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Thursday, May 23, 2024

Are you connected with us on Instagram? Please do so, if you have yet to smash that follow button! Also, a housekeeping note: We will be off Monday, observing the holiday. That means the next time we'll be in your inbox will be Tuesday, after the long weekend.

In this edition: The DOJ sues to break up Live Nation, Elon Musk's legal war on Media Matters leads to layoffs at the nonprofit, "Meet the Press" plans a democracy special, NBCU sells $10 million in BuzzFeed stock after it surged over Vivek Ramaswamy's bid, TikTok introduces measures to curb state-affiliated media, Cassie Ventura breaks her silence, Judd Apatow signs with WME, and so much more. But first, the A1.

THE A1

The Dilemma at WBD

CNN Photo Illustration/David Sherman/NBAE/Getty Images

The situation at Warner Bros. Discovery's TNT network "sucks, plain and simple," Charles Barkley bluntly said Thursday.

The former NBA star and "Inside the NBA" co-host was speaking on "The Dan Patrick Show" about the increasing likelihood that the network will soon lose the rights to air the league's games next year, a prospect that could mark the end of the beloved show on the Turner network. Barkley, who said he feels "so bad for the people" he works with, laid blame at the feet of the "clowns" atop WBD.

"These people I work with, they screwed this thing up — clearly," Barkley unloaded. The host did little to hide his anger as he cited WBD boss David Zaslav's now-infamous 2022 comment that the company didn't "have to have the NBA," suggesting the remark likely "pissed" off NBA commissioner Adam Silver and helped lead to the current situation.

"It sucks for all of us," Barkley added.

The uncertainty and fear voiced by Barkley comes as the NBA moves to renew its broadcast rights with media partners, seeking a significant increase in the cost to air the league's games. WBD, the parent company of CNN and the Turner networks, had an exclusive negotiating window with the NBA to renew its contract, but it expired last month without a deal, allowing other media companies to bid for the broadcast rights.

Bloomberg's Lucas Shaw reported Thursday night that the NBA had asked WBD for $2.3 billion to secure the highly coveted rights, more than $1 billion more than it reportedly pays under its current deal to air the games on TNT, its streaming service Max, and other cable networks. During the negotiation, Zaslav "topped out around" $2.1 billion, Shaw reported.

"The league got up from the table and walked right into the arms of Comcast and Amazon," Shaw wrote.

NBCU, which appears poised to snatch the rights from WBD, offered approximately $2.5 billion a year for the package of games, The Wall Street Journal's Joe Flint, Amol Sharma, and Isabella Simonetti first reported last month. The NBCU offer also includes airing the games on its broadcast network, something that WBD does not have, given that its linear television portfolio only includes cable channels.

Wall Street has responded quite negatively to the possibility WBD, which has built a programming slate around the NBA, could lose the rights to air the games. When The WSJ first broke news about NBCU's bid, WBD's stock price plunged nearly 10% to an all-time low. The stock slightly recovered, but it is still hovering near historic lows, closing Thursday at $7.70 a share.

Spokespeople for WBD and the NBA declined to comment on Thursday.

But WBD executives have tried over the last several weeks to quell investor concerns. Zaslav said on a company earnings call that he remained "hopeful we will be able to reach an agreement that makes sense for both sides." While NBCU's bid far surpasses the current price WBD pays to air the games, WBD executives have repeatedly underscored that the company retains the right to match other offers, perhaps Amazon's, as CNBC's Alex Sherman suggested in a Thursday story. It's possible that Zaslav will be able to find another way to walk away from the intense negotiations with a deal for some games. But as the games slip out of WBD's hands, morale has taken an ugly hit at TNT, as evidenced by Barkley's candid comments.

While WBD maintains the rights to the NCAA March Madness tournament, along with the MLB, NHL and NASCAR — and most recently acquired College Football Playoff games from ESPN — the NBA remains crucial to the media conglomerate. It is, unquestionably, the crown jewel of WBD's sports portfolio. And TNT has built a programming slate around the NBA games, most notably the highly rated "Inside the NBA" show. In fact, Barkley just signed a new, 10-year contract in 2023.

