Lindelof was one of over 1,000 signatories to sign the open letter Monday. The other names attached to the document include industry heavyweights like J.J. Abrams, Denis Villeneuve, David Fincher, Jason Bateman, Kristen Stewart, Emma Thompson, Noah Wyle, Ben Stiller and Lin-Manuel Miranda. Together, they express their deep concerns about the merger and, specifically, the signs that it is being supported by those prioritizing “the interests of a small group of powerful stakeholders over the broader public good.”

“The integrity, independence, and diversity of our industry would be grievously compromised,” the open letter stated. “This transaction would further consolidate an already concentrated media landscape, reducing competition at a moment when our industries — and the audiences we serve — can least afford it. The result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences in the United States and around the world.”

Lindelof, for his part, took to Instagram to express not only the initial fear he felt about attaching his name to the letter, but also the existential concerns that led him to ultimately do exactly that.

“When I was asked to sign a letter that openly opposed the sale of Warner Brothers to Paramount/Skydance, I felt two things; the first was that yes, absolutely, of course I opposed it. The second was oh shit, I’m afraid to say so publicly,” Lindelof wrote. “Fear is embarrassing. No one wants to be the guy puking in the boat in ‘Saving Private Ryan.’ They want to be the ones storming the beach. So why was I afraid? Some implied retaliation?”

“Being put on some list of rabble-rousers? Getting kicked off the beloved Warner Brothers backlot I have called home for the last fifteen years?” Lindelof continued, adding that he “sort of” knows Paramount-Skydance CEO David Ellison. “We produced a few things together not too long ago. I found him to be bright, ambitious and passionate. He loved movies and trusted the people he made them with. But still… Better not to risk it.”

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The Emmy winner said he briefly thought the letter — and his participation in it— would be pointless and that the document would “evaporate into the s–tstorm of an unrelenting news cycle.” But in the end, not even that was enough to stop him.

“Hollywood, believe it or not, is a blue-collar town. It’s thousands and thousands of Grips and Gaffers. Drivers and Decorators. Builders and Boom operators. Camera teams and Caterers. And they’re all about to get f—ked,” Lindelof explained. “Hollywood mergers mean fewer movies and fewer TV shows and that means fewer jobs. When two storied backlots are owned by the same company, the outcome is intuitive — one becomes a Ghost Town.”

“I’m scared. But I’m not a ghost. And a fight is already lost if it’s never fought. So I signed. Proudly. I understand why many of my peers have not — trust me, I’m more of a puker than a stormer,” he concluded. “But these boats are heading for the beach whether we like it or not… The only thing we have any control over is what we do when we get there.”

Lindelof’s comments came as Ellison has continued, unwavering, to push for the completion of his company’s proposed $110 billion acquisition of Warner Bros. Discovery. He has previously said that the sale could close as early as this summer, depending on regulatory obstacles. Meanwhile, concerns about the merger’s potential impact on Hollywood’s economy, output and job landscape have only continued to grow among those both within and outside of the entertainment industry.

In addition to expressing those very concerns, the Lindelof-signed open letter shared Monday declares support for California Attorney General Rob Bonta and his colleagues in other states, who have not only remained skeptical of the merger but have also reportedly been considering legal action to block it.

“We are grateful for their leadership,” Monday’s letter further noted, “and stand ready to support all efforts to preserve competition, protect jobs, and ensure a vibrant future for our industry, for American culture, and for our single most significant cultural export.”

The post Damon Lindelof Warns Paramount-WBD Merger Will Turn Warner Bros. Lot Into a ‘Ghost Town’ appeared first on TheWrap.

On Monday, the regulator launched an “invitation to comment,” allowing interested parties to submit “any initial views on the impact that the transaction could have on competition in the UK.”

The deadline for comments will be April 27. The CMA is asking that responses be sent to paramount.warnerbrosdiscovery@cma.gov.uk.

The invitation to comment comes after Paramount CEO David Ellison previously met with U.K. Secretary of Culture, Media and Sport Lisa Nandy to discuss issues in the film and TV industry and his bid for Warner Bros. Discovery in January.

In its notice, the CMA said that it has “received the necessary information from the parties to commence pre-notification,” but has not yet launched a formal investigation into the transaction.

“Effective competition helps ensure UK customers can enjoy quality content at a competitive price. The film and TV industries contribute billions to our economy, so it’s important we assess whether deals between studios may harm competition,” a CMA spokesperson told TheWrap. “Today’s invitation to comment is an initial step as we review Paramount’s purchase of Warner Bros Discovery. We expect to launch our Phase 1 investigation in the coming weeks.”

Under a Phase 1 review, the CMA would have 40 working days to decide whether the merger needs a more in-depth review. If it finds concerns with the merger, it will give the merging businesses five days to propose remedies to address its concerns.

The CMA would then have up to 5 more working days to consider the remedies. If none are offered or it does not accept them, the merger would be referred to a Phase 2 review. If if decides to accept remedies provisionally, it would publicly consult on them and consider any responses, with a deadline of 50 working days to make a decision.

If the review moves to Phase 2, an independent “inquiry group,” which consists of 3 to 5 people with a range of business, finance, economic and legal experience, would lead the investigation and makes the final decision within 24 weeks. In special circumstances, a Phase 2 investigation can be extended by up to eight additional weeks.

The inquiry group would then either clear the merger, consider remedies such as asset divestitures or a legal commitment from the merging businesses to behave in a certain way, or block the merger.

The CMA’s move comes after the Hart-Scott-Rodino waiting period in the U.S. Department of Justice’s review expired on Feb. 19. Despite the expiration, the DOJ can still investigate or challenge a Paramount-WBD deal.

Some U.S. lawmakers have also demanded that the Committee on Foreign Investment in the United States (CFIUS) to conduct a review of the deal, though Paramount has said that the Middle Eastern sovereign wealth funds who have contributed equity financing do not meet the threshold that would trigger a mandatory review.

Paramount and Warner Bros. expect the merger to close by the third quarter, subject to regulatory and shareholder approval. A shareholder vote is slated for April 23.

