1 00:00:08,880 --> 00:00:11,760 Speaker 1: Welcome to Daily Variety, your daily dose of news and 2 00:00:11,800 --> 00:00:16,320 Speaker 1: analysis for entertainment industry insiders. It's Monday, January fifth, twenty 3 00:00:16,360 --> 00:00:19,520 Speaker 1: twenty six. I'm your host, Cynthia Littleton. I am co 4 00:00:19,680 --> 00:00:23,360 Speaker 1: editor in chief of Variety alongside Ramin Setuda. I'm in 5 00:00:23,560 --> 00:00:26,280 Speaker 1: LA He's in New York, and Variety has reporters around 6 00:00:26,280 --> 00:00:29,520 Speaker 1: the world covering the business of entertainment. In today's episode, 7 00:00:29,640 --> 00:00:32,479 Speaker 1: we'll hear from Rebecca Rubin on the holiday box office, 8 00:00:32,640 --> 00:00:36,640 Speaker 1: there's good news from the multiplexes, and Todd Spangler breaks 9 00:00:36,680 --> 00:00:40,680 Speaker 1: down Variety's predictions for the entertainment industry in twenty twenty six. 10 00:00:41,120 --> 00:00:44,040 Speaker 1: Who will be the next boss of Disney? Will Netflix 11 00:00:44,080 --> 00:00:47,560 Speaker 1: fend off paramount to buy Warner Brothers in HBO? We'll 12 00:00:47,600 --> 00:00:50,159 Speaker 1: find out. It's good to be back in action with 13 00:00:50,240 --> 00:00:53,200 Speaker 1: Daily Variety after taking a few weeks off for the holidays. 14 00:00:53,760 --> 00:00:56,160 Speaker 1: Before we get to our interviews, here are a few 15 00:00:56,200 --> 00:00:58,800 Speaker 1: headlines just in this morning that you need to know. 16 00:00:59,800 --> 00:01:03,560 Speaker 1: It's day one for versunt Media, the cables spin off 17 00:01:03,600 --> 00:01:06,760 Speaker 1: of NBC Universal is official now and this is its 18 00:01:06,800 --> 00:01:10,280 Speaker 1: first day trading as a standalone company. The new company 19 00:01:10,400 --> 00:01:15,280 Speaker 1: consists of USA Network, Sci Fi mess now, CNBC and 20 00:01:15,440 --> 00:01:18,640 Speaker 1: other cable channels. Wall Street's reaction so far has been 21 00:01:18,640 --> 00:01:22,479 Speaker 1: pretty tepid, but it's a marathon, not a sprint. Netflix 22 00:01:22,560 --> 00:01:25,679 Speaker 1: had one final Stranger Thing surprise for us after all 23 00:01:25,720 --> 00:01:29,000 Speaker 1: the hoopla around the series finale. A documentary on the 24 00:01:29,040 --> 00:01:32,360 Speaker 1: sleeper hit that came to define the streamer is set 25 00:01:32,400 --> 00:01:35,640 Speaker 1: to bow on January twelfth. John Mayer and McGee have 26 00:01:35,720 --> 00:01:39,200 Speaker 1: acquired the legendary Chaplain Studios law in Los Angeles at 27 00:01:39,240 --> 00:01:42,440 Speaker 1: Librea and Sunset. Over the years, it has been home 28 00:01:42,480 --> 00:01:45,280 Speaker 1: to A and M Records and the Jim Henson Company. 29 00:01:45,880 --> 00:01:48,240 Speaker 1: The new owners plan to restore it for film and 30 00:01:48,280 --> 00:01:52,560 Speaker 1: TV production and music production. My colleague Chris Willman has 31 00:01:52,600 --> 00:01:55,560 Speaker 1: a great interview with Mayer and McGee on all their 32 00:01:55,560 --> 00:01:58,720 Speaker 1: big plans. All of these stories and so much more 33 00:01:58,800 --> 00:02:06,280 Speaker 1: can be found on Variety Dame right now. And now 34 00:02:06,280 --> 00:02:09,480 Speaker 1: it's time for conversations with Friday journalists about news and 35 00:02:09,480 --> 00:02:15,720 Speaker 1: trends in show business. If it's Monday, we're talking box 36 00:02:15,760 --> 00:02:19,080 Speaker 1: office with Rebecca Rubin, Senior film and media reporter and 37 00:02:19,280 --> 00:02:23,119 Speaker 1: our box office chief. She was right about Avatar three 