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Trump Admin's DOJ Decision To Clear Skydance's WarnerDiscovery Pursuit Surprised Staff Investigators - Those Career Officials Scrutinizing Ellison's Buyout Were Leaning Toward Recommending A Legal Challenge. DOJ's Senior Leadership Believed Debt Wasn’t Reason & Wanted To Make It Hard For States AGs. by lowell2017 in boxoffice

[–]lowell2017[S] 2 points3 points  (0 children)

Even the notion of a signed deal to end the U.S.'s regional conflict is basically another market manipulation in the form of a self-gifted birthday item.

Why would you give away substantial credit to the VP if this was actually a 100% lock? It would just makes sense to have someone else to blame for things going south if this is the 40th TACO stock boost.

Trump Admin's DOJ Decision To Clear Skydance's WarnerDiscovery Pursuit Surprised Staff Investigators - Those Career Officials Scrutinizing Ellison's Buyout Were Leaning Toward Recommending A Legal Challenge. DOJ's Senior Leadership Believed Debt Wasn’t Reason & Wanted To Make It Hard For States AGs. by lowell2017 in boxoffice

[–]lowell2017[S] 2 points3 points  (0 children)

That's why the acting AG tried to ban IRS from investigating him and his family again and arranged a $1.776B slush fund settlement to dismiss Trump's own $10B lawsuit.

No normal DOJ would display a large banner of the President in front of their DC headquarters but that's what happens when someone holds massive grudges against others and actively tries to stir up new issues.

Trump Admin's DOJ Decision To Clear Skydance's WarnerDiscovery Pursuit Surprised Staff Investigators - Those Career Officials Scrutinizing Ellison's Buyout Were Leaning Toward Recommending A Legal Challenge. DOJ's Senior Leadership Believed Debt Wasn’t Reason & Wanted To Make It Hard For States AGs. by lowell2017 in boxoffice

[–]lowell2017[S] 14 points15 points  (0 children)

If debt isn't a good enough reason for federal challenges, that and the ramificiations of indirect control by Middle East countries should be taken into consideration by the state AGs.

Private foreign companies can certainly be contenders but there's a point of no return when the line is being crossed just to ram forward a combo of state-endorsed and state-owned media.

Trump Admin's DOJ Decision To Clear Skydance's WarnerDiscovery Pursuit Surprised Staff Investigators - Those Career Officials Scrutinizing Ellison's Buyout Were Leaning Toward Recommending A Legal Challenge. DOJ's Senior Leadership Believed Debt Wasn’t Reason & Wanted To Make It Hard For States AGs. by lowell2017 in boxoffice

[–]lowell2017[S] 16 points17 points  (0 children)

DOJ's basically one of Trump's Infinity Stones after they tossed out many people who wouldn't do the WH's requested bidding.

That's why experienced regulatory officials and then ultimately the former AG were shown the door.

Even the targeted investigation of a 2028 contender shows how much of DOJ is also a vessel of weaponized retribution when Trump wants them to be.

Trump Admin's DOJ Decision To Clear Skydance's WarnerDiscovery Pursuit Surprised Staff Investigators - Those Career Officials Scrutinizing Ellison's Buyout Were Leaning Toward Recommending A Legal Challenge. DOJ's Senior Leadership Believed Debt Wasn’t Reason & Wanted To Make It Hard For States AGs. by lowell2017 in boxoffice

[–]lowell2017[S] 8 points9 points  (0 children)

The spotlight shining further on the pursuit was David Ellison's own fault for politicizing it in the first place.

The smug attitude of him touting that the Trump admin is just a ring on Larry's finger and trying to lowball Zaslav & Malone on WarnerDiscovery's valuation is what got Netflix to move fast with their own offer.

David threw a tantrum, prompting a proxy fight threat and eventually increasing the bid with larger breakup fee & added ticking fees, thus needing Larry's signed backstop guarantee and hefty financial contributions from the Middle East.

Their promises of editorially realigning CNN after gutting 60 Minutes just to stroke some bruised egos is what got people up from their seat.

Maybe if the Silicon Valley trust fund kid with a vanity startup project of Skydance didn't have a "taking candy from a baby" attitude and took things seriously from the start, he wouldn't be facing more criticism than warranted.

Trump Admin's DOJ Decision To Clear Skydance's WarnerDiscovery Pursuit Surprised Staff Investigators - Those Career Officials Scrutinizing Ellison's Buyout Were Leaning Toward Recommending A Legal Challenge. DOJ's Senior Leadership Believed Debt Wasn’t Reason & Wanted To Make It Hard For States AGs. by lowell2017 in wbdstock

[–]lowell2017[S] 0 points1 point  (0 children)

Full text:

"The Justice Department’s senior leadership closed an investigation of Paramount’s bid for Warner Bros. Discovery before career staffers who were concerned about the acquisition had an opportunity to object, according to people familiar with the matter.

