsters stealing recently discovered historic manuscripts for profit; it’s far more fun and amusing than the rest of the sluggish, artfully tedious In the Hand of Dante. No one here seems to realize that this should be a comedic crime caper, and it works that way until it takes itself far too seriously, with flashbacks that bore rather than provide insight or meaningful context.

Flickering Myth Rating – Film: ★ ★ / Movie: ★ ★ ★

Robert Kojder

https://www.youtube.com/watch?v=embed/playlist

 

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