38 00:02:23,320 --> 00:02:26,520 Speaker 1: having legs at the box office, and the year ended 39 00:02:26,560 --> 00:02:29,600 Speaker 1: strong at the specialty box office with good turnouts for 40 00:02:29,680 --> 00:02:33,360 Speaker 1: The Handmaid and Song Sung Blue. Rebecca Rubin, thank you 41 00:02:33,400 --> 00:02:35,320 Speaker 1: so much for joining me, Thank you for having me. 42 00:02:35,360 --> 00:02:38,160 Speaker 1: A happy year saying to you while I was enjoying 43 00:02:38,200 --> 00:02:40,800 Speaker 1: a few weeks of downtimes. You and Brent Lang always 44 00:02:40,880 --> 00:02:44,359 Speaker 1: are sentries watching what's happening at the turnstiles. You were 45 00:02:44,400 --> 00:02:48,120 Speaker 1: so right about Avatar. It didn't have the most eye 46 00:02:48,120 --> 00:02:51,680 Speaker 1: popping opening weekend, but boy it has had legs. Rebecca, 47 00:02:51,840 --> 00:02:53,840 Speaker 1: tell us, what's what you make of the Avatar box 48 00:02:53,880 --> 00:02:55,079 Speaker 1: office after a couple weeks. 49 00:02:55,200 --> 00:02:58,519 Speaker 2: This is always sort of the recurring conversation with these 50 00:02:58,600 --> 00:03:03,240 Speaker 2: Avatar films. People are always quote unquote disappointed about the 51 00:03:03,280 --> 00:03:07,600 Speaker 2: opening weekends, and then light clockwork, they play and play 52 00:03:07,720 --> 00:03:11,720 Speaker 2: in theaters four weeks on end. And it does look 53 00:03:11,800 --> 00:03:15,040 Speaker 2: like that is the case with Avatar, Fire and Ash. 54 00:03:15,120 --> 00:03:17,799 Speaker 2: Now it's in its third weekend of release. It made 55 00:03:17,840 --> 00:03:20,840 Speaker 2: forty million dollars over the weekend, and that's not that 56 00:03:20,960 --> 00:03:24,440 Speaker 2: far off from the second movie, which made forty five 57 00:03:24,520 --> 00:03:28,280 Speaker 2: million in its third weekend in this same post Christmas frame. 58 00:03:28,760 --> 00:03:31,800 Speaker 2: After just eighteen days, this movie has crossed the billion 59 00:03:31,840 --> 00:03:35,560 Speaker 2: dollar benchmark and it's a bit slower than the first 60 00:03:35,560 --> 00:03:38,560 Speaker 2: two films. The first one took seventeen days and then 61 00:03:38,600 --> 00:03:41,920 Speaker 2: the second film took fourteen days, which was very quick. 62 00:03:42,240 --> 00:03:44,600 Speaker 2: There was not really much of a question of whether 63 00:03:44,680 --> 00:03:47,880 Speaker 2: it would reach the billion dollar benchmark. The question now 64 00:03:48,040 --> 00:03:50,760 Speaker 2: is if it has the stamina to reach the two 65 00:03:50,880 --> 00:03:52,240 Speaker 2: billion dollar benchmark. 66 00:03:52,480 --> 00:03:55,120 Speaker 1: Like its predecessors, it just goes to prove what a 67 00:03:55,240 --> 00:03:58,280 Speaker 1: high bar James Cameron has set for himself with his 68 00:03:58,320 --> 00:04:01,440 Speaker 1: own success. How much of that is from domestic or 69 00:04:01,520 --> 00:04:03,200 Speaker 1: is it leaning more toward international. 70 00:04:03,360 --> 00:04:07,840 Speaker 2: These movies always skew really international, and the third film 71 00:04:07,920 --> 00:04:11,480 Speaker 2: is no exception. It has made seven hundred and seventy 72 00:04:11,720 --> 00:04:16,839 Speaker 2: seven million dollars so far internationally and it's made about 73 00:04:16,960 --> 00:04:20,480 Speaker 2: three hundred million dollars domestically, which is a great result. Well, 74 00:04:20,520 --> 00:04:25,040 Speaker 2: it's very lopsided in terms of the overseas appeal, and 75 00:04:25,120 --> 00:04:27,360 Speaker 2: that is really what's going to be key