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Speaker 1: Welcome to Daily Variety, your daily dose of news and

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Speaker 1: analysis for entertainment industry insiders. It's Wednesday, September seventeenth, twenty

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Speaker 1: twenty five. I'm your host, Cynthia Lyttleton. I am co

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Speaker 1: editor in chief of Variety alongside Ramin Setuda. I'm in

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Speaker 1: LA He's in New York, and Variety has reporters around

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Speaker 1: the world covering the business of entertainment. In today's episode,

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Speaker 1: will hear from Sherry Redstone on her new investment in

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Speaker 1: Israeli production Banner Support. The former Paramount Global chair explains

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Speaker 1: what drew her to the company and how Sippor's work

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Speaker 1: in content dovetails with the focus of her philanthropic work.

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Speaker 1: And then we'll hear from Variety's Business editor Todd Spangler

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Speaker 1: and TV News editor Joe Otterson. I'm the latest buzz

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Speaker 1: around Sharry Redstone's old shop as Paramount prepares to make

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Speaker 1: an offer for Warner Brothers Discovery. And we'll talk about

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Speaker 1: the mood at CBS these days after the long and

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Speaker 1: bruising Paramount's Guidance merger process. But before we get to that,

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Speaker 1: here are a few headlines just in this morning that

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Speaker 1: you need to know Reese Witherspoon, and Jennifer Anis dinner

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Speaker 1: keeping busy. Apple TV Plus has renewed The Morning Show

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Speaker 1: for season five. Congrats, Michael Ellenberg. The surest sign of

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Speaker 1: the fall is news from Hallmark Channel on its countdown

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Speaker 1: to Christmas schedule. My colleague Emily Longeretta has the scoop

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Speaker 1: on the twenty four movies and other content lined up

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Speaker 1: for Yule Tide season. Another sure sign of the fall

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Speaker 1: is news alerts from corporate giants on third quarter earnings reports.

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Speaker 1: Comcast's third quarter numbers will be out October thirtieth. All

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Speaker 1: of these stories and so much more can be found

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Speaker 1: on Variety dot com Right now. Now we turn to

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Speaker 1: conversations with industry leaders and Variety journalists about news and

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Speaker 1: trends in show business today. Our guest is Sherry Redstone,

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Speaker 1: the former Paramount Global chair who just six weeks ago

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Speaker 1: sold her family's media empire to David Ellison and Skydance Media.

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Speaker 1: Redstone wasn't looking to jump into a big new media

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Speaker 1: business opportunity so quickly, but Sippor was too good for

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Speaker 1: her to pass up. Redstone explains why, and she addresses

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Speaker 1: the challenges facing Israeli businesses amid the humanitarian crisis in

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Speaker 1: Gaza and strife in the region, and she discusses the

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Speaker 1: future of her long running advance at Capital Investment Venture.

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Speaker 1: Sheery Redstone, thank you so much for joining me today.

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Speaker 1: We got the word that you have become a board

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Speaker 1: member and an investor in Suppor, which is a very

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Speaker 1: dynamic production company out of Israel. We did a powerful

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Speaker 1: October seventh dot org documentary that we covered quite a bit. Sherry,

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Speaker 1: tell me what is it about Supor and the management

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Speaker 1: team there that made you want to make this investment

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Speaker 1: and also lend your name and all of the cloud

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Speaker 1: that you bring to their board of directors.

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Speaker 2: I met Emilio right around the time of We Will

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Speaker 2: Dance Again coming out.

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Speaker 1: We work together on getting the premiere on Paramount Plus.

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Speaker 2: And the more I got to know him, the more

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Speaker 2: I got to meet his team and understand what it

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Speaker 2: was that he was doing, the more excited I got

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Speaker 2: about this opportunity. To be honest, I was not looking

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Speaker 2: to get involved in another business. I was really looking

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Speaker 2: to focus on my foundation and the work that I'm doing.

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Speaker 2: But the reality is is a real consistency between the

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Speaker 2: work that he is doing in the work that I

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Speaker 2: am doing in my foundation. They create great content, they

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Speaker 2: have a phenomenal team, they have a differentiated business model,

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Speaker 2: and they have a vision to be the first international

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Speaker 2: production studio out of Israel. And it's not just a vision,

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Speaker 2: it's something they're already executing on and have achieved success with.

