In today's episode, former Paramount Global majority owner Shari Redstone details her new investment in Israeli production banner Sipur. Variety business editor Todd Spangler and TV news editor Joe Otterson break down the latest on Redstone’s old shop as Paramount prepares a bid for Warner Bros. Discovery.
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Episode Transcript
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Speaker 1 (00:15):
Welcome to Daily Variety, your daily dose of news and
analysis for entertainment industry insiders. It's Wednesday, September seventeenth, twenty
twenty five. I'm your host, Cynthia Lyttleton. I am co
editor in chief of Variety alongside Ramin Setuda. I'm in
LA He's in New York, and Variety has reporters around
the world covering the business of entertainment. In today's episode,
(00:38):
will hear from Sherry Redstone on her new investment in
Israeli production Banner Support. The former Paramount Global chair explains
what drew her to the company and how Sippor's work
in content dovetails with the focus of her philanthropic work.
And then we'll hear from Variety's Business editor Todd Spangler
and TV News editor Joe Otterson. I'm the latest buzz
(01:00):
around Sharry Redstone's old shop as Paramount prepares to make
an offer for Warner Brothers Discovery. And we'll talk about
the mood at CBS these days after the long and
bruising Paramount's Guidance merger process. But before we get to that,
here are a few headlines just in this morning that
you need to know Reese Witherspoon, and Jennifer Anis dinner
(01:22):
keeping busy. Apple TV Plus has renewed The Morning Show
for season five. Congrats, Michael Ellenberg. The surest sign of
the fall is news from Hallmark Channel on its countdown
to Christmas schedule. My colleague Emily Longeretta has the scoop
on the twenty four movies and other content lined up
for Yule Tide season. Another sure sign of the fall
(01:44):
is news alerts from corporate giants on third quarter earnings reports.
Comcast's third quarter numbers will be out October thirtieth. All
of these stories and so much more can be found
on Variety dot com Right now. Now we turn to
conversations with industry leaders and Variety journalists about news and
(02:06):
trends in show business today. Our guest is Sherry Redstone,
the former Paramount Global chair who just six weeks ago
sold her family's media empire to David Ellison and Skydance Media.
Redstone wasn't looking to jump into a big new media
business opportunity so quickly, but Sippor was too good for
(02:26):
her to pass up. Redstone explains why, and she addresses
the challenges facing Israeli businesses amid the humanitarian crisis in
Gaza and strife in the region, and she discusses the
future of her long running advance at Capital Investment Venture.
Sheery Redstone, thank you so much for joining me today.
(02:47):
We got the word that you have become a board
member and an investor in Suppor, which is a very
dynamic production company out of Israel. We did a powerful
October seventh dot org documentary that we covered quite a bit. Sherry,
tell me what is it about Supor and the management
team there that made you want to make this investment
(03:09):
and also lend your name and all of the cloud
that you bring to their board of directors.
Speaker 2 (03:13):
I met Emilio right around the time of We Will
Dance Again coming out.
Speaker 1 (03:18):
We work together on getting the premiere on Paramount Plus.
Speaker 2 (03:22):
And the more I got to know him, the more
I got to meet his team and understand what it
was that he was doing, the more excited I got
about this opportunity. To be honest, I was not looking
to get involved in another business. I was really looking
to focus on my foundation and the work that I'm doing.
But the reality is is a real consistency between the
(03:44):
work that he is doing in the work that I
am doing in my foundation. They create great content, they
have a phenomenal team, they have a differentiated business model,
and they have a vision to be the first international
production studio out of Israel. And it's not just a vision,
it's something they're already executing on and have achieved success with.
Speaker 1 (04:08):
So it just became very exciting to me.
Speaker 2 (04:10):
They asked me to come in and cheer the board,
and that's what I'm going to do, and working with
the incredible team that A Medio has put together and
Gideon who has been with him from the beginning, and
I think it's a super opportunity.
Speaker 1 (04:23):
Can you give us a sense of the scope of
your involvement.