In the event the transaction does not close by Sept. 30, WBD shareholders will receive a 25 cent per share “ticking fee” for each quarter until closing. In the event that the deal does not close at all due to regulatory matters, Paramount will pay WBD a $7 billion termination fee.

The post UK Regulators Ready Investigation of Paramount-Warner Bros. Merger appeared first on TheWrap.

“We are deeply concerned by indications of support for this merger that prioritize the interests of a small group of powerful stakeholders over the broader public good,” the letter reads. “The integrity, independence, and diversity of our industry would be grievously compromised. Competition is essential for a healthy economy and a healthy democracy. So is thoughtful regulation and enforcement.”

The letter continues: “This transaction would further consolidate an already concentrated media landscape, reducing competition at a moment when our industries—and the audiences we serve—can least afford it. The result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences in the United States and around the world.”

The letter also declares support for action by California Attorney General Rob Bonta, fellow state attorneys general, and others to investigate and block the transaction.

Signees include major figures in both the Paramount and Warner Bros. spheres — Abrams, of course, made many films for Paramount including the “Star Trek” movies and his Bad Robot has a deal set up at Warner Bros., which is releasing his next movie.

“The Pitt” — and thus Warner Bros. — darling Noah Wyle, too, is a signee as is “Dune” filmmaker Denis Villeneuve, whose last three movies have been produced by Warner Bros.

Paramount Skydance CEO David Ellison is barreling ahead with his company’s $110 billion acquisition of Warner Bros. Discovery, which he has said could close as early as this summer if it makes it through regulatory hurdles. While he has promised continued investment in Warner Bros. and an output of 30 films per year in theaters from WB, many remain wary that any kind of consolidation would negatively impact an already struggling film and TV business, and there is the looming specter of job losses as a result of the merger.

In a statement, Paramount said it hears and understands the the concerns raised by the creative community and “respect the commitment to protecting and expanding creativity.”

“Importantly, as creators we know firsthand that this is also a moment when the industry has been facing significant disruption—and the need for strong, creative-first and well-capitalized companies that can continue to invest in storytelling has never been greater,” the company said. “This transaction uniquely brings together complementary strengths to create a company that can greenlight more projects, back bold ideas, support talent across multiple stages of their careers, and bring stories to audiences at a truly global scale—while strengthening competition by ensuring multiple scaled players are investing in creative talent.”

“We have been clear in our commitments to do just that: increasing output to a minimum of 30 high-quality feature films annually with full theatrical releases, continuing to license content, and preserving iconic brands with independent creative leadership —ensuring creators have more avenues for their work, not fewer,” the letter continues. “We understand the concerns raised as a result of the disruptions caused to our industry by COVID, entry of big-tech, and changes in consumer behavior, but we promise this: Paramount remains deeply committed to talent, and this merger strengthens both consumer choice and competition, creating greater opportunities for creators,  audiences and the communities they live and work in.”

Read the full open letter below, which remains open to additional signees:

As filmmakers, documentarians, writers, and professionals across the movie and television industry, we write to express our unequivocal opposition to the proposed Paramount-Warner Bros. Discovery merger.

This transaction would further consolidate an already concentrated media landscape, reducing competition at a moment when our industries—and the audiences we serve—can least afford it. The result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences in the United States and around the world. 

Our industry is already under severe strain, in large part due to prior waves of consolidation. We have witnessed a steep decline in the number of films produced and released, alongside a narrowing of the kinds of stories that are financed and distributed. Increasingly, a small number of powerful entities determine what gets made—and on what terms—leaving creators and independent businesses with fewer viable paths to sustain their work.

Media consolidation has accelerated the disappearance of the mid-budget film, the erosion of independent distribution, the collapse of the international sales market, the elimination of meaningful profit participation, and the weakening of screen credit integrity. 

Together, these factors threaten the sustainability of the entire creative community. That includes endangering the professional lives of the tens of thousands of workers who help make up that community in predominantly small businesses and independent companies embedded in local economies and communities nationwide.

We are deeply concerned by indications of support for this merger that prioritize the interests of a small group of powerful stakeholders over the broader public good. The integrity, independence, and diversity of our industry would be grievously compromised.
Competition is essential for a healthy economy and a healthy democracy. So is thoughtful regulation and enforcement. Media consolidation has already weakened one of America’s most vital global industries—one that has long shaped culture and connected people around the world. 

Fortunately, someone is doing something about all this. California Attorney General Rob Bonta and his colleagues in other states are reportedly scrutinizing the merger and considering legal action to block it. We are grateful for their leadership, and stand ready to support all efforts to preserve competition, protect jobs, and ensure a vibrant future for our industry, for American culture, and for our single most significant cultural export.

The post J.J. Abrams, David Fincher, Denis Villeneuve and Over 1,000 More Sign Open Letter Against Paramount-Warner Bros. Merger appeared first on TheWrap.

It’s CinemaCon 2026, the annual trade show held by Cinema United where Hollywood’s biggest films of the coming year — and sometimes beyond — are presented to the owners of the cinemas they will be screened in.

Since the event took its current form in 2011 after being previously known as ShoWest, the atmosphere at CinemaCon can best be described as defiant optimism, as theater execs proclaim onstage that moviegoing will forever endure despite the myriad of challenges the industry has faced, from shorter windows to competition from streaming and the challenge of a global pandemic that forced theaters’ doors closed for a year.

But this year’s edition comes amidst a queasy mix of optimistic signs and foreboding threats. The show arrives as theaters have enjoyed the best start to the year since the pandemic. After this coming weekend, the domestic box office for the year will cross $2.1 billion, on par with 2023 and roughly 22% ahead of 2025’s poor first quarter.

Theaters have called on Hollywood to bring them more films, and they’re getting it with major movies coming in rapid succession from the combo of Lionsgate’s “Michael” and Disney/20th Century’s “The Devil Wears Prada 2” in a month’s time, to the loaded end-of-year slate highlighted by Marvel Studios’ “Avengers: Doomsday” and Warner Bros./Legendary’s “Dune: Part Three.”