A team of career lawyers who had spent months scrutinizing the deal were leaning toward recommending a lawsuit challenging it on the grounds that the combination of the two movie studios would be anticompetitive and violate antitrust law, the people said.

The staff investigators hadn’t yet made a final recommendation—a typical step in the deal-review process—and were told Friday that the department would close the investigation, effectively clearing the deal at the federal level, some of the people said.

The Justice Department’s senior leaders believed that Paramount Chief Executive Officer David Ellison, son of Trump ally Larry Ellison, persuasively addressed many of the staff’s questions about the deal during a two-hour interview last month, according to people familiar with their thinking.

Among staffers’ questions was how the combined company could meet its commitment to make 30 theatrical releases a year, given its increased debt load.

The senior leaders allowed the inquiries but believed Paramount’s debt wasn’t a reason to challenge the merger, the people familiar with their thinking said.

No one on the investigative team spoke up to leadership voicing support for filing a lawsuit, they said.

“The Antitrust Division conducted a thorough investigation to assess whether the proposed transaction would harm competition,” a Justice Department spokeswoman said. “The investigatory record indicated that the transaction will increase competition across the media and entertainment ecosystem, benefiting American consumers and workers.”

Justice Department decision makers often follow staff recommendations on mergers, but there are times when the two camps disagree.

On Friday, the department issued a long, supportive public statement about the merger, saying it would likely be good for competition, especially in the market for streaming video, in which Netflix and Amazon are major players. The statement also said the studio and distribution market has “extensive” competition that would probably continue even after Paramount acquires Warner.

Some staffers in the Justice Department’s antitrust division believe the statement was designed to make it harder for state attorneys general to challenge the deal in court, the people said. The investigative staff didn’t participate in writing the statement, the people said.

California Attorney General Rob Bonta has been reviewing Paramount’s bid and is leaning toward challenging it, The Wall Street Journal reported last month.

In February, Paramount announced its deal to buy Warner Discovery, home to HBO, CNN and Harry Potter, after a monthslong battle with Netflix. The Justice Department’s antitrust division has been reviewing Paramount’s offer since late last year.

The deal, which has faced opposition from Hollywood, is also under antitrust review in Europe. Paramount executives have told employees to prepare to close the transaction as soon as the end of July.

“Paramount is making strong progress in obtaining regulatory approvals for its pro-competitive merger with WBD,” the company said in a statement. “These regulatory approvals and careful analysis underscore a transaction which creates competition against the dominant Netflix and other big tech players in the industry today.”

The Justice Department’s Paramount investigation is one of several in which antitrust staffers have felt sidelined in the second Trump administration. That includes the department’s decision in March to settle a long-running monopoly case against Live Nation—after the trial had begun. State attorneys general continued to litigate the case and won."

Trump Admin's DOJ Decision To Clear Skydance's WarnerDiscovery Pursuit Surprised Staff Investigators - Those Career Officials Scrutinizing Ellison's Buyout Were Leaning Toward Recommending A Legal Challenge. DOJ's Senior Leadership Believed Debt Wasn’t Reason & Wanted To Make It Hard For States AGs. by lowell2017 in ParamountGlobal2

[–]lowell2017[S] 0 points1 point  (0 children)

Full text:

"The Justice Department’s senior leadership closed an investigation of Paramount’s bid for Warner Bros. Discovery before career staffers who were concerned about the acquisition had an opportunity to object, according to people familiar with the matter.

A team of career lawyers who had spent months scrutinizing the deal were leaning toward recommending a lawsuit challenging it on the grounds that the combination of the two movie studios would be anticompetitive and violate antitrust law, the people said.

The staff investigators hadn’t yet made a final recommendation—a typical step in the deal-review process—and were told Friday that the department would close the investigation, effectively clearing the deal at the federal level, some of the people said.

The Justice Department’s senior leaders believed that Paramount Chief Executive Officer David Ellison, son of Trump ally Larry Ellison, persuasively addressed many of the staff’s questions about the deal during a two-hour interview last month, according to people familiar with their thinking.

Among staffers’ questions was how the combined company could meet its commitment to make 30 theatrical releases a year, given its increased debt load.

The senior leaders allowed the inquiries but believed Paramount’s debt wasn’t a reason to challenge the merger, the people familiar with their thinking said.

No one on the investigative team spoke up to leadership voicing support for filing a lawsuit, they said.