Moreover, WBD struck a landmark deal with Disney and Fox Corp. earlier this year to launch Venu, a forthcoming joint sports streamer. Losing the rights to NBA games could throw aspects of that business partnership into question. That's not to mention that WBD's flagship streaming service, Max, has been advertising live sports to consumers as a key differentiator from other platforms. Losing the NBA would be a big blow to that pitch.

Gunnar Wiedenfels, WBD's chief financial officer, acknowledged this week at the J.P. Morgan's Technology, Media & Communications conference that "sports are a very important category" for the company and it remains "fully committed to a sports strategy." But Wiedenfels stressed the importance of financial restraint when inking such deals.

"What I also will say is we're always going to be disciplined," Wiedenfels said. "It's very easy with sports rights to burn a lot of money. And there's also an opportunity to to get your hands on some of the most emotional, most coveted products from an audience perspective. So you've got to be disciplined and think through all the scenarios."

In other words, WBD is facing a major dilemma: Fork over much more to the NBA to try to match a deal on the table, or end the company's nearly-four decade relationship with the league.

——— BELOW THE FOLD ———

CNN Photo Illustration/Michael Campanella/TAS24/Getty Images

USA vs. Live Nation: Upsetting the Swifties was not a good idea, as Live Nation is learning the hard way. On Thursday, the Justice Department sued the Ticketmaster parent, alleging it has wielded its "monopolist" status in an "anticompetitive" manner that has harmed fans and artists alike. The Merrick Garland-led DOJ, as a result, is seeking to break up the company, which has found itself facing heightened scrutiny after its disastrous release of tickets for Taylor Swift's "Eras" concert tour. "Conduct that subverts competition here not only harms the structure of the live music industry and the countless people that work in that industry, but also damages the foundation of creative expression and art that lies at the heart of our personal, social, and political lives," the DOJ said in its seismic lawsuit. Live Nation responded to the suit by calling it "baseless" and saying it "won't solve the issues fans care about relating to ticket prices, service fees, and access to in-demand shows." CNN's Brian Fung, Hannah Rabinowitz, and Sabrina Souza have more here.

► While Live Nation is obviously not pleased with the DOJ's decision, its competitors are cheering on Garland. Stubhub released a statement that said, "For nearly fifteen years, the Ticketmaster and Live Nation monopoly has ignored the fan experience: fans have been limited to a singular platform only to suffer through a consumer experience that fails them repeatedly. We hope it creates a healthier ticketing market, one that empowers competition, drives innovation, and places the fan experience at the forefront."

THE INDUSTRY

THE FOURTH ESTATE

"Epic cowardice at NPR": Erik Wemple skewers NPR leadership in brutal terms for erecting new bureaucracy in the newsroom after Uri Berliner's essay: "Who is NPR trying to appease? From all appearances, Republicans." (WaPo)
A THR/Morning Consult poll looked at which news anchors audiences trust most. Of the many findings, it found that Lester Holt is the most-trusted of the "big three" evening news anchors and that Anderson Cooper is the most-trusted on cable news. (THR)
Pete Brown published a helpful overview of all the various A.I. deals publishers have struck with technology companies. (CJR)
First in Reliable | The Ankler will host a "Documentary Spotlight" event with Thom Powers' "Pure Nonfiction" in Los Angeles on June 9. The event will feature a number of panels and remarks, followed by a reception, at NeueHouse Hollywood. Janice Min said she is thrilled to gather the "spectacular line-up" for an "afternoon of powerful discussions."
Semafor is launching "Mixed Signals," a media-focused podcast hosted by Ben Smith and Nayeema Raza. (Semafor)
Gina Chua, Semafor's executive editor, told Andrew Murfett about how she accidentally entered journalism. (LinkedIn)

THE BIZ

NBCU sold $10 million in BuzzFeed stock Wednesday after shares surged following news that right-wing conspiracy theorist Vivek Ramaswamy had taken an activist stake, Alex Weprin reported. (THR)
📈 Shares in Lionsgate are up nearly 4% in after-hours trading after it shrunk its quarterly loss to $39.5 million. (The Wrap)