in whether 76 00:04:27,440 --> 00:04:29,719 Speaker 2: or not it gets to two billion. The first movie 77 00:04:29,760 --> 00:04:34,039 Speaker 2: made two billion dollars alone from overseas markets, which is 78 00:04:34,480 --> 00:04:37,200 Speaker 2: hard to wrap your head around. But the second movie 79 00:04:37,240 --> 00:04:41,680 Speaker 2: made one point six billion dollars just from international territories, 80 00:04:41,800 --> 00:04:45,680 Speaker 2: not including North America, so that will really be what's 81 00:04:45,720 --> 00:04:47,480 Speaker 2: going to push you over the edge if it can 82 00:04:47,520 --> 00:04:49,640 Speaker 2: get to that elusive two billion dollar mark. 83 00:04:49,880 --> 00:04:52,160 Speaker 1: Let me ask you just in general, New Year's Eve 84 00:04:52,320 --> 00:04:53,680 Speaker 1: is it a big night for movie going. 85 00:04:53,839 --> 00:04:56,760 Speaker 2: It's not as big as Christmas Day, which of course 86 00:04:56,839 --> 00:04:59,200 Speaker 2: is a very popular time for people to go to 87 00:04:59,240 --> 00:05:03,279 Speaker 2: the movies, But really the entire two weeks from Christmas 88 00:05:03,320 --> 00:05:06,800 Speaker 2: Eve to Year's Day is among the busiest and most 89 00:05:06,839 --> 00:05:11,000 Speaker 2: popular time to go. You see those midweek numbers really strong, 90 00:05:11,279 --> 00:05:15,080 Speaker 2: and so it's that whole chunk of time that's become 91 00:05:15,200 --> 00:05:17,960 Speaker 2: really really important for movie theaters to finish the year strong. 92 00:05:18,279 --> 00:05:21,520 Speaker 1: I personally contributed a little bit to the pot over 93 00:05:21,560 --> 00:05:24,840 Speaker 1: the holiday break. On New Year's Eve, Netflix did a 94 00:05:24,880 --> 00:05:28,000 Speaker 1: big stunt with the Stranger Things finale. Are you able 95 00:05:28,080 --> 00:05:29,440 Speaker 1: to tell how that performed? 96 00:05:29,640 --> 00:05:32,120 Speaker 2: So? Of course, Netflix is not the biggest fan of 97 00:05:32,200 --> 00:05:35,480 Speaker 2: Fox Office, so they do not report grosses like any 98 00:05:35,560 --> 00:05:40,720 Speaker 2: traditional studios. However, what's been reported is that the Stranger 99 00:05:40,800 --> 00:05:45,359 Speaker 2: Things series finale earned roughly twenty five million dollars in 100 00:05:45,440 --> 00:05:50,360 Speaker 2: theaters just over those two days. AMC actually reported that 101 00:05:50,680 --> 00:05:54,159 Speaker 2: the chain generated fifteen million dollars from the two days, 102 00:05:54,200 --> 00:05:58,320 Speaker 2: which is very significant one because AMC has never really 103 00:05:58,400 --> 00:06:02,800 Speaker 2: partnered with Netflix on this scale before, but there's something 104 00:06:02,920 --> 00:06:06,360 Speaker 2: sort of unique done with this where AMC and Cinema 105 00:06:06,680 --> 00:06:10,760 Speaker 2: charged people twenty dollars for a concession voucher instead of 106 00:06:10,760 --> 00:06:13,719 Speaker 2: a movie ticket. Well, Regal, which is another one of 107 00:06:13,760 --> 00:06:16,760 Speaker 2: the big chains, charged eleven dollars, which of course is 108 00:06:16,760 --> 00:06:19,520 Speaker 2: a nod to the character played by Millie Bobby Brown, 109 00:06:19,720 --> 00:06:23,920 Speaker 2: but that's typically a lot less than the nation's average 110 00:06:24,000 --> 00:06:26,800 Speaker 2: movie price. And so again, how many people went to 111 00:06:26,839 --> 00:06:29,560 Speaker 2: see The Stranger Things finale right now is sort of unclear. 