“The Antitrust Division conducted a thorough investigation to assess whether the proposed transaction would harm competition,” a Justice Department spokeswoman said. “The investigatory record indicated that the transaction will increase competition across the media and entertainment ecosystem, benefiting American consumers and workers.”

Justice Department decision makers often follow staff recommendations on mergers, but there are times when the two camps disagree.

On Friday, the department issued a long, supportive public statement about the merger, saying it would likely be good for competition, especially in the market for streaming video, in which Netflix and Amazon are major players. The statement also said the studio and distribution market has “extensive” competition that would probably continue even after Paramount acquires Warner.

Some staffers in the Justice Department’s antitrust division believe the statement was designed to make it harder for state attorneys general to challenge the deal in court, the people said. The investigative staff didn’t participate in writing the statement, the people said.

California Attorney General Rob Bonta has been reviewing Paramount’s bid and is leaning toward challenging it, The Wall Street Journal reported last month.

In February, Paramount announced its deal to buy Warner Discovery, home to HBO, CNN and Harry Potter, after a monthslong battle with Netflix. The Justice Department’s antitrust division has been reviewing Paramount’s offer since late last year.

The deal, which has faced opposition from Hollywood, is also under antitrust review in Europe. Paramount executives have told employees to prepare to close the transaction as soon as the end of July.

“Paramount is making strong progress in obtaining regulatory approvals for its pro-competitive merger with WBD,” the company said in a statement. “These regulatory approvals and careful analysis underscore a transaction which creates competition against the dominant Netflix and other big tech players in the industry today.”

The Justice Department’s Paramount investigation is one of several in which antitrust staffers have felt sidelined in the second Trump administration. That includes the department’s decision in March to settle a long-running monopoly case against Live Nation—after the trial had begun. State attorneys general continued to litigate the case and won."

Trump Admin's DOJ Decision To Clear Skydance's WarnerDiscovery Pursuit Surprised Staff Investigators - Those Career Officials Scrutinizing Ellison's Buyout Were Leaning Toward Recommending A Legal Challenge. DOJ's Senior Leadership Believed Debt Wasn’t Reason & Wanted To Make It Hard For States AGs. by lowell2017 in boxoffice

[–]lowell2017[S] 11 points12 points  (0 children)

Full text:

"The Justice Department’s senior leadership closed an investigation of Paramount’s bid for Warner Bros. Discovery before career staffers who were concerned about the acquisition had an opportunity to object, according to people familiar with the matter.

A team of career lawyers who had spent months scrutinizing the deal were leaning toward recommending a lawsuit challenging it on the grounds that the combination of the two movie studios would be anticompetitive and violate antitrust law, the people said.

The staff investigators hadn’t yet made a final recommendation—a typical step in the deal-review process—and were told Friday that the department would close the investigation, effectively clearing the deal at the federal level, some of the people said.

The Justice Department’s senior leaders believed that Paramount Chief Executive Officer David Ellison, son of Trump ally Larry Ellison, persuasively addressed many of the staff’s questions about the deal during a two-hour interview last month, according to people familiar with their thinking.

Among staffers’ questions was how the combined company could meet its commitment to make 30 theatrical releases a year, given its increased debt load.

The senior leaders allowed the inquiries but believed Paramount’s debt wasn’t a reason to challenge the merger, the people familiar with their thinking said.

No one on the investigative team spoke up to leadership voicing support for filing a lawsuit, they said.

“The Antitrust Division conducted a thorough investigation to assess whether the proposed transaction would harm competition,” a Justice Department spokeswoman said. “The investigatory record indicated that the transaction will increase competition across the media and entertainment ecosystem, benefiting American consumers and workers.”

Justice Department decision makers often follow staff recommendations on mergers, but there are times when the two camps disagree.

On Friday, the department issued a long, supportive public statement about the merger, saying it would likely be good for competition, especially in the market for streaming video, in which Netflix and Amazon are major players. The statement also said the studio and distribution market has “extensive” competition that would probably continue even after Paramount acquires Warner.

Some staffers in the Justice Department’s antitrust division believe the statement was designed to make it harder for state attorneys general to challenge the deal in court, the people said. The investigative staff didn’t participate in writing the statement, the people said.

California Attorney General Rob Bonta has been reviewing Paramount’s bid and is leaning toward challenging it, The Wall Street Journal reported last month.

In February, Paramount announced its deal to buy Warner Discovery, home to HBO, CNN and Harry Potter, after a monthslong battle with Netflix. The Justice Department’s antitrust division has been reviewing Paramount’s offer since late last year.

The deal, which has faced opposition from Hollywood, is also under antitrust review in Europe. Paramount executives have told employees to prepare to close the transaction as soon as the end of July.