MEDIA MOVES

The NYT hired Masha Gessen as an opinion columnist, hired Mona Lalwani as a senior executive producer for reporter video, and hired Andrew Wilcox as director of video operations and strategy. (NYT/NYT)
The WaPo upped Reem Akkad to senior international editor. (WaPo)
Bloomberg named Alex Wickham its U.K. political editor. (TBN)

THE INFO WARS

CNN Photo Illustration

Making Matters Worse: The progressive watchdog Media Matters on Thursday laid off more than a dozen staffers as the non-profit grapples with the high costs related to Elon Musk's legal war. "We're confronting a legal assault on multiple fronts and given how rapidly the media landscape is shifting, we need to be extremely intentional about how we allocate resources in order to stay effective," Angelo Carusone, the group's president, said in a statement. "Nobody does what Media Matters does. So, we're taking this action now to ensure that we are sustainable, sturdy and successful for whatever lies ahead."

Musk holds significant disdain for the organization after it published reports showing hate speech and conspiracy theories flourishing on X since the billionaire took control of the platform. Not only has Musk filed a lawsuit against Media Matters, but GOP state attorneys general have also targeted the group over its reporting on X. Despite having insurance, the legal war has weighed heavily on Media Matters, prompting the painful Thursday cuts to ensure the organization has enough resources to fight the sustained assault.

🔎 Zooming in: Suffice to say, making Media Matters bleed like this was the entire goal of Musk, who claims to be a free-speech absolutist but regularly takes action against speech he does not like. It is a reminder of how the ultra rich can deploy their endless resources to stifle free speech, even if they know that they will ultimately fail in court. As one laid off Media Matters staffer, Katherine Abughazaleh, wrote on Threads, "There's a reason far-right billionaires attack Media Matters with armies of lawyers: They know how effective our work is, and it terrifies them (him)."

IN THE BATTLEFIELD

"We want your fear": Steve Bannon, continuing to say the quiet part aloud, threatened Donald Trump's critics again on his "War Room" podcast, vowing to "hold everybody responsible that put this republic in the situation its in today." (Mediaite)
George Stephanopoulos, speaking with David Axelrod on "The Axe Files" podcast, discussed how the media should approach covering Trump: "We have to make sure that we don't equate trying to overturn an election with tax policy. You can't pretend they exist on the same level." (CNN)
"Meet the Press" announced it will air a special edition of the program on Sunday, focusing on threats to democracy. The special will feature moderator Kristen Welker interviewing a bipartisan panel of secretaries of state, disinformation experts, and others. (NBC)
CNN, MSNBC, and Fox News have all seen ratings bumps amid their coverage of Trump's trial, Natalie Korach observed. (The Wrap)
MSNBC, working to take advantage of viewer interest, is planning a prime time special for Sunday, June 2, called "Prosecuting Donald Trump: Witness to History." (THR)
Trump "has now amplified QAnon-promoting accounts over 800 times on Truth Social," Alex Kaplan reported. (MMFA)
Trump again claimed that if he wins office, Russia will release jailed Wall Street Journal reporter Evan Gershkovich. (Guardian)
It appears that decades later, Tucker Carlson has still not gotten over his infamous "Crossfire" beatdown. The Fox News host turned online vlogger said he has "such contempt" for Jon Stewart, whom he described as a "dumb person posing as a smart person," that he would struggle to interview him. (Mediaite)
Bush on Bush comms violence: Ari Fleischer went after Nicolle Wallace for calling the Trump movement a "cult." (Mediaite)

THE VALLEY

Barbara Munker/picture alliance/Getty Images

A Hollywood Harvest: Google and Meta want to use television shows and films to train forthcoming text-to-video bots, similar to OpenAI's Sora. That's according to Bloomberg's Lucas Shaw who reported Thursday that both companies have held such discussions with major Hollywood studios, offering "tens of millions of dollars to partner with studios in some capacity." Whether the major studios opt to work with Google and Meta is another story. As Shaw noted, "executives worry that licensing conversations will lead to tension between studios and their creative partners." Read Shaw's story.