Speaker 2 (04:27):
I would say I'm going to give it a significant
amount of my time. I look at being involved with
them at least on a weekly basis, doing management meetings
with the team, working with a Medio in between. I'm
bringing somebody with me from National Amusements who I've worked
with for years, who's going to also strengthen what we're
going to be able to bring to the table.
Speaker 1 (04:48):
And this is a.
Speaker 2 (04:49):
Very serious venture for me, both from a business perspective
and also because I think there's a real opportunity to
create content there that will have an impact. They not
only have created commercial content which has a great track record.
Bad Voys was one of the top ten global hits
on Netflix, but they're also continuing to create documentaries that
(05:13):
tell the stories that need to be told. So I
am very much all in.
Speaker 1 (05:18):
They are doing a lot of different genres, which will
be good for diversity of the portfolio. What are the
advantages for a company that is based in Israel that
is aiming for the global market.
Speaker 2 (05:30):
The reason why I think it's so important to be
in Israel and why I think they have done a
great job is.
Speaker 1 (05:36):
That in Israel and Frankly.
Speaker 2 (05:38):
And other international markets, there's a lot of incredible creative talent,
both on the screen and off the screen. There are
a lot of people there who know how to tell
great stories, and you can tap into that creative talent
with a very different financial model than what you have
here in the United States. And I think because of
(05:59):
some of the challenges that exist in Israel, we work
even harder to find the right people to work with.
Speaker 1 (06:06):
I'm super excited about what we're going to be able
to bring to the entertainment world. I know this is
a big question, but obviously we are in a moment
of just incredible strife right now in the world, and
much of it involves Israel, criticism of the government, the
war in Gaza. Do you think that the controversy, the
(06:26):
drama surrounding the government of Israel are going to make
it more challenging for a company like support to grow. Yes,
I do.
Speaker 2 (06:34):
We're seeing the cots that are taking place, just like
we've seen on college campuses and everywhere else. But that's
exactly why I'm so excited to work with Seapoor and
to address these issues and to create content that we
might have to fight for distribution, we might have to
be aggressive in how we look at it, but that's
(06:55):
the opportunity. And you know me for a long time,
and I've always said we have a responsibility and an
obligation to use our voices.
Speaker 1 (07:02):
And to use our platforms to make a difference.
Speaker 2 (07:05):
And I see working with Sport and helping them achieve
this success as an opportunity.
Speaker 1 (07:11):
So I don't want to double down on the challenges.
Speaker 2 (07:14):
I really want to embrace the opportunity to present a
different Israel and to achieve the success I know.
Speaker 1 (07:21):
We can achieve. You mentioned earlier that the work of
support and the focus of their content is very much
a fit with a lot of what you're doing through
your foundation. Can you elaborate about what are the priorities
for that foundation.
Speaker 2 (07:34):
My foundation is very much focused on addressing the issues
of racism and anti semitism that exists around the world today.
Also very focused on civic education and bringing people together
who can come up with that common vision, who can
understand that when you sit across the table from somebody
one on one, it's very hard to hate them. So
(07:56):
my foundation is very focused on trying to scale one
on one relationships to have an impact on the issues
that concern all of us. I was just involved with
the conference last week in DC called MEAD, which is
the Middle East American Dialogue where we bring people together
from several countries and we have a discussion and we network.
(08:16):
And the programs that I'm creating in my foundation do
that both with young children, with teens, with families, with teachers,
and I really think we can make a difference one
person at a time, but it.
Speaker 1 (08:28):
Takes a long time. Certainly that work is needed more
than ever. Again, I know it's early yet and you
just went through a very big transaction, but is there
anything at all business wise that is on your reader.
Speaker 2 (08:40):
Honestly, as I said, I was not looking for another
business opportunity. I think right now, I really do want
to focus on my foundation, on my family, have a
little bit more of a personal life. So you never
know what life brings. But as I was not out
there looking for support and it just happened, and I
don't rule anything out, but I feel like I have
(09:02):
a really good life right now. I'm very excited about
the work I'm going to be doing in Israel, both
with CPOOR and philanthropically. I'm very excited about the work
my foundation is doing here in this country and in
other countries as well.