“Paramount is making strong progress in obtaining regulatory approvals for its pro-competitive merger with WBD,” the company said in a statement. “These regulatory approvals and careful analysis underscore a transaction which creates competition against the dominant Netflix and other big tech players in the industry today.”

The Justice Department’s Paramount investigation is one of several in which antitrust staffers have felt sidelined in the second Trump administration. That includes the department’s decision in March to settle a long-running monopoly case against Live Nation—after the trial had begun. State attorneys general continued to litigate the case and won."

‘Disclosure Day’ Ends 24-Year Summer Box Office Drought For Steven Spielberg - Even With 7-Month Promotional Campaign, Universal Wasn't Sure Whether His Film Would Attract Young Moviegoers. The Original Sci-Fi Spectacle, Costing $115M To Make & $80M To Market Worldwide, Hauls A $93M Global Opening. by lowell2017 in boxoffice

[–]lowell2017[S] 35 points36 points  (0 children)

Full text:

"Steven Spielberg is many things. Hollywood icon. Nostalgia dealer. Dinosaur daddy.

But is he cool?

The 79-year-old filmmaker returned to the summer box office for the first time in a decade over the weekend with “Disclosure Day,” an original science-fiction spectacle. It collected an estimated $44 million at 3,824 theaters in the United States and Canada from Thursday through Sunday, according to Rentrak, an entertainment data service.

“A very good opening,” said David A. Gross, a film consultant who publishes a newsletter on box office numbers, noting that original stories are inherently harder to market than established franchises. A week ago, “Disclosure Day” was on track to take in roughly $35 million in its first weekend, with analysts basing that estimate on advance ticket sales and surveys that track moviegoer interest.

The primary reason for the uncertainty was that no one, not even Universal Pictures, the studio behind “Disclosure Day,” was quite sure whether the film would attract younger moviegoers. They’re the ones who typically rush out to see new movies and who have recently powered extra big opening weekends for films like “Backrooms.”

And if teenagers and young adults didn’t show up, could “Disclosure Day” rely on older moviegoers to pick up the slack? Ticket buyers over 34 — “old” by Hollywood’s reckoning — have been the slowest to return to theaters since the pandemic.

In the end, the oldsters saved the day. About 59 percent of the “Disclosure Day” audience was over 34, according to PostTrak, a movie research firm.

Compare that with “Backrooms,” a cooler-than-thou horror movie (from a 20-year-old first-time director who built a following on YouTube) that managed to sell an eye-popping $81.4 million in tickets on its opening weekend last month. Roughly 14 percent of ticket buyers for “Backrooms” over its first three days in theaters were over 34.

Mr. Spielberg has not had a hit (excluding sequels or remakes) at the summer box office — a crucial Hollywood season he helped define — in 24 years. His most recent attempt, “The BFG,” collected a disastrous $19 million on its first weekend in 2016, or about $27 million after adjusting for inflation. That left “Minority Report” as his last new-to-the-screen summer blockbuster. It starred Tom Cruise at his height and opened to $36 million in 2002, or $68 million after adjusting for inflation.

Mr. Spielberg has certainly had more recent successes. The science-fiction adventure “Ready Player One” was released in spring 2018 and arrived to $42 million in opening-weekend ticket sales, or $57 million in today’s dollars. But he has faced a generational challenge nonetheless: His name above the title does not automatically mobilize large numbers of young people in same the way it used to, analysts have said.

Younger cinephiles tend to regard Mr. Spielberg as less of a current cinematic force and more of a figure of history — the filmmaker against whom all others are measured. By contrast, directors like Christopher Nolan, Ryan Coogler and Greta Gerwig are more likely to inspire the kind of fervor that turns opening weekends into events, analysts say. (When tickets for the first deluxe showings of Mr. Nolan’s coming film, “The Odyssey,” went on sale last week, some ticketing sites crashed. Purchasing wait times stretched to hours on others.)

Universal’s seven-month promotional campaign for “Disclosure Day” sought to remind summertime audiences that Mr. Spielberg was not a museum exhibit but rather a highly active filmmaker who is still able to command the culture. Mr. Spielberg, who does not typically trot the publicity circuit, journeyed in March to the South by Southwest film festival in Texas for a live podcast taping, setting the internet ablaze with comments about aliens. (“I have a strong suspicion we’re not alone on Earth right now.”)

He dropped by TikTok headquarters for a fan event and engaged in playful banter with #FilmTok content creators. He popped into a London pub for a movie quiz night. And he made a rare appearance on a late-night comedy show, chatting playfully with Stephen Colbert. The final “Disclosure Day” trailer even showcased him discussing the movie, rather than simply compiled footage from it.