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Speaker 1: So it just became very exciting to me.

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Speaker 2: They asked me to come in and cheer the board,

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Speaker 2: and that's what I'm going to do, and working with

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Speaker 2: the incredible team that A Medio has put together and

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Speaker 2: Gideon who has been with him from the beginning, and

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Speaker 2: I think it's a super opportunity.

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Speaker 1: Can you give us a sense of the scope of

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Speaker 1: your involvement.

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Speaker 2: I would say I'm going to give it a significant

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Speaker 2: amount of my time. I look at being involved with

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Speaker 2: them at least on a weekly basis, doing management meetings

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Speaker 2: with the team, working with a Medio in between. I'm

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Speaker 2: bringing somebody with me from National Amusements who I've worked

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Speaker 2: with for years, who's going to also strengthen what we're

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Speaker 2: going to be able to bring to the table.

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Speaker 1: And this is a.

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Speaker 2: Very serious venture for me, both from a business perspective

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Speaker 2: and also because I think there's a real opportunity to

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Speaker 2: create content there that will have an impact. They not

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Speaker 2: only have created commercial content which has a great track record.

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Speaker 2: Bad Voys was one of the top ten global hits

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Speaker 2: on Netflix, but they're also continuing to create documentaries that

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Speaker 2: tell the stories that need to be told. So I

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Speaker 2: am very much all in.

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Speaker 1: They are doing a lot of different genres, which will

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Speaker 1: be good for diversity of the portfolio. What are the

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Speaker 1: advantages for a company that is based in Israel that

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Speaker 1: is aiming for the global market.

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Speaker 2: The reason why I think it's so important to be

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Speaker 2: in Israel and why I think they have done a

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Speaker 2: great job is.

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Speaker 1: That in Israel and Frankly.

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Speaker 2: And other international markets, there's a lot of incredible creative talent,

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Speaker 2: both on the screen and off the screen. There are

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Speaker 2: a lot of people there who know how to tell

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Speaker 2: great stories, and you can tap into that creative talent

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Speaker 2: with a very different financial model than what you have

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Speaker 2: here in the United States. And I think because of

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Speaker 2: some of the challenges that exist in Israel, we work

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Speaker 2: even harder to find the right people to work with.

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Speaker 1: I'm super excited about what we're going to be able

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Speaker 1: to bring to the entertainment world. I know this is

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Speaker 1: a big question, but obviously we are in a moment

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Speaker 1: of just incredible strife right now in the world, and

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Speaker 1: much of it involves Israel, criticism of the government, the

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Speaker 1: war in Gaza. Do you think that the controversy, the

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Speaker 1: drama surrounding the government of Israel are going to make

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Speaker 1: it more challenging for a company like support to grow. Yes,

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Speaker 1: I do.

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Speaker 2: We're seeing the cots that are taking place, just like

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Speaker 2: we've seen on college campuses and everywhere else. But that's

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Speaker 2: exactly why I'm so excited to work with Seapoor and

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Speaker 2: to address these issues and to create content that we

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Speaker 2: might have to fight for distribution, we might have to

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Speaker 2: be aggressive in how we look at it, but that's

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Speaker 2: the opportunity. And you know me for a long time,

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Speaker 2: and I've always said we have a responsibility and an

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Speaker 2: obligation to use our voices.

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Speaker 1: And to use our platforms to make a difference.

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Speaker 2: And I see working with Sport and helping them achieve

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Speaker 2: this success as an opportunity.

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Speaker 1: So I don't want to double down on the challenges.

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Speaker 2: I really want to embrace the opportunity to present a

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Speaker 2: different Israel and to achieve the success I know.

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Speaker 1: We can achieve. You mentioned earlier that the work of

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Speaker 1: support and the focus of their content is very much

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Speaker 1: a fit with a lot of what you're doing through

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Speaker 1: your foundation. Can you elaborate about what are the priorities

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Speaker 1: for that foundation.