112 00:06:29,720 --> 00:06:32,200 Speaker 1: All of those dynamics are going to get very interesting 113 00:06:32,240 --> 00:06:35,080 Speaker 1: if Netflix does in fact become the parent company of 114 00:06:35,080 --> 00:06:37,840 Speaker 1: warnerbrog Let me ask you about Marty Supreme. There's been 115 00:06:37,880 --> 00:06:40,800 Speaker 1: a lot of focus on that. Timothy Chalome is everywhere. 116 00:06:40,920 --> 00:06:42,960 Speaker 1: How's Marty performing at the box office? 117 00:06:43,000 --> 00:06:46,679 Speaker 2: Marty Supreme again had a great hold, just like most 118 00:06:46,680 --> 00:06:49,560 Speaker 2: of the films that are playing right now, and so 119 00:06:49,720 --> 00:06:52,760 Speaker 2: far it has made fifty six million dollars, which is 120 00:06:52,880 --> 00:06:57,239 Speaker 2: a really really great result for an original art house film, 121 00:06:57,320 --> 00:07:00,960 Speaker 2: and I think a lot of the success is attributed 122 00:07:01,000 --> 00:07:06,640 Speaker 2: to Timothy Shaalame, who went to great lengths to market 123 00:07:06,680 --> 00:07:08,960 Speaker 2: this film. He really wanted to make sure it was 124 00:07:08,960 --> 00:07:13,200 Speaker 2: on everyone's radar, did a lot of really unique marketing stunts, 125 00:07:13,240 --> 00:07:15,680 Speaker 2: and so I think it actually did translate to awareness. 126 00:07:15,800 --> 00:07:18,960 Speaker 2: And then on top of that, people really liked the movie. 127 00:07:19,000 --> 00:07:22,560 Speaker 2: It has great reviews, great word of mouth, and so 128 00:07:22,720 --> 00:07:27,320 Speaker 2: you're seeing repeat business and right now, after just two 129 00:07:27,360 --> 00:07:30,440 Speaker 2: weeks of release, it's already one of A twenty four's 130 00:07:30,560 --> 00:07:33,840 Speaker 2: highest grossing films. Now, the catch here is that Marty 131 00:07:33,960 --> 00:07:38,720 Speaker 2: Supreme was really expensive. It cost seventy million dollars to produce. 132 00:07:38,920 --> 00:07:41,680 Speaker 2: It's the most expensive film that A twenty four has 133 00:07:41,720 --> 00:07:44,600 Speaker 2: ever made, and so it's doing very well, but it 134 00:07:44,680 --> 00:07:48,480 Speaker 2: needs to really stick around in theaters to justify its budget. 135 00:07:48,760 --> 00:07:52,320 Speaker 1: Do you think with Marty Supreme a strong awards season showing, 136 00:07:52,360 --> 00:07:54,960 Speaker 1: which it certainly seems poised for, that like, will that 137 00:07:55,040 --> 00:07:56,720 Speaker 1: make the difference in box office? 138 00:07:56,800 --> 00:07:59,600 Speaker 2: I think it falls into the category of one battle 139 00:07:59,640 --> 00:08:03,120 Speaker 2: after another where it did very well in terms of 140 00:08:03,240 --> 00:08:06,760 Speaker 2: movie theater turnout, it just didn't necessarily turn a profit 141 00:08:06,840 --> 00:08:10,480 Speaker 2: for the studio because it was so expensive. And so 142 00:08:11,120 --> 00:08:14,040 Speaker 2: these both could be examples of those movies that are 143 00:08:14,160 --> 00:08:17,600 Speaker 2: valuable in ways beyond just the balance sheet if they 144 00:08:17,640 --> 00:08:20,640 Speaker 2: do end up being big Oscar contenders, which it looks 145 00:08:20,680 --> 00:08:23,320 Speaker 2: like both Marty Supreme and One Battle after Another are 146 00:08:23,400 --> 00:08:24,120 Speaker 2: shaping up to be. 147 00:08:24,840 --> 00:08:27,280 Speaker 1: Let me close by asking you what are you looking 148 00:08:27,320 --> 00:08:29,320 Speaker 1: forward to in the rest of this month at the 149 00:08:29,360 --> 00:08:30,200 Speaker 1: box office. 