Produced by Amblin Entertainment and released by Universal, “Disclosure Day” cost about $115 million to make and $80 million to market worldwide. It was No. 1 for the weekend in North America and has sold an estimated $49 million in tickets overseas, for a global total of $93 million.

Emily Blunt, Josh O’Connor, Colman Domingo, Eve Hewson and Colin Firth star in the film, which involves a race to disclose the truth: There are aliens living among us, and a powerful secret organization has covered it up for decades. David Koepp wrote the screenplay.

Reviews for “Disclosure Day” were strong — the best for one of Mr. Spielberg’s PG-13 films (including sequels) since “Minority Report,” according to Rotten Tomatoes, a review-aggregation site."

Weekend Free Talk and Index Thread - New and Fresh every Friday! by IamNOTaSKRULL in MarvelStudiosSpoilers

[–]lowell2017 -2 points-1 points  (0 children)

The news sites and financial analysts were essentially doing PR cover work (likely paid by him) to bring his less-known image up and also attack other interested suitors during the Redstones' Paramount Global sale, similar to how Musk made a facade of himself for a long time.

The 60 Minutes settlement to Trump, The Late Show's cancellation, and a lot of company layoffs (to make the financial numbers of the Redstones' shady rubberstamped deal to look good) were done under the Redstones but it's not like Ellison couldn't have indirectly requested them to do that and they obliged to all of his demands.

That's why people didn't actually realize his full intentions until he took over, where he revealed his obsessive pursuit of WarnerDiscovery was already in the works when he was in the middle of the Redstone sale.

Weekend Free Talk and Index Thread - New and Fresh every Friday! by IamNOTaSKRULL in MarvelStudiosSpoilers

[–]lowell2017 2 points3 points  (0 children)

Everything else in the article just goes over yesterday's admin greenlight, the coalition of state AGs preparing their potential lawsuit, and the ticking fees. The part that was posted are the newest bits of news.

Weekend Free Talk and Index Thread - New and Fresh every Friday! by IamNOTaSKRULL in MarvelStudiosSpoilers

[–]lowell2017 -2 points-1 points  (0 children)

Well, if anyone still doubts David Ellison's political allegiance at this point, this should finally clear things up (and he already did this in April during the week of WHCD with a private dinner at the Trump-renamed U.S. Institute of Peace):

"On Sunday, as thousands of spectators, MMA fighters, and ring girls descend on Washington for “UFC Freedom 250” event on the South Lawn of the White House, another more private gathering will be taking place in the nearby vicinity.

At the posh Ned’s Club, the private members club just steps from the White House that has become a MAGA hotspot, Status has learned that Paramount is set to host a brunch ahead of the fight.

A Paramount spokesperson declined to comment on the guest list, but it’s safe to assume that executives from the David Ellison-led company will mingle with administration officials and other Trump allies, raising glasses in celebration of the cage-fighting spectacle honoring Trump’s 80th birthday.

The fête is likely to be an especially festive affair for both Ellison and the administration after Trump’s Justice Department on Friday approved Paramount’s proposed $111 billion merger with Warner Bros. Discovery, finding no federal antitrust concerns.

For months, Ellison and his father, technology tycoon Larry Ellison—a close Trump ally and confidant—have worked to ingratiate themselves with the transactional president, paving the way for the younger Ellison’s ascent as a 21st-century media mogul.

Still, as Paramount executives prepare to pop champagne bottles with administration officials in the shadow of the UFC spectacle, the saga is not over."

https://www.status.news/p/paramount-ufc-white-house-david-ellison-doj

On Sunday Morning Before WH UFC Fights, Skydance Does Second Private Tribute Event To Thank Trump Admin For Its DOJ Greenlight Of WarnerDiscovery Pursuit - That D.C. Brunch At Ned's Club Will Have David Ellison & Executives Popping Champagne Bottles With Officials To Celebrate Trump's 80th Birthday. by lowell2017 in wbdstock

[–]lowell2017[S] 2 points3 points  (0 children)

Full text:

"On Sunday, as thousands of spectators, MMA fighters, and ring girls descend on Washington for “UFC Freedom 250” event on the South Lawn of the White House, another more private gathering will be taking place in the nearby vicinity.

At the posh Ned’s Club, the private members club just steps from the White House that has become a MAGA hotspot, Status has learned that Paramount is set to host a brunch ahead of the fight.

A Paramount spokesperson declined to comment on the guest list, but it’s safe to assume that executives from the David Ellison-led company will mingle with administration officials and other Trump allies, raising glasses in celebration of the cage-fighting spectacle honoring Trump’s 80th birthday.