And yet, the specter of Hollywood consolidation — with Paramount racing to complete its acquisition of Warner Bros. Discovery this year — looms over the proceedings, one that has brought Cinema United to Capitol Hill over the last several months to warn of the existential threat it brings to an industry that has been part of neighborhoods around the world for more than a century. Amidst that uncertainty, what will the mood and the message at CinemaCon be?

Here’s what we’re looking at this week:

The merger in the room

In 2023, David Zaslav appeared at CinemaCon to pledge that Warner Bros. was committed to the future of the theatrical experience, a promise fulfilled last year when Warner became the first studio ever with seven consecutive $40 million-plus domestic openings that included the likes of “Sinners,” “A Minecraft Movie,” and “Superman.”

But barring a possible lawsuit from state attorneys general, it is looking like Warner Bros. will soon be under Paramount’s ownership, with the companies aiming to get the merger done by the end of the year. Paramount Skydance CEO David Ellison has made repeated vows to increase his studio’s theatrical output to 30 films annually with Warner in his portfolio, but that has been met with uniform skepticism from exhibitors, a sentiment shared in discussions TheWrap has had with theater owners and in letters that Cinema United President/CEO Michael O’Leary has sent to lawmakers and AGs.

“This merger threatens the economic and social well-being of our communities. While this transaction will impact theatre circuits of all sizes, it is Main Street America that will suffer the most. Smaller, mom-and-pop theatres will bear the disproportionate brunt of this latest attempt to scale Warner Bros,” O’Leary wrote this past week to the National Association of Attorneys General.

It’s unlikely that Warner Bros. or Paramount will acknowledge the merger outside of perhaps some faint acknowledgement of exhibitors’ worries. That leaves O’Leary’s Tuesday speech, which may not call out the studios by name but could reiterate what he has warned to Congress and to regulators: fewer distributors mean fewer films, and fewer films will mean fewer theaters across the country.

The next phase of windowing

A year ago, O’Leary called on studios to navigate the film industry towards a standard of a 45-day theatrical window, repeating the long-held mantra that longer windows mean bigger post-theatrical revenue for studios.

Since then, he’s largely gotten his wish. David Ellison has committed to a 45-day window at Paramount, and Universal will be transitioning to one for all of its films come 2027, while Disney has quietly practiced an even longer 100-day window since the end of 2022. While 45 days is not yet a hard, fast rule across Hollywood, it seems to be the direction the industry is leaning towards.

But as anyone in the business will tell you, windows are always fluid. It wasn’t long ago that it seemed like the 90-day theatrical window would forever remain untouched. So what’s the next step in this uneasy dance between studios and exhibitors? Insiders told TheWrap that windowing will be the subject of at least one major studio exec’s speech from the CinemaCon stage, and talks of what exhibitors can do on their end to get more moviegoers back in theaters will certainly be a part of industry panels throughout the week.

New studio partners

One presentation that Cinema United has heavily touted will be the first one on the CinemaCon schedule. Along with the big studios, Cinema United will host a showcase for three specialty/foreign distributors: Angel, StudioCanal and Sony Pictures Classics. That third slot was originally to be filled by Row K, but the new distributor backed out amidst an exodus of executives and an uneasy slate — film distribution is not for the faint of heart.

Angel is no stranger to CinemaCon, having hosted luncheon presentations since breaking into the box office in 2023 with “Sound of Freedom.” But this will be its first presentation on the main stage at Caesars Palace and comes at a time when the label is trying to expand its reputation beyond faith-based films with movies like “Sketch” and “Solo Mio.”

StudioCanal and Sony Pictures Classics will also showcase films as CinemaCon shines a spotlight on a specialty market that remains diminished compared to pre-pandemic norms. But their presence comes as O’Leary has urged theater owners to expand their horizons when it comes to choosing which films they screen in their theaters.

While these distributors wouldn’t completely make up for the theatrical output lost if studio consolidation continues, the theaters that survive the industry’s contraction will be the ones that find ways to uniquely engage their local community of moviegoers to reduce dependency on Hollywood’s biggest players.

What’s next for Amazon?

Speaking of the biggest players, Amazon MGM is coming back to CinemaCon after last year’s splashy debut, having proven itself with box office smash “Project Hail Mary.” The Ryan Gosling sci-fi movie became Amazon’s highest-grossing theatrical hit ever with a domestic total of $226 million and counting, and now the studio will look to build on that momentum as it continues its first year with a full theatrical slate.

“Masters of the Universe” will be Amazon’s big summer franchise tentpole, but the film on Amazon’s upcoming slate that theater owners have told TheWrap they have the most optimism for is “Verity,” the Colleen Hoover psychological thriller starring Dakota Johnson and Anne Hathaway that may become an autumn breakout title similar to “It Ends With Us” or “The Housemaid.”

The studio’s upcoming remake of “The Thomas Crown Affair” will also have a higher profile, as it will be the first major project for director/star Michael B. Jordan since his big “Sinners” Oscar win.

Blockbuster bonanza

And, oh yes, there are a bunch of big blockbusters that will be getting trailer reveals as well. Comic book movies may not have their 2010s box office clout, but there will be a lot of fans waiting to hear word of exclusive footage for films like DC’s “Clayface” and “Supergirl” and Marvel’s “Spider-Man: Brand New Day” and “Avengers: Doomsday,” the latter of which is expected to reveal its first trailer to exhibitors with the first-ever glimpse of Robert Downey Jr. as Doctor Doom.

Takashi Yamazaki will be on hand to reveal the first footage and plot details of the next “Godzilla” film, “Godzilla Minus Zero,” a follow up to the surprise 2023 hit that grossed $116 million. Zach Cregger, hot off of last year’s “Weapons,” is expected to show a first look at his take on “Resident Evil,” while Universal is expected to show new footage from the latest films by two of cinema’s greatest directors: Steven Spielberg’s “Disclosure Day” and Christopher Nolan’s “The Odyssey.”