Speaker 1 (09:13):
So I've got my plate pretty fall. We know you're
going to stay busy, advance it capital. I know that
was really important to you. You seeded a lot of
cool companies. Is that still going? It is still existing.
Speaker 2 (09:24):
Our latest fund is more around crypto and AI, and
to be honest, if you want to be involved in
crypto and AI, it's something you really need to do
full time.
Speaker 1 (09:36):
You can't kind of dip your feet in.
Speaker 2 (09:37):
So I'm still very involved with some of our portfolio
companies who continue to exist, but my son in law
has really taken the lead on a lot of you know,
what we're doing going forward.
Speaker 1 (09:48):
Sure, is there anything else you'd like to say in
terms of what you're doing in the immediate future.
Speaker 2 (09:52):
No, I just ask everybody to, as I said before,
use their voices and use their platform to make a
better world for the next generation, because we do have
an opportunity here, but we have to come together.
Speaker 1 (10:05):
We can't keep putting ourselves apart. I wholeheartedly agree. Thank
you very much, Cynthia. Now we'll hear from Varieties Todd
Spangler and Joe Otterson. They break down the latest at
the studio and network that Sherry Redstone just sold Paramount
(10:26):
has surprised the industry by letting it be known that
they are preparing a big money offer to buy Warner
Brothers Discovery. Todd Spangler and Joe Otterson thank you both
for joining me.
Speaker 3 (10:36):
Helloi, great to be here. As always, so.
Speaker 1 (10:39):
Much to talk about. I can't remember a period when
more studios and assets have been in play. As regular
listeners of Daily Variety know, there's a lot going on
with Paramount and sky Dance, those two companies that just
came together, and wouldn't you know it, David Ellison has
sent their trial balon saying that Paramount is going to
field a formal offer for Warner Brothers Discovery in the
(11:03):
near future. We're still waiting for that as we record
here on Tuesday afternoon, but it is very clear that
is in fact happening. Joe. I also want to talk
about your story that dug into mood the vibe at CBS.
The network was very much in the crosshairs of the
merger process between Paramount and skuyd Dance, and so we
sent you on a mission to figure out what's the mood.
(11:24):
How are people feeling. Let's start on the deal making side.
The Dust had just settled a Paramount Skuiddance, and now
it seems like David Ellison wants more. Todd, It's been
about a week since this news broke. What's really going
on here?
Speaker 4 (11:38):
The more you look at it, the tea leaves suggests
that a roll up of Warner Brothers Discovery was in
the cards all along. This was the grand vision of
David Ellison and the folks at Redbird Capital. Along with you.
David's fucktor Larry Ellison one of the richest people in
the world, So it makes some sense. It really does
(12:00):
to gain scale on streaming and they can consolidate the
studio operations really become a major, major player. That's the
logic anyway.
Speaker 1 (12:13):
For a decade now, we've been writing stories saying Paramount
is small by comparison to its larger bribles par and
in this sale process the skuy Dance Talk Toup Paramount
and all of its many assets. It has an enormous library,
and that's a huge asset. But this desire so quickly
to go after Warner Brothers is both an admission that
(12:33):
Paramount on its own is too small to be competitive
at the level that David Ellison clearly wants to compete.
Now that you've had a chance to report and talk
to people, Todd, why are they doing this now versus
waiting till sometime next year when Warners is already planning
to become a smaller company by spinning off CNN and
TNT and TBS and all their other older linear cable
(12:56):
networks into a separate company. Why did Ellison make this
move now?
Speaker 4 (13:01):
The street interpret to this as they want to preempt
a bidding war for HBO and the streaming assets and
the studios side of the business. So by moving now,
they get in front of other potential bidders who would
want to cherry pick, in the words of one of
the analysts, just the most attractive assets and not And
(13:23):
by the way, a lot of the dead Warner Brothers
has a tremendous amount of debt. It's thirty five point
six billion gross debt as at the end of June.