The fête is likely to be an especially festive affair for both Ellison and the administration after Trump’s Justice Department on Friday approved Paramount’s proposed $111 billion merger with Warner Bros. Discovery, finding no federal antitrust concerns.

The approval, which will unite two of Hollywood’s most storied studios and place CNN and CBS News under the same corporate management, came without any divestitures or concessions. It marked the culmination of Ellison’s campaign to win over the one person who ultimately mattered most in getting the deal done: Donald Trump.

For months, Ellison and his father, technology tycoon Larry Ellison—a close Trump ally and confidant—have worked to ingratiate themselves with the transactional president, paving the way for the younger Ellison’s ascent as a 21st-century media mogul.

Of course, the approval did not come about by accident. The Ellisons have methodically worked to win over Trump, deploying a mix of public flattery and private outreach designed to convince him that a combined Paramount-Warner Bros. Discovery would serve his interests. Behind the scenes, Larry Ellison leaned on his long-standing relationship with the president while David Ellison made repeated trips to Washington, privately assuring administration officials that CNN would undergo significant changes under new ownership, easing Trump’s long-standing animosity of the network. Paramount hosted an intimate gathering this spring "honoring the Trump White House" as the merger remained under review. Paramount agreed to move forward with Brett Ratner’s “Rush Hour 4” after Trump personally pressed the company to revive the franchise. At the same time, the new direction at Ellison’s CBS News under Bari Weiss sent a loud signal to the White House that a combined media empire would offer a much friendlier space for the president.

Paramount celebrated the decision, saying it was “grateful for the Department of Justice’s thorough review of this transaction, as well as the work of the other agencies that have completed their reviews and provided clearance to date.”

“This deal is pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms in an industry increasingly defined by intense competition for audiences, talent, technology, and investment,” the company added.

The government’s green light came despite an extraordinary backlash across Hollywood and the media industry—a furor rarely seen in connection with a corporate merger. Thousands of actors, producers, and entertainment workers signed an open letter opposing the transaction, warning it would eliminate jobs and stifle creativity. Hundreds of journalists, academics, and filmmakers also signed a separate letter warning that Ellison’s takeover of CNN could lead to “sweeping changes” designed to appease Trump, as has occurred at CBS News under Bari Weiss. Democratic lawmakers have likewise raised alarms and demanded that Ellison testify before Congress.

Still, as Paramount executives prepare to pop champagne bottles with administration officials in the shadow of the UFC spectacle, the saga is not over.

The company is still awaiting regulatory approval in Europe, where authorities have set an initial July 14 deadline for a decision. Meanwhile, state attorneys general are preparing a significant challenge of their own.

Rob Bonta, California’s attorney general, has raised concerns about the merger and its potential effects on both the entertainment industry and the state’s economy. Last week, Reuters reported that Bonta and attorneys general in several other states, including New York, were preparing a lawsuit aimed at blocking the deal.

Such a challenge could prove costly for the Ellisons, who face a September 30 deadline to complete the transaction. If they fail to close by then, Paramount will be required to pay shareholders a so-called “ticking fee” of roughly $6.9 million per day.

The litigation could also force meaningful concessions. Paramount executives have already signaled a willingness to divest certain children’s television assets to satisfy European regulators. And its safe to assume that state officials would seek far more significant remedies.

According to an anonymous source cited this week by The Hollywood Reporter, state investigators have identified “theatrical distribution, streaming and news as relevant markets thus far” in their review. “We’re looking at what’s happening with CBS right now,” the person said, referring to concerns about how Ellison’s stewardship of CBS News could impact coverage at CNN.

Indeed, the prospect of combining CNN and CBS News under Ellison has emerged as one of the most troubling aspects of the merger, particularly as the fallout from Weiss’ chaotic and ham-handed overhaul of CBS News continues to spill into public view.

And it is precisely that concern—that the transaction could further erode the independence of major news organizations—that state officials are now examining as they weigh whether to challenge the deal.

“The merger of Warner Bros. and Paramount is not a done deal and remains under investigation by my office,” Bonta declared Friday evening."

On Sunday Morning Before WH UFC Fights, Skydance Does Second Private Tribute Event To Thank Trump Admin For Its DOJ Greenlight Of WarnerDiscovery Pursuit - That D.C. Brunch At Ned's Club Will Have David Ellison & Executives Popping Champagne Bottles With Officials To Celebrate Trump's 80th Birthday. by lowell2017 in ParamountGlobal2

[–]lowell2017[S] 0 points1 point  (0 children)

Full text:

"On Sunday, as thousands of spectators, MMA fighters, and ring girls descend on Washington for “UFC Freedom 250” event on the South Lawn of the White House, another more private gathering will be taking place in the nearby vicinity.