On the animation front, Disney is expected to show the first footage for its next original film “Hexed,” while DreamWorks will show an entire work-in-progress cut of its next original offering “Forgotten Island.” Legacy sequels like “Shrek 5” and “The Devil Wears Prada 2” will be unveiled, and potential Oscar contenders like Aaron Sorkin’s “The Social Reckoning” and Alejandro Iñárritu’s “Digger,” which stars Tom Cruise, will be showcased for the first time anywhere.

The future may be stormy, but heartbreak still feels good in a place like this.

The post ‘Warnermount,’ Superheroes and Theatrical Windows: 5 Things We’re Looking for at CinemaCon appeared first on TheWrap.

The entertainment conglomerate moved to consolidate all its marketing departments in January as a cost-saving and efficiency measure. Marketing is now led by Asad Ayaz in a new position of chief marketing and brand officer.

All the Disney brands are expected to be affected, with layoffs stretching across film, television and streaming and including brands like Hulu, FX, ESPN, ABC News and Marvel, according to a knowledgeable individual. It will also include cuts in corporate, finance and technology.

Another knowledgeable person characterized the cuts as a move toward greater efficiency rather than merely cutting costs.

Disney did not respond to TheWrap’s request for comment.

This marks the first layoffs under new CEO Josh D’Amaro’s watch, who took over from Bob Iger in March. Iger himself oversaw over 8,000 layoffs after he returned as CEO in 2022.

In January, Ayaz — who was named Disney’s first-ever Chief Brand Officer in 2023 — restructured the company’s marketing under five executives as division heads across consumer products, experiences and entertainment, all of whom report to him.

Those executives include Ron Faris for Disney Consumer Products, Scott Hudgins for Disney Experiences, Martha Morrison for Disney Entertainment Studios, Shannon Ryan for Disney Entertainment Television, Disney+ and Hulu and Tina Thornton for ESPN.

“We will show up as one unified storytelling brand across our flywheel — film, television, streaming, parks, experiences, and sports — aligned to how consumers experience the company today,” Ayaz said at the time.

In a March memo to staff, D’Amaro said the company would operate as “One Disney,” stressing close collaboration across teams.

He also noted that Disney looked to embrace technology to unlock new possibilities, stating, “Innovation has always been part of Disney’s DNA. Used thoughtfully, it can empower our storytellers, strengthen our capabilities, and help us create more immersive, interactive, and personal ways for people to experience Disney.”

D’Amaro takes over the company as consolidation and the decline of linear impact the entire entertainment industry, and while Disney’s recent earnings have shown strong numbers from the Parks division, Marvel and Pixar suffered a tough 2025 at the box office.

Looking ahead, Disney hopes to have a banner 2026 with the launch of films “The Devil Wears Prada 2” and “The Mandalorian and Grogu” in May, “Toy Story 5” this summer and “Avengers: Doomsday” just in time for Christmas.

Searchlight Pictures aims to be in the awards race with Martin McDonagh’s “Wild Horse Nine” and Tony Gilroy’s “Behemoth!” later this year as well.

All of those films will, of course, need robust marketing campaigns.

The post Disney Layoffs of 1,000 to Begin Next Week in Marketing, Publicity and Other Divisions | Exclusive appeared first on TheWrap.

Before this appointment, Botnick was executive vice president of comedy development and head of animation and alternative for CBS Studios. In his new role, he will continue to hold that position while also overseeing Nickelodeon Animation Studios.

Specifically, Botnick will oversee the studio’s evolution across digital, TV and streaming as Paramount reimagines its strategy for children’s and family programming. He will lead Nickelodeon’s unscripted programming, which includes the Kids’ Choice Awards, while also developing new series and overseeing long-running hits like “SpongeBob SquarePants” and “PAW Patrol.” Moving forward, Nickelodeon Animation Studios will operate as its own television label within CBS Studios, similar to BET Studios.

“Alec’s leadership will be essential in shaping our next phase as Nickelodeon reinvents how we reach preschoolers, starting where discovery happens first and evolving into a true multi-platform brand,” Cheeks wrote in the memo.

Botnick will also continue to develop scripted comedies and alternative projects for CBS Studios while maintaining oversight of animated development across CBS, Comedy Central and MTV for both Paramount-owned and third-party platforms. Shows like CBS’ “Ghosts” and “Eternally Yours” fall under Botnick’s oversight as does Paramount+’s “Colin from Accounts” and Prime Video’s “Odd Jobs.”

That’s not the only change Cheeks announced to staffers Friday. Ashley Kaplan, the former executive vice president of unscripted and digital franchise studios for Nickelodeon who joined the brand in 2019, will transition to a consulting role starting Monday.

“We are grateful to Ashley for her years of leadership and appreciate her continued partnership,” Cheeks wrote.

As for Jules Borkent, the executive vice president of global commercial partnerships and operations, he will continue to oversee business and strategy for the Nickelodeon Kids and Family division. Borkent will work in partnership with Botnick and other key stakeholders on Nickelodeon’s strategy.

The post Nickelodeon Animation Studios Names Alec Botnick President appeared first on TheWrap.

The firm notes that the $110 billion deal is the result of a “competitive sales process and public bidding war between NFLX and PSKY, which provides shareholders comfort that the proposed deal is the best available.” It also said that shareholders are receiving a “meaningful premium to the unaffected share price” and that there’s a “potential downside risk of non-approval.”

However, it argues that the Warner Bros. Discovery CEO’s payout “represents one of the highest golden parachute estimates ever observed” due to a “problematic” $335.4 million tax reimbursement and “single trigger vesting acceleration” for the vast majority of the package’s unvested equity awards, meaning that Zaslav would be paid as soon as a change in control occurs.

Under the terms of the package, Zaslav will receive $34,219,178 in cash, $517,204,781 in equity, $44,195 in “perquisites and benefits.” The cash component includes $6 million in salary severance and $28.2 million in bonus severance. Meanwhile, the equity component includes $443,131,800 in options, 60,867,415 in restricted stock units and 13,205,566 in performance-based restricted stock units.