TOO MANY TABS

The actress who voiced "Sky" was hired months before Sam Altman first contacted Scarlett Johansson, Nitasha Tiku reported. (WaPo)
Regardless, the OpenAI drama has "rekindled fear in Hollywood," Dawn Chmielewski and Anna Tong reported. One executive told the duo that it "puts a human face on it" and has struck "a real chord." (Reuters)
Peter Kafka pointed out that OpenAI's decision to blame the whole fiasco on incompetence is alarming given the company's ambitions to win users' trust and weave itself into our daily lives. (Business Insider)
Nathaniel Whittermore noted that the OpenAI-News Corporation deal is about "turning ChatGPT into your primary gateway to the rest of the world. ... That's what these deals with Reddit, News Corp and others are really about. It's about — to crib Google's mission — organizing the world's information." (PYMNTS)
Switching gears: TikTok introduced new measures that aim to limit the reach of Russian and Chinese state-affiliated media accounts. (NYT)
The ByteDance-owned company also announced it removed thousands of accounts belonging to 15 covert influence operations in Q1. (WaPo)
Of note: TikTok has "seen an uptick of right-wing, pro-Trump influencers since the last presidential election," Anjali Huynh reported. (NYT)
Elon Musk's X is "hiding likes to encourage 'edgy' engagement," Umar Shakir reported. (The Verge)
Meta "created an A.I. advisory council that's composed entirely of White men," Clare Duffy reported. (CNN)
Google and Epic Games continue to battle in court, with a judge weighing the latter's demands. (AP)

CURTAIN CALL

CNN Photo Illustration/Taylor Hill/FilmMagic/Getty Images

Cassie Speaks Out: Singer Cassie Ventura broke her silence Thursday, expressing gratitude to supporters for "all of the love" sent her way in recent days. The message comes after CNN's Elizabeth Wagmeister obtained disturbing footage of Ventura's then-boyfriend, Sean "Diddy" Combs, violently assaulting her in 2016 at a hotel. "Domestic Violence is THE issue," Ventura wrote in her statement. "It broke me down to someone I never thought I would become. With a lot of hard work, I am better today, but I will always be recovering from my past." Ventura said her "only ask" is that "EVERYONE open your heart to believing victims the first time." CNN's Lisa Respers France has more here.

OFF STAGE

Pixar's "Inside Out 2" is eyeing an $80 to $85-million box office opening. That would make it the biggest opening of 2024. (Deadline)
That said, Jeremy Fuster noted that "theaters are facing the worst Memorial Day weekend the box office has seen since 1999." (The Wrap)
Judd Apatow signed with WME following the conclusion of his 30-year relationship with UTA. (Deadline)
This interview is worth a watch: Jeremy Renner appearing on "The Tonight Show" recounted to Jimmy Fallon the harrowing details of his near-fatal encounter with a snowplow and the lessons learned. (The Wrap)
Warner Bros. Pictures dropped the official trailer to Tim Burton's "Beetlejuice Beetlejuice," starring Michael Keaton. (YouTube)
Rupert Friend will star opposite Scarlett Johansson and Jonathan Bailey in Universal Pictures' upcoming "Jurassic World." (THR)
Patrick Gibson, Christian Slater, and Molly Brown have been tapped to star in Showtime's "Dexter" prequel. (THR)
Netflix's live-adaptation of "One Piece" was the streamer's most-watched show for 2023's second half, pulling in 71.6 million views. (The Wrap)
Of the HBO shows that Warner Bros. Discovery licensed to Netflix, "Ballers" with Dwayne "The Rock" Johnson has thus far performed the best. (Deadline)
Lovett or Leave It: Jon Lovett, the Obama speechwriter-turned-"Pod Save America" co-host, will be a contestant on "Survivor." (THR)
Prime Video dropped the trailer for "I Am: Celine Dion." (YouTube)
Oasis will reissue "Definitely Maybe," the band's debut studio album, to celebrate its 30th anniversary. (Pitchfork)

Thank you for reading! This newsletter was edited by Jon Passantino and produced with the assistance of Liam Reilly. Have feedback? Send us an email. You can follow us on Instagram, Threads, and LinkedIn. We will see you back in your inbox next week.

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