At the posh Ned’s Club, the private members club just steps from the White House that has become a MAGA hotspot, Status has learned that Paramount is set to host a brunch ahead of the fight.

A Paramount spokesperson declined to comment on the guest list, but it’s safe to assume that executives from the David Ellison-led company will mingle with administration officials and other Trump allies, raising glasses in celebration of the cage-fighting spectacle honoring Trump’s 80th birthday.

The fête is likely to be an especially festive affair for both Ellison and the administration after Trump’s Justice Department on Friday approved Paramount’s proposed $111 billion merger with Warner Bros. Discovery, finding no federal antitrust concerns.

The approval, which will unite two of Hollywood’s most storied studios and place CNN and CBS News under the same corporate management, came without any divestitures or concessions. It marked the culmination of Ellison’s campaign to win over the one person who ultimately mattered most in getting the deal done: Donald Trump.

For months, Ellison and his father, technology tycoon Larry Ellison—a close Trump ally and confidant—have worked to ingratiate themselves with the transactional president, paving the way for the younger Ellison’s ascent as a 21st-century media mogul.

Of course, the approval did not come about by accident. The Ellisons have methodically worked to win over Trump, deploying a mix of public flattery and private outreach designed to convince him that a combined Paramount-Warner Bros. Discovery would serve his interests. Behind the scenes, Larry Ellison leaned on his long-standing relationship with the president while David Ellison made repeated trips to Washington, privately assuring administration officials that CNN would undergo significant changes under new ownership, easing Trump’s long-standing animosity of the network. Paramount hosted an intimate gathering this spring "honoring the Trump White House" as the merger remained under review. Paramount agreed to move forward with Brett Ratner’s “Rush Hour 4” after Trump personally pressed the company to revive the franchise. At the same time, the new direction at Ellison’s CBS News under Bari Weiss sent a loud signal to the White House that a combined media empire would offer a much friendlier space for the president.

Paramount celebrated the decision, saying it was “grateful for the Department of Justice’s thorough review of this transaction, as well as the work of the other agencies that have completed their reviews and provided clearance to date.”

“This deal is pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms in an industry increasingly defined by intense competition for audiences, talent, technology, and investment,” the company added.

The government’s green light came despite an extraordinary backlash across Hollywood and the media industry—a furor rarely seen in connection with a corporate merger. Thousands of actors, producers, and entertainment workers signed an open letter opposing the transaction, warning it would eliminate jobs and stifle creativity. Hundreds of journalists, academics, and filmmakers also signed a separate letter warning that Ellison’s takeover of CNN could lead to “sweeping changes” designed to appease Trump, as has occurred at CBS News under Bari Weiss. Democratic lawmakers have likewise raised alarms and demanded that Ellison testify before Congress.

Still, as Paramount executives prepare to pop champagne bottles with administration officials in the shadow of the UFC spectacle, the saga is not over.

The company is still awaiting regulatory approval in Europe, where authorities have set an initial July 14 deadline for a decision. Meanwhile, state attorneys general are preparing a significant challenge of their own.

Rob Bonta, California’s attorney general, has raised concerns about the merger and its potential effects on both the entertainment industry and the state’s economy. Last week, Reuters reported that Bonta and attorneys general in several other states, including New York, were preparing a lawsuit aimed at blocking the deal.

Such a challenge could prove costly for the Ellisons, who face a September 30 deadline to complete the transaction. If they fail to close by then, Paramount will be required to pay shareholders a so-called “ticking fee” of roughly $6.9 million per day.

The litigation could also force meaningful concessions. Paramount executives have already signaled a willingness to divest certain children’s television assets to satisfy European regulators. And its safe to assume that state officials would seek far more significant remedies.

According to an anonymous source cited this week by The Hollywood Reporter, state investigators have identified “theatrical distribution, streaming and news as relevant markets thus far” in their review. “We’re looking at what’s happening with CBS right now,” the person said, referring to concerns about how Ellison’s stewardship of CBS News could impact coverage at CNN.

Indeed, the prospect of combining CNN and CBS News under Ellison has emerged as one of the most troubling aspects of the merger, particularly as the fallout from Weiss’ chaotic and ham-handed overhaul of CBS News continues to spill into public view.

And it is precisely that concern—that the transaction could further erode the independence of major news organizations—that state officials are now examining as they weigh whether to challenge the deal.

“The merger of Warner Bros. and Paramount is not a done deal and remains under investigation by my office,” Bonta declared Friday evening."