150 00:08:30,560 --> 00:08:33,880 Speaker 2: There's not a ton coming out in January, so it'll 151 00:08:33,880 --> 00:08:36,480 Speaker 2: be really interesting to see how high some of these 152 00:08:36,600 --> 00:08:39,880 Speaker 2: Christmas and Thanksgiving movies can get by the end of 153 00:08:39,880 --> 00:08:43,040 Speaker 2: the month. For Avatar, what will be interesting is the 154 00:08:43,040 --> 00:08:45,360 Speaker 2: first two movies were number one at the box office 155 00:08:45,440 --> 00:08:49,240 Speaker 2: for seven weekends, so I'm curious to see whether or 156 00:08:49,320 --> 00:08:53,400 Speaker 2: not Fire and Ash will either match or surpass that record. 157 00:08:53,920 --> 00:08:55,720 Speaker 2: And then there are a bunch of other films that 158 00:08:55,760 --> 00:08:59,920 Speaker 2: are doing really well. The Housemaid, which is Lion's Gate 159 00:09:00,160 --> 00:09:04,520 Speaker 2: adaptation of the very popular book. It's starring Sidney Sweeney 160 00:09:04,520 --> 00:09:07,880 Speaker 2: and Amanda Safreed, and it has made so far seventy 161 00:09:07,880 --> 00:09:11,040 Speaker 2: five million dollars domestically and one hundred and thirty three 162 00:09:11,080 --> 00:09:14,960 Speaker 2: million dollars worldwide, and it costs just thirty five million 163 00:09:15,040 --> 00:09:18,400 Speaker 2: dollars to produce, and so it's really drying out that 164 00:09:19,000 --> 00:09:22,440 Speaker 2: a female audience, and it's just a fun to watch 165 00:09:22,520 --> 00:09:25,240 Speaker 2: with a crowd, and so it's encouraging to see people 166 00:09:25,360 --> 00:09:28,280 Speaker 2: come out for a movie like that. And then Song 167 00:09:28,400 --> 00:09:32,800 Speaker 2: Sung Blue, which is the musical drama with Hugh Jackman 168 00:09:32,920 --> 00:09:36,959 Speaker 2: and Kate Hudson. It's chugging along. It's made twenty five 169 00:09:37,000 --> 00:09:41,000 Speaker 2: million dollars domestically and thirty million globally so far. And 170 00:09:41,400 --> 00:09:44,320 Speaker 2: what's interesting is it's performing really well in the middle 171 00:09:44,360 --> 00:09:48,720 Speaker 2: of the country. The top markets are Chicago, Milwaukee, Salt 172 00:09:48,800 --> 00:09:49,319 Speaker 2: Lake City. 173 00:09:49,600 --> 00:09:52,800 Speaker 1: Rebecca, thank you as always and look forward to checking 174 00:09:52,840 --> 00:09:53,680 Speaker 1: in with you next week. 175 00:09:53,760 --> 00:09:54,640 Speaker 2: Thank you for having me. 176 00:09:59,120 --> 00:10:02,600 Speaker 1: Now we'll turn to Todd Spangler, Variety's business editor. It's 177 00:10:02,679 --> 00:10:05,640 Speaker 1: the start of a new year, so it's time for predictions. 178 00:10:05,760 --> 00:10:08,480 Speaker 1: Todd Spangler, thank you for joining me here today to 179 00:10:08,679 --> 00:10:10,040 Speaker 1: do a little crystal ballgazing. 180 00:10:10,320 --> 00:10:11,360 Speaker 3: Yeah, happy new Year. 181 00:10:11,480 --> 00:10:13,560 Speaker 1: Well, you got a head start on this because you 182 00:10:13,559 --> 00:10:17,320 Speaker 1: wrote a great piece for Variety's first edition of twenty 183 00:10:17,360 --> 00:10:20,760 Speaker 1: twenty six about media predictions. Somewhere there's a law of 184 00:10:20,840 --> 00:10:24,760 Speaker 1: journalism that as the calendar turns the page, reporters must 185 00:10:24,800 --> 00:10:27,280 Speaker 1: put their heads together and try to predict some events 186 00:10:27,320 --> 00:10:29,840 Speaker 1: in the business that we cover. So let's start with 187 00:10:30,360 --> 00:10:34,880 Speaker 1: the succession drama that could be its own HBO series. 