ISS argued that “auto-acceleration of unvested equity is not a best practice, and the full vesting acceleration of very recently-granted equity intended to cover multiple years represents a windfall.”

Additionally, Zaslav is eligible to receive a tax reimbursement, though the actual amount will “significantly decline with the passage of time” under IRS rules depending on when the deal closes. Had it closed on March 11, Zaslav would’ve been eligible for a $335.4 million tax reimbursement, bringing his estimated total compensation package to $887 million.

“Excise tax gross-ups represent an extraordinary cost that are inconsistent with common market practice, and most companies have eliminated such entitlements as a matter of good governance,” ISS added.

Based on current estimates from WBD’s outside tax advisers, if the Paramount-WBD closing were to occur in 2027, no tax reimbursement payment would be expected to be made to Zaslav.

ISS is one of the most influential proxy advisory firms, with many institutional shareholders following its recommendations. Its recommendations, which are updated through an annual survey with institutions, public companies and other stakeholder to gauge their views, aligned with management approximately 96% of the time for S&P500 companies during the 2025 proxy season.  

The Paramount-Warner Bros. merger is expected to close by the third quarter, subject to regulatory and shareholder approval. A shareholder vote is slated for April 23. The advisory vote on executive pay is non-binding.

In the event the transaction does not close by Sept. 30, WBD shareholders will receive a 25 cent per share “ticking fee” for each quarter until closing. In the event that the deal does not close at all due to regulatory matters, Paramount will pay WBD a $7 billion termination fee.

The post David Zaslav’s $887 Million Golden Parachute Rejected as ‘Problematic’ in Shareholder Advisory Firm’s Paramount-WB Assessment appeared first on TheWrap.

The move comes as the company has been conducting an internal investigation into a lawsuit brought against the executive by whistleblower and Las Vegas gambler R.J. Cipriani.

Cipriani has accused Shell of failing to pay him for crisis communications services he allegedly provided to the executive. He also claimed that Shell disclosed material, non-public information to him, including details about Paramount’s $7.7 billion UFC media rights deal and its plans to sweeten its bid for Warner Bros. Discovery. Shell subsequently countersued and accused Cipriani of defamation and extortion and Cipriani responded by widening the scope of his lawsuit to include Paramount, its board of directors and the Ellison family. 

In a statement, Paramount said that following a thorough review with independent counsel, the “facts demonstrated that these allegations do not establish a securities law violation.”

“Mr. Shell promptly notified [Paramount Skydance] of these accusations and is taking forceful legal action. [Paramount Skydance] and its named Board members will respond in the proceedings to the frivolous and baseless claims against [Paramount Skydance] and its named Board members and stockholders,” the statement continues. “Consistent with Mr. Shell’s commitment to prioritizing [Paramount Skydance]’s success, he has elected to transition from his positions as President of [Paramount Skydance] and a member of [Paramount Skydance]’s Board of Directors to focus on this lawsuit. [Paramount Skydance] is grateful for Mr. Shell’s many contributions and to have relied on him as a valued advisor.”

Cipriani is seeking at least $150 million in damages, while Shell is seeking an unspecified amount of compensation for all damages and losses caused by Cipriani’s accusations, as well as an “injunction restraining Cipriani from further defaming Shell.”

A spokesperson for Shell declined to comment.

Prior to being recruited by David Ellison, Shell was ousted from NBCUniversal in 2023 over allegations of sexual harassment from former CNBC correspondent Hadley Gamble, with whom he admitted to having an “inappropriate relationship.”

He would ultimately land at Gerry Cardinale’s RedBird Capital Partners, which helped fund Skydance’s $8 billion acquisition of Paramount and is backing the $47 billion in equity financing for Warner Bros. alongside the Ellison family. He would officially join the Paramount Skydance leadership team after the announcement of the merger in July 2024.

Shell’s departure comes as the Paramount-Warner Bros. merger is expected to close by the third quarter, subject to regulatory and shareholder approval. A shareholder vote is slated for April 23.

In the event the transaction does not close by Sept. 30, WBD shareholders will receive a 25 cent per share “ticking fee” for each quarter until closing. In the event that the deal does not close at all due to regulatory matters, Paramount will pay WBD a $7 billion termination fee.

The post Jeff Shell Out as Paramount Skydance President appeared first on TheWrap.

“To be perfectly clear, we haven’t even made a decision if we’re going forward right now,” Cameron pointed out. “But should I do that – I’d say that’s likely but not 100% – but we will learn from lessons from all three films.”

There are very tentative release dates for the fourth and fifth films (December 2029 and 2031, respectively), but insiders told TheWrap that conversations are being had about how to make future “Avatar” movies cheaper and shorter, to make the investment less risky should they move forward, with some indications that Disney could be rethinking a planned “Avatar” expansion to one of its California theme parks.

That these conversations are happening and Cameron, who initially plotted a vast, five-film saga, is questioning whether the franchise will continue after the latest release amassed $1.4 billion is surprising. After all, the first “Avatar,” released in 2009, is the highest-grossing film of all time, with more than $2.9 billion worldwide. The second film, 2022’s “Avatar: The Way of Water,” is the third highest-grossing movie ever, with $2.3 billion (Cameron is responsible for three of the top five highest-grossing films of all time). And there’s a lavish, highly interactive “Avatar”-themed land at Disney’s Animal Kingdom, part of the sprawling Walt Disney World complex outside of Orlando. Countless people visit Pandora every day.

But “Avatar: Fire and Ash” is still registering, for some, as a disappointment. Its box office tally is massive in a vacuum, but looks less impressive when compared to “Zootopia 2,” also released by parent company Disney last year, which made more than $1.8 billion. “Avatar: Fire and Ash” also made a billion dollars less than “Avatar: The Way of Water,” released just three years earlier. All on a reported budget of $350 million, with an additional $150 million marketing spend.