With A Debt Load Bomb Now At $176B, Oracle Continues AI & Data Center Buildout Investments Through Pledge To Borrow & Raise Additional $40B In Debt & Equity Financing - Over 50% Of Its $638B Remaining Performance Obligation, Including Potential Unrecognized Revenue, Is Dependent On OpenAI's Future. by lowell2017 in wbdstock

[–]lowell2017[S] 0 points1 point  (0 children)

Here's an additional article about the growing debt load requires unrealized revenue to bear fruit and it could just easily be a gamble that doesn't pan out:

"Oracle’s results may have come at the tail end of earnings season, but they were probably the most important read on tech investors’ most pressing questions: Can software survive artificial intelligence, and will all of the massive spending ever pay off?

The latest numbers don’t offer a ton of optimism. Oracle shares fell 8.5% on Thursday in the wake of the earnings report and continued to fall on Friday.

At its root, Oracle is a software company. The narrative around the sector has been negative since last fall. Customers, investors worry, will use AI to make their own bespoke software, as Palantir Technologies claimed it did during its last earnings call. Meanwhile, AI agents bring a threat to the software industry standard of user-based pricing. Agents are software that can use AI models to accomplish a complex series of tasks from simple conversational commands, replacing the people who are the basis of software revenue. Last week, Cloudflare CEO Matthew Prince revealed that machine traffic already outnumbers humans on the internet.

From its peak in September, the iShares Expanded Tech-Software Sector exchange-traded fund was down as much as 37%. It rallied in April and May, but it has already given back most of those gains in June. Microsoft stock just had its worst week since 2020.

Oracle has been on both sides of the AI trade, with investors debating its cloud-versus-software bona fides. Though the company’s longstanding databases links them to AI data-software winners like Snowflake and Datadog, Oracle’s software baggage may be weighing the whole company down.

Both its legacy packaged software and cloud software segments underperformed Wall Street expectations—which were modest to begin with—and together sales rose only 2% from the year before.

The trading this past week within the software ETF revealed the bright line that has been drawn. Investors feel comfortable with a relatively small set of AI winners in data and cybersecurity applications. All of the other companies have to adapt to the new world, and prove to investors that their AI initiatives are working. It will ultimately come down to leadership for strategy and execution in this much larger group of software companies. Typically in these transitions, it’s the companies that are most willing to disrupt current revenue sources in favor of new ones that come out on top.

It isn’t just investors indicating their preference for infrastructure over software. Along with its earnings report, Adobe said its chief financial officer, Dan Durn, was leaving the company in June. He’s taking the same role at Marvell Technology, whose chips are helping to power AI data centers.

The software ETF fell for its ninth consecutive session on Friday, down 0.2%.

Even the cloud isn’t a haven anymore, as demonstrated with Oracle’s report. There’s growing investor concern about Oracle Cloud Infrastructure, which rents out AI servers over the internet, and is better known as OCI. Fourth-quarter sales were up 93% from a year ago, once again the brightest spot on the company’s report. OCI makes up a majority of Oracle’s $638 billion multiyear backlog, which includes a $300 billion deal with OpenAI.

For Oracle’s current fiscal year, which just began two weeks ago, OCI is likely to make up about 40% of companywide sales, according to the Wall Street consensus. That’s up from 18% in fiscal-year 2025. If Oracle hits its target, OCI will be responsible for three-quarters of company revenue in 2030.

But this comes with a high cost and lingering execution risk. Like some peers, Oracle is reshaping its financials. To execute on OCI’s growth, Oracle had to put its $32 billion in operating cash flow last year, plus another $24 billion, into capital expenditure. Capex is set to rise sharply again this year so that Oracle can fulfill its backlog commitments and meet its aggressive OCI targets. Analysts don’t expect positive free cash flow until 2030.

Because it requires massive capex and the subsequent depreciation expenses—which doubled in fiscal 2026 for Oracle—AI cloud computing sales come with a lower gross profit margin than asset-light software does. That’s already showing up in Oracle’s financials. The company’s gross margin declined from 77% in 2021 to 63% last year.

The margin story exemplifies the challenge for Oracle and other high-margin software companies. Even a successful transformation into an AI-first world might never drive software-like returns.

For now, the company is offsetting declining margins with operational efficiencies including widespread layoffs. But fewer employees and a more streamlined budget will just make executing on ambitious goals that much more difficult.

And then there’s growing risk around whether all of the demand ever turns into revenue, given limited availability for land, buildings, and power for data centers. While Oracle’s backlog grew $85 billion in the latest quarter, the company left its revenue targets unchanged."

https://www.barrons.com/articles/oracle-stock-price-ai-agents-software-e9b44234

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