188 00:10:35,520 --> 00:10:38,920 Speaker 1: There is a lot of focus obviously on who is 189 00:10:38,960 --> 00:10:41,640 Speaker 1: going to be the next leader of the Walt Disney Company, 190 00:10:42,240 --> 00:10:46,160 Speaker 1: and the time is ticking down because Disney put their 191 00:10:46,200 --> 00:10:49,240 Speaker 1: own timeframe on it as saying that they expect to 192 00:10:49,280 --> 00:10:52,880 Speaker 1: make this decision in early twenty twenty six. Well, we 193 00:10:52,960 --> 00:10:56,679 Speaker 1: are in early twenty twenty six. Is there any scenario 194 00:10:57,160 --> 00:10:59,120 Speaker 1: where you see them delaying this at all? 195 00:11:00,000 --> 00:11:03,559 Speaker 3: No, that would be surprising because everybody is expecting it, 196 00:11:03,960 --> 00:11:06,960 Speaker 3: and Iiger is, you know, lame duck CEO. They're trying 197 00:11:06,960 --> 00:11:10,480 Speaker 3: to be very deliberate and predictable about what happens. I 198 00:11:10,480 --> 00:11:13,960 Speaker 3: think it would be worrisome if they, for whatever reason, 199 00:11:14,200 --> 00:11:15,560 Speaker 3: try to defer this decision. 200 00:11:16,760 --> 00:11:19,760 Speaker 1: As respected as Bob Biger is, his stewardship of the 201 00:11:19,840 --> 00:11:23,160 Speaker 1: company has been the stuff of triple digit growth and 202 00:11:23,280 --> 00:11:26,840 Speaker 1: stock increases and everything, but at some point you do 203 00:11:26,920 --> 00:11:29,360 Speaker 1: have to show that you do have a plan. Do 204 00:11:29,400 --> 00:11:32,559 Speaker 1: you see a scenario where they might name a new 205 00:11:32,679 --> 00:11:36,800 Speaker 1: CEO or CEOs but extend him for another year as 206 00:11:36,880 --> 00:11:39,360 Speaker 1: chairman to have that steady hand on the tiller, or 207 00:11:39,360 --> 00:11:42,240 Speaker 1: do you think that's what twenty twenty six is about. 208 00:11:42,520 --> 00:11:45,040 Speaker 3: Iiger could steer on the board. I don't know if 209 00:11:45,080 --> 00:11:48,280 Speaker 3: he becomes chairman, but one year period is supposed to 210 00:11:48,320 --> 00:11:51,600 Speaker 3: be a long period of transition where Iger' is still there. 211 00:11:51,640 --> 00:11:54,880 Speaker 3: And I think the Wall Street smart money is on 212 00:11:55,080 --> 00:12:00,319 Speaker 3: Josh Tomorrow, who's the head of Parks and Experiences, he Alservices, 213 00:12:00,440 --> 00:12:03,400 Speaker 3: and I think he's as well rounded an executive as 214 00:12:03,440 --> 00:12:05,679 Speaker 3: they could find, because does he really has such a 215 00:12:05,679 --> 00:12:09,520 Speaker 3: diverse collection of businesses And we've had more than a 216 00:12:09,600 --> 00:12:13,000 Speaker 3: year to play this parlor game of who's head who's 217 00:12:13,120 --> 00:12:16,600 Speaker 3: behind This decision will have ripple effects not just in Disney, 218 00:12:16,640 --> 00:12:17,840 Speaker 3: but across the industry. 219 00:12:17,880 --> 00:12:21,319 Speaker 1: I think absolutely the biggest ripple is the Dana Walden 220 00:12:21,360 --> 00:12:25,520 Speaker 1: of it all, who now oversees enormous turf in overseeing 221 00:12:25,559 --> 00:12:28,960 Speaker 1: almost all of television other than ESPN, and you know 222 00:12:29,320 --> 00:12:32,480 Speaker 1: that's an enormous gig. And if in fact Josh Tomorrow 223 00:12:32,559 --> 00:12:34,640 Speaker 1: is the choice, and there will be ripple effects among 224 00:12:34,679 --> 00:12:37,559 Speaker 1: the senior executives under all of those folks, as we've 225 00:12:37,600 --> 00:12:40,920 Speaker 1: seen a million times with major management shifts at companies. 