“It’s all about compare-and-contrast – ‘Fire and Ash’ made half of what the first movie made. And ticket prices in 2009 were not what they are in 2025. That’s the level that James Cameron and the ‘Avatar’ films are operating in,” said Paul Dergarabedian, head of marketplace trends at Comscore. “When an $89 million domestic opening weekend and almost $1.5 billion worldwide would be seen — in any stretch — as a disappointment. That’s why there’s that perception. These are high-class problems to have.”

Or, as a member of the “Avatar” team put it more succinctly in speaking with TheWrap, “It’s bulls–t that the movie made $1.5 billion and people are acting like it’s ‘Ishtar.’ There’s not a guarantee that they’re all going to make $2 billion. The trilogy has made $6.7 billion, which averages more than $2 billion per film.”

A Disney representative declined to comment.

Still, the question lingering in the backstage of science fiction awards shows and in the minds of executives at the Walt Disney Company in Burbank, is: How will the “Avatar” series move forward?

“Avatar” isn’t the only major franchise getting a rethink inside Disney — Marvel is under the microscope after a trio of misfires in 2025, Star Wars has its cinematic hopes pinned to “The Mandalorian & Grogu,” a departure from the Skywalker saga of films, and Pixar is leaning on sequels to ensure the animation studio’s longevity. As contraction squeezes the entire industry, even $1.4 billion doesn’t get you an automatic sequel greenlight.

It’s enough to make you wonder if we’ve spent our last Christmas on Pandora.

***

It was Jon Landau, the former Fox executive who later ran Cameron’s company Lightstorm and became his most trusted creative collaborator (he died in 2024 after a 16-month battle with esophageal cancer), who was often tasked with outlining the team’s immense vision for the “Avatar” saga.

Landau would regale visitors to Lightstorm – promotional partners, marketing executives, those new to the “Avatar” fold – with what the movies were going to be and how they would push technology and the boundaries of storytelling even further in the years ahead. Before the second film released, the “Avatar” team was already plotting out four more installments, complete with a return to Earth and epic, “Star Wars”-style space battles. The world of “Avatar” was only going to get bigger — but also, Landau would argue, more emotionally intimate — with each passing film. This was ultimately a story about family writ large, across a fantastical canvas.

And after the success of “Avatar: The Way of Water,” those plans seemed locked in.

Cameron shot sequences for both the third and fourth films during production of “Avatar: Fire and Ash” (one insider said around 22% of the fourth film has already been shot) and scripts for the fourth and fifth films are complete. Indeed, when embarking on the sequels, Cameron assembled a massive writers’ room of A+ talent, made up of Rick Jaffa and Amanda Silver, Josh Friedman and Shane Salerno, who broke the stories for the sequels together. Jaffa and Silver were mostly centered on movies two and three, while Friedman and Salerno were responsible for the fourth and fifth movies.

And the expansion wouldn’t just be at the movie theaters. To compliment the wildly popular land at Animal Kingdom in Florida, an “Avatar”-themed land at Disney California Adventure, across the esplanade from Disneyland, was announced with construction planned to begin in 2026.

But then those plans started to wobble, like an unsteady banshee in the skies above Pandora.

During the promotional campaign for the new movie, Cameron and members of the cast began openly talking about how “Avatar: Fire and Ash” could be the conclusion of the franchise. A last-minute edit made the fate of one of the characters (Stephen Lang’s villainous Quaritch) less nebulous, leaving one less potential dangling plot thread should a fourth film never materialize. And the parcel of land earmarked for the “Avatar”-themed attraction at Disney California Adventure became a hotly disputed piece of real estate, with former Imagineer Jim Shull openly hypothesizing that the land could instead be given over to a “Zootopia”-themed attraction that opened in Shanghai in 2023.

“Disney doesn’t do anything without a reason. The reality is that ‘Avatar 3’ did OK but as a cultural force, it’s exhausted. Nobody is demanding to see more. They like what they have and if they really like it, they can go to Florida and see it,” Shull told TheWrap. “California does not have a lot of land. If ‘Avatar’ had been a huge success and people were demanding ‘4’ and ‘5’ and beyond, that would change the equation. But there’s not a lot of demand.”

In Shull’s opinion, a swap to expand the “Zootopia” franchise in the California park makes sense.

“‘Zootopia 2’ exceeded expectations in terms of money and laid the groundwork for more ‘Zootopia,'” Shull said. “If I were Josh D’Amaro, in the seat, looking at the stock, I know that I could go to the board and say, ‘I’ve changed my mind for the stronger property,’ and there would be no pushback.”

Shull said that the lack of construction updates is telling. “The only time you do something like that is when you have second thoughts,” he said.

According to one person familiar with the plans at Disneyland, the parks’ operation teams are keener on the “Zootopia” attraction because it uses a similar ride system to another Disneyland attraction (Mickey and Minnie’s Runaway Railway) and could be more easily maintained. Another pointed to the fact that, since the “Avatar” attraction was a boat ride, it would also require its own water-treatment facility. Disney also, conspicuously, issued a press release on the Disney+ viewing numbers for “Zootopia 2” specifically calling out the fact that the “Zootopia” attraction at Shanghai Disneyland is the highest-rated ride at the entire park, “with one in four guests stating they came to the park specifically for the land.”

Construction on the DCA project – whatever it is – has already been pushed back a full year, which indicates something is going on with the space.

The battle for “Avatar,” it seems, has only just begun.

***

Where did the disconnect with the third movie come from?

“Avatar: Fire and Ash,” was just as compelling as the two earlier movies and just as visually rich, particularly when viewed in Cameron’s preferred 3D. Reviews were less enthusiastic (it’s at 66% on Rotten Tomatoes vs. “Avatar 2’s” 76%), but audience scores were solid. It once again won the Oscar for Best Visual Effects.

In other words – on paper it would seem that “Avatar 3” should do as much boffo box office as the two earlier films, but, strangely, didn’t.

The “Avatar” team, according to a person with knowledge of its release, felt that the rollout of the film was too similar to what Disney had done for the launch of “Avatar: The Way of Water,” a film that had been released just three years earlier. The team worried that audiences would feel that they had already seen “Fire and Ash,” even though it was a completely new movie.

