Overview of The Town with Matt Belloni
This episode covers two major Hollywood stories: Warner Bros. Discovery’s shareholder approval of its sale to Paramount/Skydance and the Ellison family, and the lead-up to the release of Michael, the Michael Jackson biopic. Matt Belloni and guest Liz Hoffman dig into the Wall Street and corporate-governance implications of the Warner deal, while the second half shifts to the film’s premiere reaction and the messy history behind the project’s script and creative direction.
Warner Bros. Discovery Sale: One Big Step Closer
Shareholder approval and what it means
- Warner Bros. Discovery shareholders overwhelmingly approved the $110 billion sale.
- The deal values the company at roughly $31 per share, a huge premium over where the stock traded before the Ellisons entered the picture.
- The transaction is still not done:
- regulatory hurdles remain,
- opposition campaigns are still active,
- and the deal is expected to close in Q3 if it stays on track.
Why Wall Street sees this as a landmark deal
- Liz Hoffman says the deal is being watched as a major test of whether old-line media assets still have meaningful value.
- If the merger works, it could encourage more consolidation in media.
- If it fails, it could become another cautionary tale in the long history of media M&A disasters.
The Netflix factor
- A major theme is Netflix’s role in forcing the price higher and raising strategic questions about itself.
- Netflix reportedly wanted Warner’s library/content assets, but the process created a weird side effect:
- It made Netflix look like it might need a legacy studio more than it had previously admitted.
- It raised questions about engagement, content strategy, and how Netflix measures success.
- The episode notes that Netflix’s aggressive interest may have increased the deal price without fully helping its own strategic story.
David Zaslav’s Pay Package and the Tax Gross-Up Controversy
Shareholders rejected his compensation package
- Shareholders voted against David Zaslav’s pay package, which was described as a potential golden parachute worth $500M–$800M.
- The vote is non-binding, so the board is not legally required to change anything.
Why the package drew so much backlash
- The package included a controversial tax gross-up clause, which would cover Zaslav’s tax burden.
- Governance firms like ISS and Glass Lewis flagged it as highly problematic.
- The hosts call the structure unusually generous and out of step with modern corporate practice.
Likely outcome
- Hoffman expects the board to largely ignore the vote because the company is being sold and the current board won’t be around to face the consequences later.
- The broader point: these votes are mostly symbolic unless a company has to keep dealing with shareholders year after year.
How Zaslav Is Framing His Legacy
- Zaslav has recently been on a media tour arguing that he always intended to build the company, not sell it.
- Belloni is skeptical, arguing that the company was effectively structured to be sold from the start.
- The discussion frames Zaslav as a classic M&A operator:
- not a long-term studio builder,
- but someone focused on leverage, restructuring, and eventual monetization.
- The hosts suggest the Warner/Discovery combination created a lot of value destruction before it was finally sold.
Middle East Money and Control Questions
Who is funding the deal?
- The discussion turns to the participation of Saudi, Abu Dhabi, and Qatari money in the deal.
- Paramount says it is moving forward on syndicating the equity and bringing in additional investors.
Why the source of capital may matter less now
- Hoffman argues that concerns about Gulf capital have become less politically explosive than they once were.
- She also says the idea of “control” in media and tech has become much fuzzier in the AI era.
- The hosts suggest these sovereign funds increasingly want:
- economic returns,
- domestic development,
- and strategic influence through entertainment and sports investments.
Michael: Premiere Buzz and the Backstory Behind the Film
The premiere reaction
- Belloni and Craig Horlbeck attended the Michael premiere and describe it as an old-school Hollywood event:
- huge crowd,
- loud fan reactions,
- packed theater,
- and a very enthusiastic audience.
- The film reportedly played very well with Michael Jackson fans in the room.
Cast and notable attendees
- Belloni highlights surprise celebrity appearances, including:
- Mike Myers,
- John Voight,
- Mookie Betts,
- and Magic Johnson.
The movie itself
- The hosts call it a crowd-pleasing, fan-service-driven biopic.
- It largely avoids engaging with the allegations surrounding Michael Jackson.
- Jafar Jackson is praised as strong casting in the lead role.
- Coleman Domingo also gets positive mention.
The more controversial original version
- Belloni says the original script went much further:
- it reportedly tried to actively discredit accusers,
- and was designed as more of an exoneration project than a neutral biopic.
- The version that reached theaters is softer, but the hosts note that the original intent was even more aggressive.
Box office outlook
- Tracking is around $70 million for opening weekend.
- The hosts expect it to outperform expectations, especially with:
- Jackson’s fan base,
- international appeal,
- and strong music/performance sequences.
- The real question is not opening weekend, but whether word of mouth holds after the first wave of fans.
Main Takeaways
- Warner Bros. Discovery’s sale is now much closer to reality, but still faces regulatory and political risk.
- Zaslav’s compensation remains a major reputational issue, even if it probably won’t change the deal mechanics.
- Netflix’s aggressive pursuit of the library may have created strategic headaches for itself, even as it helped push up the price.
- The financing side of the deal raises questions, but probably not enough to derail it in the current geopolitical climate.
- *Michael* looks positioned as a commercial crowd-pleaser, even if critics and some industry observers find its approach to Jackson’s legacy morally evasive.