A lot of that would be going to discover the
Global in this split up plan.
Speaker 1 (13:38):
That's the name of the channel's company that will sprun off, right, So.
Speaker 4 (13:42):
The standalone Warner Brothers would be not as highly leveraged
and make it a more attractive acquisition target. That would
mean a bidding process that might include Netflix, It might
include Apple, it might include Comcast or Amazon. Any number
of players might really want to go after this incredibly
valuable asset, which the market has responded to you driving
(14:04):
this time price up.
Speaker 1 (14:06):
Joe. As I talk to people about this, the thing
that I hear, especially here in Hollywood and the talent community,
is egad that would take out a whole other buyer
that the consolidation of Warner Brothers in Paramount would definitely
mean there's one less big buyer in town. What are
you hearing?
Speaker 3 (14:24):
That's definitely a major concern. I mean, you're already seeing
this massive contraction that we've been writing about for a
long time now in terms of the days of five
or six hundred scripted shows on the air are definitely
at an end. So now you're talking about fewer shows,
lower budgets, smaller writer's room, smaller crews. Everything is just
(14:44):
be smaller, be cheaper.
Speaker 1 (14:46):
Joe. Let's dig a little bit into your CBS story
from this past week. What's the basic mood the basic
vibe at CBS after a long period of certainty, there
is certainty, Paramount is the owner, David Ellison is the
new boss. People feeling.
Speaker 3 (15:01):
The broad answer is the mood is good. People are happy.
But as more than one person said to me, it
couldn't have gotten much worse. So it was only up
from here. People were really struggling under the past regime,
and like you said, the uncertainty and just the seemingly
unending rounds of layoffs and no one felt safe and
(15:22):
just everything was just a complete question mark for such
a long time. Yes, there are still layoffs coming under
David Ellison the new Skydance regime. But the fact of
the matter is like it's meet the new boss, Like
everyone is ready to move forward now as opposed to
just waiting in the limbo.
Speaker 1 (15:38):
Do you have a sense do they have a wish
CBS have a wish list for what the new regime,
what they can do now that they do have a
new owner that is pumping new money into the company.
Speaker 3 (15:49):
I think the biggest thing I took away from speaking
with insiders was, you know, if it ain't broke, don't
fix it. You know, CBS remains the most watched the
broadcast network and CBS show those are consistently at the
top of that list. And that's nothing to sneeze at
in this day and age. When you can command an
audience of seventeen million people a week for a broadcast drama,
that is a very very serious number. So I think
(16:12):
the general hope is it's going to be you know,
let CBS continue on business as usual.
Speaker 1 (16:17):
Todd, Joe, thank you so much for your time. As
we close out today's episode, we have to take a
moment to salute the incredible career of Robert Redford. I
dove into the Variety archives yesterday after learning the news
of his death at age eighty nine. The first mention
(16:37):
of Robert Redford in Variety's Pages came in the November fifth,
nineteen fifty nine edition. His name is listed in the
cast of the Broadway play The Highest Tree. By the
following year, Redford was mentioned several times a month in
our pages, and from there it was on. He did
so much stage work and so many early TV drama
(16:58):
anthology shows. What a training ground. From about nineteen sixty
five through the late nineteen eighties, Robert Redford had a
run of big, big movies that is hard to believe.
Downhill Racer, Barefoot in the Park, Which Cassidy and The
Sundance Kid, The Sting, All the President's Men on up
(17:20):
through the Natural and Out of Africa. It's incredible. Along
the way, Redford made time for activision on issues that mattered,
and he saw the need for a gathering of independent
filmmakers that would become the Sundance Film Festival. What a career,
what a legacy. Before we go, congrats to Robbie Henchman.
(17:43):
He's been named president of WME's one sixty over ninety
unit that represents brands. He's also been up to Senior
Partner at WM. Henchman was previously President of IMG Events
and Global Partnerships. He started at IMG thirty years ago
as an intern at Wimbledon. Thanks for listening. This episode
(18:04):
was written and reported by me Cynthia Littleton, with contributions
from Todd Spangler and Joe Otterson. Stick Snick's hick Picks.