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Speaker 2: My foundation is very much focused on addressing the issues

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Speaker 2: of racism and anti semitism that exists around the world today.

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Speaker 2: Also very focused on civic education and bringing people together

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Speaker 2: who can come up with that common vision, who can

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Speaker 2: understand that when you sit across the table from somebody

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Speaker 2: one on one, it's very hard to hate them. So

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Speaker 2: my foundation is very focused on trying to scale one

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Speaker 2: on one relationships to have an impact on the issues

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Speaker 2: that concern all of us. I was just involved with

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Speaker 2: the conference last week in DC called MEAD, which is

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Speaker 2: the Middle East American Dialogue where we bring people together

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Speaker 2: from several countries and we have a discussion and we network.

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Speaker 2: And the programs that I'm creating in my foundation do

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Speaker 2: that both with young children, with teens, with families, with teachers,

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Speaker 2: and I really think we can make a difference one

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Speaker 2: person at a time, but it.

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Speaker 1: Takes a long time. Certainly that work is needed more

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Speaker 1: than ever. Again, I know it's early yet and you

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Speaker 1: just went through a very big transaction, but is there

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Speaker 1: anything at all business wise that is on your reader.

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Speaker 2: Honestly, as I said, I was not looking for another

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Speaker 2: business opportunity. I think right now, I really do want

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Speaker 2: to focus on my foundation, on my family, have a

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Speaker 2: little bit more of a personal life. So you never

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Speaker 2: know what life brings. But as I was not out

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Speaker 2: there looking for support and it just happened, and I

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Speaker 2: don't rule anything out, but I feel like I have

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Speaker 2: a really good life right now. I'm very excited about

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Speaker 2: the work I'm going to be doing in Israel, both

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Speaker 2: with CPOOR and philanthropically. I'm very excited about the work

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Speaker 2: my foundation is doing here in this country and in

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Speaker 2: other countries as well.

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Speaker 1: So I've got my plate pretty fall. We know you're

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Speaker 1: going to stay busy, advance it capital. I know that

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Speaker 1: was really important to you. You seeded a lot of

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Speaker 1: cool companies. Is that still going? It is still existing.

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Speaker 2: Our latest fund is more around crypto and AI, and

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Speaker 2: to be honest, if you want to be involved in

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Speaker 2: crypto and AI, it's something you really need to do

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Speaker 2: full time.

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Speaker 1: You can't kind of dip your feet in.

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Speaker 2: So I'm still very involved with some of our portfolio

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Speaker 2: companies who continue to exist, but my son in law

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Speaker 2: has really taken the lead on a lot of you know,

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Speaker 2: what we're doing going forward.

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Speaker 1: Sure, is there anything else you'd like to say in

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Speaker 1: terms of what you're doing in the immediate future.

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Speaker 2: No, I just ask everybody to, as I said before,

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Speaker 2: use their voices and use their platform to make a

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Speaker 2: better world for the next generation, because we do have

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Speaker 2: an opportunity here, but we have to come together.

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Speaker 1: We can't keep putting ourselves apart. I wholeheartedly agree. Thank

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Speaker 1: you very much, Cynthia. Now we'll hear from Varieties Todd

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Speaker 1: Spangler and Joe Otterson. They break down the latest at

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Speaker 1: the studio and network that Sherry Redstone just sold Paramount

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Speaker 1: has surprised the industry by letting it be known that

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Speaker 1: they are preparing a big money offer to buy Warner

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Speaker 1: Brothers Discovery. Todd Spangler and Joe Otterson thank you both

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Speaker 1: for joining me.

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Speaker 3: Helloi, great to be here. As always, so.

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Speaker 1: Much to talk about. I can't remember a period when

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Speaker 1: more studios and assets have been in play. As regular

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Speaker 1: listeners of Daily Variety know, there's a lot going on

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Speaker 1: with Paramount and sky Dance, those two companies that just

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Speaker 1: came together, and wouldn't you know it, David Ellison has

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Speaker 1: sent their trial balon saying that Paramount is going to

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Speaker 1: field a formal offer for Warner Brothers Discovery in the

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Speaker 1: near future. We're still waiting for that as we record

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Speaker 1: here on Tuesday afternoon, but it is very clear that

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Speaker 1: is in fact happening. Joe. I also want to talk

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Speaker 1: about your story that dug into mood the vibe at CBS.

