Core Insights - Starz reported total revenue of $319.7 million in Q2, slightly below Wall Street expectations due to declines in subscriber levels on linear TV and streaming [1] - The company, which became independent from Lionsgate earlier this year, is projecting growth in both subscribers and revenue over the next two quarters [2] - Adjusted operating income before depreciation and amortization (OIBDA) reached $33.4 million, meeting Street forecasts [2] Subscriber Metrics - Starz has over two-thirds of its subscriber base in streaming, ending Q2 with 12.2 million streaming customers in the U.S., a decline of 120,000 from the prior quarter [3] - Total U.S. subscribers (linear and streaming combined) reached 17.6 million, down 410,000 [3] - North American subscriber count was 19.1 million, reflecting a quarter-to-quarter decline of 520,000 [3] Financial Performance - The company reported net losses of $42.5 million, equating to a loss of $2.54 per share [4] - Starz had total net debt of $573.5 million at the end of the quarter, with a leverage ratio of 3.2 times trailing 12-month adjusted OIBDA [6] Content and Future Outlook - The main new series released in Q2 was "Power Book III: Raising Kanaan," with the current quarter seeing strong performance from the "Outlander" spinoff "Blood of My Blood" [5] - Executives expect growth in both subscribers and revenue in Q3 and Q4, although no specific projections were provided [5] - CEO Jeffrey Hirsch highlighted significant progress towards financial and operational objectives since becoming a standalone public company [6] Stock Performance - Starz shares have nearly doubled since the company's May IPO, reaching a high of $21 before drifting down closer to $15 in recent trading sessions [7]

Watch on Deadline Mario Gabelli, the longtime fund manager who has made noise over the past two years about the terms of the Paramount-Skydance merger, has sued former Paramount controlling shareholder Shari Redstone. Gabelli, chairman of New York-based Gamco, filed suit against Redstone and National Amusements, the company that held the controlling stake in Paramount shares, in Delaware Chancery Court on Wednesday. He is seeking class-action status for the complaint. Along with other shareholders, Gabelli ...

Core Insights - Funko has appointed Josh Simon as the new CEO, who has a strong background in entertainment and consumer products, previously working at Netflix, Disney, and Nike [1][5] - Simon's experience includes overseeing global merchandise and live experiences at Netflix, where he managed products for major titles and launched the company's first e-commerce platform [2][4] - Funko aims to leverage Simon's expertise to maximize growth opportunities and expand its business in the pop culture sector [5] Company Overview - Funko is a company focused on fandom and pop culture, with a diverse portfolio that includes brands like Funko, Loungefly, and Mondo, covering vinyl figures, collectibles, fashion accessories, and more [1] - The company is looking to build on its existing fan base and enhance its connection with lifestyle brands [5] Leadership Transition - Josh Simon succeeds interim CEO Mike Lunsford and will also join the board of Funko [4] - Funko's chairman, Charles Denson, expressed confidence in Simon's leadership abilities and his potential to drive the company's growth [5]

Core Viewpoint - Tegna's shares increased nearly 30% following news of Nexstar's advanced talks to acquire the company, indicating strong market interest in the potential merger [1]. Company Summary - Nexstar is in advanced discussions to acquire Tegna, with the valuation expected to be well into the billions, following a previous $8.6 billion offer from Standard General that was blocked by the FCC [2]. - Tegna's CEO expressed optimism about deregulation, suggesting it would create significant opportunities for the company, and indicated a willingness to consider both buying and selling depending on market conditions [7]. - Tegna has received interest from other parties after the collapse of the Standard General deal, highlighting its attractiveness in the current market [7]. Industry Summary - The FCC is currently reviewing the ownership cap that restricts station owners from controlling more than 39% of U.S. stations, with indications that this cap may be lifted or eliminated under the current administration [3][5]. - The potential Nexstar-Tegna merger could lead to further consolidation in the local TV sector, contrasting with the more cautious approach seen in the broader media and tech sectors due to recent regulatory challenges [4]. - Smaller station groups and public interest advocates have raised concerns about the potential for monopolistic behavior if regulations are loosened, emphasizing the ongoing debate around media ownership and competition [5][6].

Core Insights - AMC Entertainment, the largest theater chain in the U.S. and globally, reported improved financials in the June quarter, driven by a recovering box office and strong performance in both AMC and Odeon in Europe [1][4] Financial Performance - Revenues increased by 35% to $1.4 billion, while net loss narrowed to $4.7 million from $32.8 million [2] - Adjusted EBITDA rose to $189 million compared to $38 million [2] - Net cash from operating activities turned positive at $138.4 million from a negative $34.6 million, and free cash flow reached $89 million compared to negative $79 million the previous year [3] Stock Performance - Shares increased by 6% following the financial results, with a premarket rise of up to 12% [3] Operational Metrics - Admissions revenue per patron exceeded $12 for the first time, reaching $12.14, while consolidated food and beverage revenue per guest rose to $7.95 [5] - Consolidated revenue per patron hit $22.26, indicating strong consumer interest in AMC and Odeon as attractive entertainment options [5] Strategic Initiatives - The company has taken steps to strengthen its balance sheet, addressing 2026 debt maturities by extending them to 2029 [5] - CEO Adam Aron emphasized the importance of these initiatives in positioning the company for continued growth, particularly anticipated in late 2025 and into 2026 [5] Enhancements and Innovations - AMC is focusing on advanced technologies such as state-of-the-art laser projection, improved seating, and expanded food and beverage options [6] - The chain is increasing the rollout of premium formats like Imax, Dolby Cinema, and Laser-equipped screens, with auditoriums operating at nearly three times the occupancy of regular ones [6]