Please leave us a review at the podcast platform of
your choice, and please tune in tomorrow for another episode
of Daily Variety
Welcome to Daily Variety, your daily dose of news and
analysis for entertainment industry insiders. It's Wednesday, September seventeenth, twenty
twenty five. I'm your host, Cynthia Lyttleton. I am co
editor in chief of Variety alongside Ramin Setuda. I'm in
LA He's in New York, and Variety has reporters around
the world covering the business of entertainment. In today's episode,
(00:38):
will hear from Sherry Redstone on her new investment in
Israeli production Banner Support. The former Paramount Global chair explains
what drew her to the company and how Sippor's work
in content dovetails with the focus of her philanthropic work.
And then we'll hear from Variety's Business editor Todd Spangler
and TV News editor Joe Otterson. I'm the latest buzz
(01:00):
around Sharry Redstone's old shop as Paramount prepares to make
an offer for Warner Brothers Discovery. And we'll talk about
the mood at CBS these days after the long and
bruising Paramount's Guidance merger process. But before we get to that,
here are a few headlines just in this morning that
you need to know Reese Witherspoon, and Jennifer Anis dinner
(01:22):
keeping busy. Apple TV Plus has renewed The Morning Show
for season five. Congrats, Michael Ellenberg. The surest sign of
the fall is news from Hallmark Channel on its countdown
to Christmas schedule. My colleague Emily Longeretta has the scoop
on the twenty four movies and other content lined up
for Yule Tide season. Another sure sign of the fall
(01:44):
is news alerts from corporate giants on third quarter earnings reports.
Comcast's third quarter numbers will be out October thirtieth. All
of these stories and so much more can be found
on Variety dot com Right now. Now we turn to
conversations with industry leaders and Variety journalists about news and
(02:06):
trends in show business today. Our guest is Sherry Redstone,
the former Paramount Global chair who just six weeks ago
sold her family's media empire to David Ellison and Skydance Media.
Redstone wasn't looking to jump into a big new media
business opportunity so quickly, but Sippor was too good for
(02:26):
her to pass up. Redstone explains why, and she addresses
the challenges facing Israeli businesses amid the humanitarian crisis in
Gaza and strife in the region, and she discusses the
future of her long running advance at Capital Investment Venture.
Sheery Redstone, thank you so much for joining me today.
(02:47):
We got the word that you have become a board
member and an investor in Suppor, which is a very
dynamic production company out of Israel. We did a powerful
October seventh dot org documentary that we covered quite a bit. Sherry,
tell me what is it about Supor and the management
team there that made you want to make this investment
(03:09):
and also lend your name and all of the cloud
that you bring to their board of directors.
Speaker 2 (03:13):
I met Emilio right around the time of We Will
Dance Again coming out.
Speaker 1 (03:18):
We work together on getting the premiere on Paramount Plus.
Speaker 2 (03:22):
And the more I got to know him, the more
I got to meet his team and understand what it
was that he was doing, the more excited I got
about this opportunity. To be honest, I was not looking
to get involved in another business. I was really looking
to focus on my foundation and the work that I'm doing.
But the reality is is a real consistency between the
(03:44):
work that he is doing in the work that I
am doing in my foundation. They create great content, they
have a phenomenal team, they have a differentiated business model,
and they have a vision to be the first international
production studio out of Israel. And it's not just a vision,
it's something they're already executing on and have achieved success with.
Speaker 1 (04:08):
So it just became very exciting to me.
Speaker 2 (04:10):
They asked me to come in and cheer the board,
and that's what I'm going to do, and working with
the incredible team that A Medio has put together and
Gideon who has been with him from the beginning, and
I think it's a super opportunity.
Speaker 1 (04:23):
Can you give us a sense of the scope of
your involvement.
Speaker 2 (04:27):
I would say I'm going to give it a significant
amount of my time. I look at being involved with
them at least on a weekly basis, doing management meetings
with the team, working with a Medio in between. I'm
bringing somebody with me from National Amusements who I've worked
with for years, who's going to also strengthen what we're
going to be able to bring to the table.