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Speaker 1: The network was very much in the crosshairs of the

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Speaker 1: merger process between Paramount and skuyd Dance, and so we

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Speaker 1: sent you on a mission to figure out what's the mood.

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Speaker 1: How are people feeling. Let's start on the deal making side.

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Speaker 1: The Dust had just settled a Paramount Skuiddance, and now

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Speaker 1: it seems like David Ellison wants more. Todd, It's been

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Speaker 1: about a week since this news broke. What's really going

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Speaker 1: on here?

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Speaker 4: The more you look at it, the tea leaves suggests

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Speaker 4: that a roll up of Warner Brothers Discovery was in

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Speaker 4: the cards all along. This was the grand vision of

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Speaker 4: David Ellison and the folks at Redbird Capital. Along with you.

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Speaker 4: David's fucktor Larry Ellison one of the richest people in

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Speaker 4: the world, So it makes some sense. It really does

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Speaker 4: to gain scale on streaming and they can consolidate the

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Speaker 4: studio operations really become a major, major player. That's the

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Speaker 4: logic anyway.

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Speaker 1: For a decade now, we've been writing stories saying Paramount

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Speaker 1: is small by comparison to its larger bribles par and

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Speaker 1: in this sale process the skuy Dance Talk Toup Paramount

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Speaker 1: and all of its many assets. It has an enormous library,

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Speaker 1: and that's a huge asset. But this desire so quickly

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Speaker 1: to go after Warner Brothers is both an admission that

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Speaker 1: Paramount on its own is too small to be competitive

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Speaker 1: at the level that David Ellison clearly wants to compete.

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Speaker 1: Now that you've had a chance to report and talk

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Speaker 1: to people, Todd, why are they doing this now versus

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Speaker 1: waiting till sometime next year when Warners is already planning

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Speaker 1: to become a smaller company by spinning off CNN and

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Speaker 1: TNT and TBS and all their other older linear cable

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Speaker 1: networks into a separate company. Why did Ellison make this

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Speaker 1: move now?

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Speaker 4: The street interpret to this as they want to preempt

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Speaker 4: a bidding war for HBO and the streaming assets and

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Speaker 4: the studios side of the business. So by moving now,

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Speaker 4: they get in front of other potential bidders who would

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Speaker 4: want to cherry pick, in the words of one of

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Speaker 4: the analysts, just the most attractive assets and not And

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Speaker 4: by the way, a lot of the dead Warner Brothers

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Speaker 4: has a tremendous amount of debt. It's thirty five point

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Speaker 4: six billion gross debt as at the end of June.

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Speaker 4: A lot of that would be going to discover the

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Speaker 4: Global in this split up plan.

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Speaker 1: That's the name of the channel's company that will sprun off, right, So.

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Speaker 4: The standalone Warner Brothers would be not as highly leveraged

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Speaker 4: and make it a more attractive acquisition target. That would

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Speaker 4: mean a bidding process that might include Netflix, It might

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Speaker 4: include Apple, it might include Comcast or Amazon. Any number

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Speaker 4: of players might really want to go after this incredibly

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Speaker 4: valuable asset, which the market has responded to you driving

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Speaker 4: this time price up.

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Speaker 1: Joe. As I talk to people about this, the thing

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Speaker 1: that I hear, especially here in Hollywood and the talent community,

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Speaker 1: is egad that would take out a whole other buyer

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Speaker 1: that the consolidation of Warner Brothers in Paramount would definitely

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Speaker 1: mean there's one less big buyer in town. What are

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Speaker 1: you hearing?

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Speaker 3: That's definitely a major concern. I mean, you're already seeing

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Speaker 3: this massive contraction that we've been writing about for a

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Speaker 3: long time now in terms of the days of five

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Speaker 3: or six hundred scripted shows on the air are definitely

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Speaker 3: at an end. So now you're talking about fewer shows,

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Speaker 3: lower budgets, smaller writer's room, smaller crews. Everything is just

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Speaker 3: be smaller, be cheaper.