But Disney would probably argue that the materials they received from the film were also very similar to “The Way of Water.” After all, “The Way of Water” and “Fire and Ash” were, initially, a single mammoth movie (this is why Jaffa and Silver are credited as writers on both), with a narrative that grapples with comparable themes and is full of set pieces with parallel visuals. Both movies, for example, focus largely on the Na’vi water clans, a group of bloodthirsty whalers and the Tulkun, a species of emotionally complex, whale-type creatures that populate Pandora’s crystalline oceans.

It is a fact that, in an era when Universal can sell tickets for Christopher Nolan’s “The Odyssey” a full year before the movie opens (and sell out those tickets), the promotional window for “Avatar: Fire and Ash” felt considerably truncated. The first teaser trailer arrived online on July 28 and was attached to “The Fantastic Four: First Steps,” another Disney movie, with the full trailer for the movie not debuting online until late September. By contrast, the first teaser for “The Way of Water” arrived in early May, giving it several more months to build momentum.

You could feel, as “Fire and Ash” approached, a decided absence of crucial pre-release buzz.

“There was no anticipation,” said one member of the “Avatar” team. “They literally used the same playbook [as for ‘The Way of Water’]. By not making it an event, it crippled the movie.”

There was also the movie’s massive 197-minute runtime, the longest in the franchise, which turns a quick jaunt to the movie theater into a James Cameron-worthy production, full of logistics and related hurdles. While an idea was floated to present the movie free of pre-movie trailers, Disney still sold 30 minutes of trailer real estate, ballooning the time needed to devote to “Avatar: Fire and Ash.” It wasn’t just a movie, it was an event, one that now had to be sandwiched into the busy holiday corridor. (Unlike the first two movies, the third “Avatar” opened a week closer to Christmas, ostensibly so that Disney could give “Zootopia 2” more of a runway.)

Add to the mix the fact that many other mechanisms for awareness simply weren’t there. There weren’t “Avatar” characters on cans of Dr. Pepper or a line of T-shirts released at Uniqlo. (Do you think they even drink Dr. Pepper on Pandora?) And consumer products related to “Avatar: Fire and Ash,” besides those released at the Florida theme park, were virtually nonexistent. This is a key “lever” pulled by Disney on any of their flagship titles, but a quick search of “Avatar: Fire and Ash” on DisneyStore.com pulls up four results – three T-shirts and a sweatshirt. That’s it.

Incidentally, there are pages of “Zootopia” stuff on the Disney Store website.

***

Based on conversations with people at Disney and those with knowledge of the “Avatar” team’s thinking, all agree that a further “Avatar” movie needs to be shorter and cheaper. But the question remains – how?

When it comes to getting the movie’s budget down, Cameron and his team have mentioned that they are determined to find a way to simplify the process, which is so complicated that we hesitate to even wade into the Pandorian waters to explain. It involves at least two full “shoots” – one where they are doing performance capture of the actors and another, mostly inside the computer, to figure out staging, camera movements and the intricacies of performance (along with the addition and staging of creatures and other elements). It’s a lot.

Costume designer Deborah Scott, who was nominated for an Oscar for her work on “Fire and Ash,” designed each costume and its associated props, fabricated those in real life and then fed them to the animators and designers, refining each look along the way. This, in a microcosm, explains how cumbersome, time-intensive and expensive each element of the “Avatar” films are, taking years to complete and requiring the hard work of hundreds of specialized technicians and artists.

Some might point to using AI somewhere along the way, to make something easier. Cameron, despite authoring the first two “Terminator” movies, which explicitly warned of the threat of artificial intelligence, joined the board of StabilityAI in 2024. But in the rollout of “Avatar: Fire and Ash,” Cameron went to great lengths to assure viewers that no AI was utilized. Not only did he talk about it in interviews but a brief presentation ran before screenings of the movie, including the one I attended on the Walt Disney Studios lot in early December, emphasizing the role of human artists in the creation of “Avatar.” AI was not a part of the “Avatar” lexicon.

There’s also the question of what a cheaper, more streamlined “Avatar” would even look like.

The “Avatar” movies are, to many, the last bastion of the really-for-real theatrical experience. Sure, you can watch them at home months after the fact — but do you want to? These movies are staggering accomplishments, full of aural and visual details only properly digestible on the largest screen you can find. Consider that, after the first film was released, some viewers complained of Pandora withdrawal — the movie was so vivid, so dreamy, that they actually got depressed when not watching.

There really is nothing like “Avatar,” anywhere, and it’s that overstuffed-ness that makes it a draw.

“I love these movies and I love the fact that it’s James Cameron making these movies,” New York Magazine critic Bilge Ebiri told TheWrap.”If James Cameron makes a fourth and fifth ‘Avatar’ and he makes them in his James Cameron way but he makes them for a budget, I’d still trust him. He’s not somebody who is going to phone it in or cut corners unnecessarily.”

Cameron has brought up the possibility of simply handing the movies off to another, younger filmmaker. He’s done it before. When it came time to make “Alita: Battle Angel,” based on the manga series by Yukito Kishiro and a project he had been flirting with even before he embarked on “Avatar,” he ended up handing the reins to Robert Rodriguez. Cameron still produced (with Landau) and co-wrote the script with Laeta Kalogridis, who worked on the first “Avatar.” But the experience showed that, with his time so committed to “Avatar,” he could delegate duties on a true passion project.

But, again, a Cameron-less “Avatar” feels wrong, somehow. These are movies that are built around the passion and obsessions of Cameron himself – ocean exploration, the importance of the environment, how cool big machines look when exploding midair. T uncouple the filmmaker and the films, like untethering an avatar from its human pilot mid-mission, could be catastrophic.

“It’s his vision, it’s his sensibility, that’s what drives these films. I also think that they have a legacy to preserve,” said Ebiri. “If they start giving us these janky fly-by-night sequels, it’s going to make us feel less good about the ‘Avatar’ movies.”