226 00:12:41,040 --> 00:12:44,120 Speaker 1: But it's not done. Till it's done, let's talk about 227 00:12:44,160 --> 00:12:47,520 Speaker 1: the other big studio drama going on, the fight for 228 00:12:47,600 --> 00:12:51,920 Speaker 1: Warner Brothers and HBO between Netflix and Paramount's guidance. Basically, 229 00:12:52,240 --> 00:12:55,439 Speaker 1: the ball is now right now in Warner Brothers Discoveries. 230 00:12:55,679 --> 00:12:59,360 Speaker 1: They need to respond to the latest offer from Paramount 231 00:12:59,480 --> 00:13:02,840 Speaker 1: and David Ellison Camp. What do you think we're going 232 00:13:02,920 --> 00:13:04,280 Speaker 1: to hear from Warners this week? 233 00:13:04,440 --> 00:13:08,000 Speaker 3: I mean, what did Paramount alter or update in their offer? 234 00:13:08,080 --> 00:13:11,880 Speaker 3: It was really just saying Larry Ellison peaky swears that 235 00:13:12,160 --> 00:13:14,800 Speaker 3: he is good for forty billion dollars. So that was 236 00:13:14,920 --> 00:13:18,560 Speaker 3: one thing that the Warner Brothers board called out in 237 00:13:18,640 --> 00:13:21,560 Speaker 3: rejecting their previous offer. But they didn't offer more money. 238 00:13:21,840 --> 00:13:24,360 Speaker 3: So I don't see how that moves the needle just 239 00:13:24,400 --> 00:13:28,040 Speaker 3: to say, look, we're fully guaranteeing it now the way 240 00:13:28,080 --> 00:13:31,079 Speaker 3: that you wanted us to Warner where this Discovery can 241 00:13:31,080 --> 00:13:34,199 Speaker 3: go back and say all things being equal and fixes 242 00:13:34,240 --> 00:13:36,640 Speaker 3: the superior offer because of X, Y and Z, you know, 243 00:13:36,880 --> 00:13:39,080 Speaker 3: they've already walked through it, they've already spelled it out. 244 00:13:39,280 --> 00:13:42,160 Speaker 3: Seems clear that unless the Ellisons are going to come 245 00:13:42,200 --> 00:13:47,760 Speaker 3: back with a materially higher offer, it's a non starter. 246 00:13:47,960 --> 00:13:51,000 Speaker 1: It's interesting that I think the Ellisons saw they're all 247 00:13:51,120 --> 00:13:54,120 Speaker 1: cash offer cash on the barrel head. I think They 248 00:13:54,160 --> 00:13:58,240 Speaker 1: saw that, among other things, as a really attractive option, 249 00:13:58,400 --> 00:14:01,560 Speaker 1: but that actually seems to be an achilles heel for 250 00:14:01,640 --> 00:14:04,480 Speaker 1: them in the sense of Warner Brothers Discovery board is 251 00:14:04,480 --> 00:14:08,000 Speaker 1: asking logical questions about, Okay, who's financing it? Where is 252 00:14:08,040 --> 00:14:11,520 Speaker 1: it coming? The Ellisons have put together a consortium of 253 00:14:11,600 --> 00:14:14,680 Speaker 1: firms that have committed to financing it. You know, the 254 00:14:14,760 --> 00:14:17,240 Speaker 1: Ellisons have a lot of weight in this world. But 255 00:14:17,360 --> 00:14:20,440 Speaker 1: I think this sheer number of firms has given warners 256 00:14:20,520 --> 00:14:23,000 Speaker 1: some pause, like whoa things have to go right within 257 00:14:23,000 --> 00:14:26,680 Speaker 1: a half dozen companies rather than Netflix has its money 258 00:14:26,680 --> 00:14:29,760 Speaker 1: together and the value of Netflix stock. This is not 259 00:14:29,880 --> 00:14:33,560 Speaker 1: Netflix twenty twelve. This is Netflix twenty twenty six. It's 260 00:14:33,560 --> 00:14:36,520 Speaker 1: had more than a decade of being a blue chip 261 00:14:36,600 --> 00:14:39,200 Speaker 1: stock that is attractive to the Warner Brothers board that 262 00:14:39,480 --> 00:14:43,160 Speaker 1: this enlarged company takes off, that the equity component of 263 00:14:43,200 --> 00:14:46,280 Speaker 1: this could be really, really beneficial for all shareholders. Right, 264 00:14:47,640 --> 00:14:49,440 Speaker 1: do you have a guest or do you think that 265 