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Speaker 1: Joe. Let's dig a little bit into your CBS story

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Speaker 1: from this past week. What's the basic mood the basic

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Speaker 1: vibe at CBS after a long period of certainty, there

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Speaker 1: is certainty, Paramount is the owner, David Ellison is the

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Speaker 1: new boss. People feeling.

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Speaker 3: The broad answer is the mood is good. People are happy.

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Speaker 3: But as more than one person said to me, it

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Speaker 3: couldn't have gotten much worse. So it was only up

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Speaker 3: from here. People were really struggling under the past regime,

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Speaker 3: and like you said, the uncertainty and just the seemingly

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Speaker 3: unending rounds of layoffs and no one felt safe and

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Speaker 3: just everything was just a complete question mark for such

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Speaker 3: a long time. Yes, there are still layoffs coming under

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Speaker 3: David Ellison the new Skydance regime. But the fact of

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Speaker 3: the matter is like it's meet the new boss, Like

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Speaker 3: everyone is ready to move forward now as opposed to

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Speaker 3: just waiting in the limbo.

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Speaker 1: Do you have a sense do they have a wish

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Speaker 1: CBS have a wish list for what the new regime,

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Speaker 1: what they can do now that they do have a

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Speaker 1: new owner that is pumping new money into the company.

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Speaker 3: I think the biggest thing I took away from speaking

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Speaker 3: with insiders was, you know, if it ain't broke, don't

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Speaker 3: fix it. You know, CBS remains the most watched the

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Speaker 3: broadcast network and CBS show those are consistently at the

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Speaker 3: top of that list. And that's nothing to sneeze at

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Speaker 3: in this day and age. When you can command an

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Speaker 3: audience of seventeen million people a week for a broadcast drama,

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Speaker 3: that is a very very serious number. So I think

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Speaker 3: the general hope is it's going to be you know,

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Speaker 3: let CBS continue on business as usual.

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Speaker 1: Todd, Joe, thank you so much for your time. As

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Speaker 1: we close out today's episode, we have to take a

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Speaker 1: moment to salute the incredible career of Robert Redford. I

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Speaker 1: dove into the Variety archives yesterday after learning the news

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Speaker 1: of his death at age eighty nine. The first mention

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Speaker 1: of Robert Redford in Variety's Pages came in the November fifth,

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Speaker 1: nineteen fifty nine edition. His name is listed in the

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Speaker 1: cast of the Broadway play The Highest Tree. By the

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Speaker 1: following year, Redford was mentioned several times a month in

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Speaker 1: our pages, and from there it was on. He did

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Speaker 1: so much stage work and so many early TV drama

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Speaker 1: anthology shows. What a training ground. From about nineteen sixty

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Speaker 1: five through the late nineteen eighties, Robert Redford had a

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Speaker 1: run of big, big movies that is hard to believe.

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Speaker 1: Downhill Racer, Barefoot in the Park, Which Cassidy and The

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Speaker 1: Sundance Kid, The Sting, All the President's Men on up

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Speaker 1: through the Natural and Out of Africa. It's incredible. Along

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Speaker 1: the way, Redford made time for activision on issues that mattered,

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Speaker 1: and he saw the need for a gathering of independent

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Speaker 1: filmmakers that would become the Sundance Film Festival. What a career,

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Speaker 1: what a legacy. Before we go, congrats to Robbie Henchman.

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Speaker 1: He's been named president of WME's one sixty over ninety

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Speaker 1: unit that represents brands. He's also been up to Senior

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Speaker 1: Partner at WM. Henchman was previously President of IMG Events

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Speaker 1: and Global Partnerships. He started at IMG thirty years ago

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Speaker 1: as an intern at Wimbledon. Thanks for listening. This episode

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Speaker 1: was written and reported by me Cynthia Littleton, with contributions

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Speaker 1: from Todd Spangler and Joe Otterson. Stick Snick's hick Picks.

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Speaker 1: Please leave us a review at the podcast platform of

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Speaker 1: your choice, and please tune in tomorrow for another episode

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Speaker 1: of Daily Variety