Speaker 1 (04:48):
And this is a.
Speaker 2 (04:49):
Very serious venture for me, both from a business perspective
and also because I think there's a real opportunity to
create content there that will have an impact. They not
only have created commercial content which has a great track record.
Bad Voys was one of the top ten global hits
on Netflix, but they're also continuing to create documentaries that
(05:13):
tell the stories that need to be told. So I
am very much all in.
Speaker 1 (05:18):
They are doing a lot of different genres, which will
be good for diversity of the portfolio. What are the
advantages for a company that is based in Israel that
is aiming for the global market.
Speaker 2 (05:30):
The reason why I think it's so important to be
in Israel and why I think they have done a
great job is.
Speaker 1 (05:36):
That in Israel and Frankly.
Speaker 2 (05:38):
And other international markets, there's a lot of incredible creative talent,
both on the screen and off the screen. There are
a lot of people there who know how to tell
great stories, and you can tap into that creative talent
with a very different financial model than what you have
here in the United States. And I think because of
(05:59):
some of the challenges that exist in Israel, we work
even harder to find the right people to work with.
Speaker 1 (06:06):
I'm super excited about what we're going to be able
to bring to the entertainment world. I know this is
a big question, but obviously we are in a moment
of just incredible strife right now in the world, and
much of it involves Israel, criticism of the government, the
war in Gaza. Do you think that the controversy, the
(06:26):
drama surrounding the government of Israel are going to make
it more challenging for a company like support to grow. Yes,
I do.
Speaker 2 (06:34):
We're seeing the cots that are taking place, just like
we've seen on college campuses and everywhere else. But that's
exactly why I'm so excited to work with Seapoor and
to address these issues and to create content that we
might have to fight for distribution, we might have to
be aggressive in how we look at it, but that's
(06:55):
the opportunity. And you know me for a long time,
and I've always said we have a responsibility and an
obligation to use our voices.
Speaker 1 (07:02):
And to use our platforms to make a difference.
Speaker 2 (07:05):
And I see working with Sport and helping them achieve
this success as an opportunity.
Speaker 1 (07:11):
So I don't want to double down on the challenges.
Speaker 2 (07:14):
I really want to embrace the opportunity to present a
different Israel and to achieve the success I know.
Speaker 1 (07:21):
We can achieve. You mentioned earlier that the work of
support and the focus of their content is very much
a fit with a lot of what you're doing through
your foundation. Can you elaborate about what are the priorities
for that foundation.
Speaker 2 (07:34):
My foundation is very much focused on addressing the issues
of racism and anti semitism that exists around the world today.
Also very focused on civic education and bringing people together
who can come up with that common vision, who can
understand that when you sit across the table from somebody
one on one, it's very hard to hate them. So
(07:56):
my foundation is very focused on trying to scale one
on one relationships to have an impact on the issues
that concern all of us. I was just involved with
the conference last week in DC called MEAD, which is
the Middle East American Dialogue where we bring people together
from several countries and we have a discussion and we network.
(08:16):
And the programs that I'm creating in my foundation do
that both with young children, with teens, with families, with teachers,
and I really think we can make a difference one
person at a time, but it.
Speaker 1 (08:28):
Takes a long time. Certainly that work is needed more
than ever. Again, I know it's early yet and you
just went through a very big transaction, but is there
anything at all business wise that is on your reader.
Speaker 2 (08:40):
Honestly, as I said, I was not looking for another
business opportunity. I think right now, I really do want
to focus on my foundation, on my family, have a
little bit more of a personal life. So you never
know what life brings. But as I was not out
there looking for support and it just happened, and I
don't rule anything out, but I feel like I have
(09:02):
a really good life right now. I'm very excited about
the work I'm going to be doing in Israel, both
with CPOOR and philanthropically. I'm very excited about the work
my foundation is doing here in this country and in
other countries as well.