00:14:49,640 --> 00:14:51,560 Speaker 1: there are more wild guards to come? 266 00:14:52,000 --> 00:14:54,880 Speaker 3: My best guess right now is that Netflix closes this deal. 267 00:14:55,560 --> 00:14:58,080 Speaker 3: I just don't see unless they do go higher and 268 00:14:58,080 --> 00:15:01,520 Speaker 3: they've already bid up the shares. Warner Bers Discovery from 269 00:15:01,680 --> 00:15:03,320 Speaker 3: where they were at the beginning of the year. It 270 00:15:03,360 --> 00:15:06,760 Speaker 3: was like fifteen bucks, thirteen Bucks, and it's now close 271 00:15:06,800 --> 00:15:07,480 Speaker 3: to thirty bucks. 272 00:15:07,520 --> 00:15:11,200 Speaker 1: Share well, there is no shortage of things to cover, 273 00:15:11,680 --> 00:15:14,640 Speaker 1: and Todd, I'm looking forward to seeing you in person 274 00:15:14,840 --> 00:15:17,960 Speaker 1: in a couple of days at the Consumer Electronics Show. 275 00:15:18,040 --> 00:15:20,000 Speaker 1: For going on ten years now, Variety has done a 276 00:15:20,040 --> 00:15:24,120 Speaker 1: day long conference as part of the Consumer Electronics Show program. 277 00:15:24,240 --> 00:15:26,640 Speaker 1: This year we're doing a day and a half with 278 00:15:26,720 --> 00:15:30,400 Speaker 1: an emphasis on our second day on creators. Really looking 279 00:15:30,440 --> 00:15:34,960 Speaker 1: forward to more crystal ball gazing, more informed discussion. 280 00:15:35,280 --> 00:15:36,600 Speaker 3: Yeah, it should be great. 281 00:15:36,920 --> 00:15:39,120 Speaker 1: Todd. As always, thank you for keeping an eye on 282 00:15:39,160 --> 00:15:42,120 Speaker 1: things and very curious to see what the mood is 283 00:15:42,240 --> 00:15:48,440 Speaker 1: and what people are talking about at CES. As we 284 00:15:48,520 --> 00:15:52,120 Speaker 1: close out today's episode, here's a few things we're watching for. 285 00:15:52,640 --> 00:15:55,360 Speaker 1: It's going to be a hugely busy week of events. 286 00:15:55,560 --> 00:15:58,520 Speaker 1: On Tuesday, we have the Golden Eve Celebration as part 287 00:15:58,560 --> 00:16:02,120 Speaker 1: of Golden Globes Week, Ellen Myern and Sarah Jessica Parker 288 00:16:02,280 --> 00:16:05,840 Speaker 1: will be celebrated for their long careers and their good works. 289 00:16:06,200 --> 00:16:09,360 Speaker 1: On Wednesday and Thursday, as you heard earlier, Variety is 290 00:16:09,400 --> 00:16:13,040 Speaker 1: hosting our annual Summit at the Consumer Electronics Show, We'll 291 00:16:13,080 --> 00:16:15,480 Speaker 1: be coming to you from Sin City on those days. 292 00:16:15,560 --> 00:16:18,800 Speaker 1: The weekend brings a swirl of parties leading into Sunday's 293 00:16:18,800 --> 00:16:21,720 Speaker 1: Golden Globe Awards. It's a great time to take the 294 00:16:21,760 --> 00:16:24,760 Speaker 1: pulse of the industry and hopefully pick up tips before 295 00:16:24,800 --> 00:16:28,240 Speaker 1: we go. Congrats to actor Racy Horn, the star of 296 00:16:28,280 --> 00:16:31,920 Speaker 1: Apple TV's Pluribus, won Best Actress in a TV Drama 297 00:16:32,240 --> 00:16:36,200 Speaker 1: for her incredible performance so deserved. Thanks for listening. This 298 00:16:36,320 --> 00:16:39,400 Speaker 1: episode was written and reported by me Cynthia Littleton, with 299 00:16:39,560 --> 00:16:44,320 Speaker 1: contributions from Rebecca Rubin and Todd Spangler. Stick's next hick Picks. 300 00:16:44,680 --> 00:16:47,200 Speaker 1: Please leave us a review at the podcast platform of 301 00:16:47,200 --> 00:16:50,280 Speaker 1: your choice, and please tune in tomorrow for another episode 302 00:16:50,280 --> 00:16:51,120 Speaker 1: of Daily Variety.