Core Viewpoint - AMC Networks is facing ongoing challenges in the cable network industry but does not plan to sell or spin off its assets like some competitors [1][2]. Company Performance - AMC Networks reported a revenue decline to $600 million from $625.9 million year-over-year, despite exceeding analysts' forecasts [5]. - The company experienced an 18% year-over-year decline in advertising revenue, totaling $123 million, attributed to linear ratings declines and lower marketplace pricing [10]. - Affiliate revenue decreased by 12% to $151 million, due to basic subscriber declines and contractual rate decreases [9]. - Streaming revenue increased by 12% year-over-year to $169 million, with a slight increase in subscribers to 10.4 million [9]. Financial Outlook - The company anticipates strong cash flow, projecting it to reach $250 million this year [4]. - Despite a 6% drop in shares initially, the stock later rose by 21% on above-average trading volume, although it has fallen more than 25% year-to-date [4]. Strategic Positioning - AMC Networks differentiates itself from competitors like Versant and Warner Bros. Discovery by emphasizing its streaming business, which is expected to comprise the majority of revenue by 2025 [2]. - The CFO highlighted the company's diverse assets, including a studio and a robust streaming portfolio, which work synergistically [6]. - The Dolan family's control over AMC Networks suggests motivations beyond purely financial considerations, as the company is a smaller part of a larger empire that includes valuable assets like Madison Square Garden [7].

Core Insights - AMC Networks is actively pursuing AI integration through a partnership with Runway, emphasizing that this initiative is a technology play rather than a threat to intellectual property or creative partnerships [1][3] - The entertainment industry is navigating the complexities of AI adoption amid union sensitivities, with AMC Networks being more open about its AI strategies compared to other media companies [2] Group 1: AI Integration and Strategy - The partnership with Runway aims to enhance creative processes, allowing teams to visualize ideas and reduce costs in production, particularly in post-production for the 30 to 50 episodes produced annually [3][4] - AMC Networks positions itself as an early adopter of AI technologies, leveraging them to support showrunners and improve the ideation process [3][4] Group 2: Industry Context and Reactions - The use of AI in Hollywood has been contentious, especially following the 2023 strikes, with companies like Disney and NBCUniversal taking legal action against AI firms for alleged misuse of proprietary content [2] - Proponents of AI argue that it can enhance the quality of films and series while also creating new job opportunities, despite concerns about job displacement [1][2]

Core Viewpoint - The CEO of Lionsgate, Jon Feltheimer, indicated a potential for strategic transactions following the split from Starz, highlighting the company's understanding of its earnings power and the need for scale in the industry [1][2]. Group 1: Strategic Transactions and M&A Opportunities - Feltheimer acknowledged the possibility of a strategic transaction in the future, emphasizing that the separation from Starz was intended to create optionality for both entities [2]. - There has been speculation regarding interest from Legendary and other companies in Lionsgate, although recent news suggests that any potential deal may be more focused on co-production rather than a full merger [3]. Group 2: Library Ownership and Revenue Generation - Lionsgate reported that its library generated nearly $1 billion in revenue over the past 12 months, largely due to the success of the John Wick franchise [3]. - Feltheimer clarified that the company owns most of its library, having invested $20 billion in production over 25 years, with 29 out of the top 30 titles being owned by Lionsgate [3][4]. - The company controls and distributes 20,000 episodes of television globally and manages significant portions of its film revenue through self-distribution and licensing [3][4]. Group 3: Licensing and Risk Mitigation - Lionsgate employs a risk mitigation model for international rights, opting to license rather than sell, which allows for revenue overages from third-party partners [3]. - The company maintains control over 75% of the top 20 franchises in its licensing agreements, ensuring strong future revenue streams from its library [4].

Core Insights - The release of the John Wick spinoff Ballerina, despite being a box office misfire, generated significant interest in the franchise, contributing to Lionsgate's library revenue nearing $1 billion over the past 12 months [1] Financial Performance - Library revenue increased by 12% to $989 million over the trailing 12 months, marking the third consecutive quarterly record for this metric [2] - Total revenue for the company was $555.9 million, slightly above Wall Street analysts' consensus forecast, but the loss per share of 32 cents was wider than expected [2] Division Performance - The motion picture division generated $267.3 million in revenue, a decline from $349.6 million in the same period last year [3] - The television unit performed better, with revenue rising to $288.5 million from $241.1 million [3] Profitability - Profit from the television segment more than doubled from $10.7 million in the previous year to $26 million this year, while movie profits significantly decreased to $2.4 million from $85.2 million [4] Strategic Outlook - The CEO indicated that the company is in a transitional year post-separation from Starz and is taking steps to return to solid growth by fiscal 2027, with plans for three major film releases and a doubling of scripted television series deliveries next year [5]

Executive Compensation - The new Paramount has established employment contracts for its executive team, including chairman-CEO David Ellison and President Jeff Shell, with five-year contracts featuring an annual base salary of $3.5 million, a target bonus of $1.5 million, and a one-time restricted stock grant valued at $75 million each [1] - Andrew Brandon-Gordon, EVP, Chief Strategy Officer and Chief Operating Officer, will receive a base salary of $2.8 million, a target bonus of $1.2 million, and a one-time restricted stock award valued at $60 million [2] Severance Payments - Outgoing Paramount Global executives Brian Robbins and Chris McCarthy will receive severance payouts, with previous SEC filings indicating payments totaling $18.3 million for McCarthy and $18.6 million for Robbins upon termination and other events [2] - The trio of George Cheeks, McCarthy, and Robbins collectively earned $22.2 million, $19.5 million, and $19.6 million, respectively, for the previous year [3] Merger Completion - The merger between Paramount and Skydance has officially closed, marking a significant transition for the company [3]