Speaker 1 (09:13):
So I've got my plate pretty fall. We know you're
going to stay busy, advance it capital. I know that
was really important to you. You seeded a lot of
cool companies. Is that still going? It is still existing.
Speaker 2 (09:24):
Our latest fund is more around crypto and AI, and
to be honest, if you want to be involved in
crypto and AI, it's something you really need to do
full time.
Speaker 1 (09:36):
You can't kind of dip your feet in.
Speaker 2 (09:37):
So I'm still very involved with some of our portfolio
companies who continue to exist, but my son in law
has really taken the lead on a lot of you know,
what we're doing going forward.
Speaker 1 (09:48):
Sure, is there anything else you'd like to say in
terms of what you're doing in the immediate future.
Speaker 2 (09:52):
No, I just ask everybody to, as I said before,
use their voices and use their platform to make a
better world for the next generation, because we do have
an opportunity here, but we have to come together.
Speaker 1 (10:05):
We can't keep putting ourselves apart. I wholeheartedly agree. Thank
you very much, Cynthia. Now we'll hear from Varieties Todd
Spangler and Joe Otterson. They break down the latest at
the studio and network that Sherry Redstone just sold Paramount
(10:26):
has surprised the industry by letting it be known that
they are preparing a big money offer to buy Warner
Brothers Discovery. Todd Spangler and Joe Otterson thank you both
for joining me.
Speaker 3 (10:36):
Helloi, great to be here. As always, so.
Speaker 1 (10:39):
Much to talk about. I can't remember a period when
more studios and assets have been in play. As regular
listeners of Daily Variety know, there's a lot going on
with Paramount and sky Dance, those two companies that just
came together, and wouldn't you know it, David Ellison has
sent their trial balon saying that Paramount is going to
field a formal offer for Warner Brothers Discovery in the
(11:03):
near future. We're still waiting for that as we record
here on Tuesday afternoon, but it is very clear that
is in fact happening. Joe. I also want to talk
about your story that dug into mood the vibe at CBS.
The network was very much in the crosshairs of the
merger process between Paramount and skuyd Dance, and so we
sent you on a mission to figure out what's the mood.
(11:24):
How are people feeling. Let's start on the deal making side.
The Dust had just settled a Paramount Skuiddance, and now
it seems like David Ellison wants more. Todd, It's been
about a week since this news broke. What's really going
on here?
Speaker 4 (11:38):
The more you look at it, the tea leaves suggests
that a roll up of Warner Brothers Discovery was in
the cards all along. This was the grand vision of
David Ellison and the folks at Redbird Capital. Along with you.
David's fucktor Larry Ellison one of the richest people in
the world, So it makes some sense. It really does
(12:00):
to gain scale on streaming and they can consolidate the
studio operations really become a major, major player. That's the
logic anyway.
Speaker 1 (12:13):
For a decade now, we've been writing stories saying Paramount
is small by comparison to its larger bribles par and
in this sale process the skuy Dance Talk Toup Paramount
and all of its many assets. It has an enormous library,
and that's a huge asset. But this desire so quickly
to go after Warner Brothers is both an admission that
(12:33):
Paramount on its own is too small to be competitive
at the level that David Ellison clearly wants to compete.
Now that you've had a chance to report and talk
to people, Todd, why are they doing this now versus
waiting till sometime next year when Warners is already planning
to become a smaller company by spinning off CNN and
TNT and TBS and all their other older linear cable
(12:56):
networks into a separate company. Why did Ellison make this
move now?
Speaker 4 (13:01):
The street interpret to this as they want to preempt
a bidding war for HBO and the streaming assets and
the studios side of the business. So by moving now,
they get in front of other potential bidders who would
want to cherry pick, in the words of one of
the analysts, just the most attractive assets and not And
(13:23):
by the way, a lot of the dead Warner Brothers
has a tremendous amount of debt. It's thirty five point
six billion gross debt as at the end of June.
A lot of that would be going to discover the
Global in this split up plan.
Speaker 1 (13:38):
That's the name of the channel's company that will sprun off, right, So.