***

Where does that leave things now?

On the theme park side of things, Shull floated the possibility that the “Avatar” attraction planned for Disney California Adventure could still be used elsewhere. There’s an expansion pad, tentatively marked for a future attraction, show or additional retail or dining, tucked behind the current “Avatar”-themed land at Disney’s Animal Kingdom. And it could be used in a future overseas park – Shanghai’s second gate, dubbed Project Atlas, is in the planning stages and has seen an overhaul from an EPCOT-of-the-east-type science and technology park to something centered on Disney “adventures,” like “Avatar.” There is also talk that the third Tokyo gate, DisneySky, is back on the drawing board. And wouldn’t the floating mountains of Pandora fit perfectly with that theme?

And as for the additional two “Avatar” sequels, “Avatar: Fire and Ash” producer Rae Sanchini last week told Inverse, “Right now we’re figuring out the schedule. We’re working hard on it right now, budgeting, scheduling, planning, building out our new pipeline for them. As far as we’re concerned, we’re full speed ahead.”

As one industry insider with knowledge of the “Avatar: Fire and Ash” situation noted, the movie still made money and it will continue to make money for the company for decades to come. It just debuted on PVOD and has a physical release scheduled for later this spring — Cameron fans are certainly Blu-ray collectors. Every time a new “Avatar” movie comes out, the previous installments shoot to the top of the charts for both paid digital downloads and streams on Disney+. More people will visit the “Avatar” land in Florida. More people will buy tiny banshees that sit on their shoulder from the gift shop.

A member of the “Avatar” team thinks that, had “Avatar: Fire and Ash” made $2 billion, Cameron would have probably engaged with another project before returning to Pandora. Now, though, he’s determined to deliver four and five, which are said to be as radically different from “Avatar: Fire and Ash” as “Star Wars” was from “The Empire Strikes Back,” in spectacular fashion.

The analogy that the “Avatar” team member made was to the Michael Jordan documentary “The Last Dance.” Jordan usually took at least two weeks off after the conclusion of each season. But after a so-so season for the Bulls, he told his teammates that he’d be in the next day to start training. His teammates questioned him, “The next day?” But Jordan was determined.

“This time, I could see him being like, I’m on a mission,” this “Avatar” team member said. “I believe unequivocally that he will finish his five-film saga. Never bet against James Cameron.”

The post When $1.4 Billion Isn’t Enough: ‘Avatar’ Sequels Under the Microscope as Disney Weighs Franchise’s Future appeared first on TheWrap.

In an SEC filing on Tuesday, the David Ellison-owned media giant confirmed that Saudi Arabia’s Public Investment Fund (PIF), Abu Dhabi’s L’Imad 1st SPV 2 Exempt RSC and the Qatar Investment Authority’s QIA TMT Holding LLC will contribute equity financing to the $110 billion deal. Also contributing will be through LionTree Investment Fund.

Paramount said the “successful Equity Syndication” is an “important milestone in the WBD transaction process” and that their participation would diversify its shareholder base and offer the potential for “strategic and commercial opportunities.” It was not immediately clear what those strategic and commercial opportunities entail.

The investment comes at a tenuous time, with a conflict in Iran destabilizing the region. At home, lawmakers like Sen. Cory Booker have called for federal regulators to conduct a review of the foreign backing. The investment isn’t significant enough to trigger an automatic review by Committee on Foreign Investment in the U.S., although a voluntary one could be called.

For the Middle Eastern sovereign fund, the investment marks one of its biggest investments in U.S. media, with Saudi Arabia’s PIF in the midst of taking video game giant Electronic Arts private, as the countries look to diversify their investments away from energy.

Under the terms of the equity syndication, these investors will receive warrants to purchase Paramount stock that will equal the “20-trading-day average of the daily volume-weighted average price of PSKY Class B Common Stock.” This will be determined as of the third business day prior to the closing of the merger, subject to a ceiling of $16.02 per share and a floor of $12 per share.

One warrant will be issued for each share of Paramount common stock that the equity investor holds. Paramount said the warrants “support its longer-term objective of a wider and deeper public float.”

The move comes after the Ellison family and RedBird Capital Partners, who have said they are prepared to back the deal’s full $47 billion in equity financing, previously disclosed that other financial and strategic partners could be included at closing.

The Middle East funds’ and LionTree’s stakes will be non-voting and the Ellison family and RedBird will continue to hold the largest equity stake in Paramount Skydance as sole owners with 100% of the voting shares. The filing also states that their investments are “structured to comply with all applicable U.S. regulatory requirements (including FCC requirements), and will not impact the timing or likelihood of closing under the [Warner Bros. Discovery] Merger Agreement.”

While the SEC filing does not disclose how much each company is investing, the three Middle Eastern sovereign wealth funds previously committed a total of $24 billion. The Wall Street Journal reported that roughly $10 billion of that will come from PIF. The deal also includes $54 billion of debt commitments from Bank of America, Citigroup and Apollo.

In addition to the Middle East Funds, Jared Kushner’s Affinity Partners previously agreed to contribute financing for Paramount’s Warner Bros. bid, but later backed out. China’s Tencent Holdings, which is a passive investor in Skydance, also previously committed $1 billion but later backed out. While Bloomberg reported last month that Tencent was considering investing several hundred million dollars in the combined entity, the Journal reports that Tencent is not involved in the deal.

Shareholders will vote on the Paramount-Warner Bros. deal during a special meeting on April 23. The deal is also subject to regulatory approval.

The deal is expected to close by the third quarter, though Paramount executives have told employees to prepare for the deal to close as soon as July, according to WSJ.

If it doesn’t close by Sept. 30, shareholders will get a 25 cent per share “ticking fee” — or approximately $650 million — each quarter until closing. If it doesn’t close at all due to regulatory matters, WBD will get a $7 billion termination fee.

The post Paramount Confirms Middle East Sovereign Wealth Fund Investment to Back Warner Bros. Deal appeared first on TheWrap.