Speaker 4 (13:42):
The standalone Warner Brothers would be not as highly leveraged
and make it a more attractive acquisition target. That would
mean a bidding process that might include Netflix, It might
include Apple, it might include Comcast or Amazon. Any number
of players might really want to go after this incredibly
valuable asset, which the market has responded to you driving
(14:04):
this time price up.
Speaker 1 (14:06):
Joe. As I talk to people about this, the thing
that I hear, especially here in Hollywood and the talent community,
is egad that would take out a whole other buyer
that the consolidation of Warner Brothers in Paramount would definitely
mean there's one less big buyer in town. What are
you hearing?
Speaker 3 (14:24):
That's definitely a major concern. I mean, you're already seeing
this massive contraction that we've been writing about for a
long time now in terms of the days of five
or six hundred scripted shows on the air are definitely
at an end. So now you're talking about fewer shows,
lower budgets, smaller writer's room, smaller crews. Everything is just
(14:44):
be smaller, be cheaper.
Speaker 1 (14:46):
Joe. Let's dig a little bit into your CBS story
from this past week. What's the basic mood the basic
vibe at CBS after a long period of certainty, there
is certainty, Paramount is the owner, David Ellison is the
new boss. People feeling.
Speaker 3 (15:01):
The broad answer is the mood is good. People are happy.
But as more than one person said to me, it
couldn't have gotten much worse. So it was only up
from here. People were really struggling under the past regime,
and like you said, the uncertainty and just the seemingly
unending rounds of layoffs and no one felt safe and
(15:22):
just everything was just a complete question mark for such
a long time. Yes, there are still layoffs coming under
David Ellison the new Skydance regime. But the fact of
the matter is like it's meet the new boss, Like
everyone is ready to move forward now as opposed to
just waiting in the limbo.
Speaker 1 (15:38):
Do you have a sense do they have a wish
CBS have a wish list for what the new regime,
what they can do now that they do have a
new owner that is pumping new money into the company.
Speaker 3 (15:49):
I think the biggest thing I took away from speaking
with insiders was, you know, if it ain't broke, don't
fix it. You know, CBS remains the most watched the
broadcast network and CBS show those are consistently at the
top of that list. And that's nothing to sneeze at
in this day and age. When you can command an
audience of seventeen million people a week for a broadcast drama,
that is a very very serious number. So I think
(16:12):
the general hope is it's going to be you know,
let CBS continue on business as usual.
Speaker 1 (16:17):
Todd, Joe, thank you so much for your time. As
we close out today's episode, we have to take a
moment to salute the incredible career of Robert Redford. I
dove into the Variety archives yesterday after learning the news
of his death at age eighty nine. The first mention
(16:37):
of Robert Redford in Variety's Pages came in the November fifth,
nineteen fifty nine edition. His name is listed in the
cast of the Broadway play The Highest Tree. By the
following year, Redford was mentioned several times a month in
our pages, and from there it was on. He did
so much stage work and so many early TV drama
(16:58):
anthology shows. What a training ground. From about nineteen sixty
five through the late nineteen eighties, Robert Redford had a
run of big, big movies that is hard to believe.
Downhill Racer, Barefoot in the Park, Which Cassidy and The
Sundance Kid, The Sting, All the President's Men on up
(17:20):
through the Natural and Out of Africa. It's incredible. Along
the way, Redford made time for activision on issues that mattered,
and he saw the need for a gathering of independent
filmmakers that would become the Sundance Film Festival. What a career,
what a legacy. Before we go, congrats to Robbie Henchman.
(17:43):
He's been named president of WME's one sixty over ninety
unit that represents brands. He's also been up to Senior
Partner at WM. Henchman was previously President of IMG Events
and Global Partnerships. He started at IMG thirty years ago
as an intern at Wimbledon. Thanks for listening. This episode
(18:04):
was written and reported by me Cynthia Littleton, with contributions
from Todd Spangler and Joe Otterson. Stick Snick's hick Picks.
Please leave us a review at the podcast platform of
your choice, and please tune in tomorrow for another episode
of Daily Variety
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