Hollywood can be in crisis or booming depending on who you talk to.
Ask Paramount and it will tell you that giants in the tech and entertainment industry like Netflix, Amazon, and Google are so dominant that they have cornered their market that consolidation is the only viable way to compete. According to its reasoning, the marriage of the two major studios will not only be the best move but also the most beneficial for consumers and employees.
If you asked the 12 state coalition that filed a lawsuit to stop Paramount from acquiring Warner Bros. for $111 billion, they would say otherwise. Discovery’s lawsuit claims that business at theaters is “thriving”. Its lawsuit to block the deal is based on the notion that a merger would undermine the resurging theatrical scene.
This is just one example of the many differences between Paramount Studios and the state prosecutor in this case, which will continue to define Hollywood for decades. There will be a great deal of legal jockeying.
This maneuvering began with Monday’s filing. The court is now considering issuing a 14-day temporary injunction to stop Paramount’s closure and, later on, an interim injunction which would continue until the case has been decided.
To issue such an order, the court would have to determine that it is likely the state will win. According to the Supreme Court decision U.S. V. Philadelphia National Bank, the combined company’s alleged 30% market share for blockbuster movies barely qualifies as a violation under antitrust laws. According to the guidelines outlined in the case, Paramount would have the burden of proving that the merger won’t harm competition.
Makan Delrahim, a seasoned legal expert, and Jeffrey Kessler – a renowned antitrust specialist – are leading the studio’s team of lawyers who are ready to appeal any adverse ruling. Delrahim wrote on LinkedIn that he would “bet” “there are at least seven votes, perhaps 8 or 9 in the Supreme Court, who will overturn this today.” Paramount, to bolster its ranks, has hired former U.S. Paul Clement is the Solicitor-General of the United States, and he has appeared before more than 100 justices. This makes him the lawyer with the highest number of appearances in this country.
The states have decided to not include streaming in the market case. This is a clever move, considering that Nielsen’s estimates for last year show Paramount+ or HBO Max only have a maximum of 10 percent in VOD viewers. This also avoids the potential argument that a studio is competing with YouTube and TikTok. Netflix used this defense when they were preparing to buy Warners.
The states are in for a doomsday situation over the coming months. They will lose their attempt to get an injunction, and Paramount will close the deal. The courts have traditionally been more willing to block a merger outright than to dissolve one.
Studio has backed off the target date of July 22, but still plans to complete the deal by the end quarter. Paramount is preparing to close the deal in a hurry for several months. In December it filed paperwork to have the Justice Department approve the deal, even though Netflix seemed to be the winner of the bid war.
Delays in closing can have major financial consequences. Warners shares are due $650m per quarter, or $6.9m per day, if they don’t complete the merger by September 30.
Already, the ticking charge is a hotly contested issue. Paramount says the ticking fee is a good reason to not stop the merger, and that a delay would irreparably harm it. The bond is likely to be in the range of nine figures.
States have differing views. Paramount and Warners accepted that the merger could not be completed until 2027, if a legal dispute was still pending. This means that both companies were willing to pay the fees. In the past, courts were reluctant to issue large bonds for mergers. Judge Araceli Martinez-Olguin, who oversees the Nexstar/Tegna merger case, issued a bond for $10,000 when the TV giant requested $150 million. This will be the issue that U.S. district judge Araceli Martinez Olguin is going to deal with. She’s overseeing other lawsuits filed by Paramount+ and Writers Guild of America in an attempt to stop the merger. All the cases will proceed in different ways.
Paramount filed a motion to remove Pitts from the case due to “an appearance” of bias based on his previous work with the WGA. This decision may be influenced by the judge’s handling a case involving Hewlett Packard Enterprise and its bid to purchase information technology company Juniper Networks at a price of $14 billion.
Paramount is trying to make the merger a political issue. Bonta estimated the litigation costs, including expensive lawyers, specialized economists, and antitrust specialists, to be $20 million. State prosecutors have to pay this price when the Justice Department is not on their side.
On Sunday, the day before the suit was filed, an article surfaced about Paramount CEO David Ellison’s team pushing media executives to relocate the studio from California. According to the Semafor article, the executive’s confidantes had separately advised him to reallocate a large portion of the $30 billion in planned production expenditure outside California, where filming has dropped to historic lows.
The gambit has at least some truth. The Hollywood Reporter has learned that in a July 2 letter sent to Ellison, Tennessee’s Deputy Governor Stuart McWhorter asked the Paramount studio CEO to move the corporate headquarters of the company due to the California rift. The state is committed to “predictable government” and “steadfast belief in the role of government as a partner for private sector growth.”
According to THR, a long-time advisor of Ellison said that “everything’s on the table.”
Paramount appeared to have extended what they perceived as an olive branch prior to filing the lawsuit. The studio had offered to commit to producing 30 films annually with a theatrical window of 45 days, but this offer was rejected.
Paramount’s card is to renegotiate with Warners the terms of their merger agreement. Warners needs this deal just as badly as Ellison. In the event that the merger fails, the stock of Paramount would most likely fall back into the single digits or low teens, which is where its trading was for the majority of the last five years. A regulatory lawsuit would depress the value of any studio offer. It could be a good idea to delay the end date and increase the reverse breakup fees, as happened when the FTC filed a lawsuit to stop Microsoft from acquiring Activision Blizzard.
David Sands advised ICM in its CAA sale. He says, “It is hard to imagine them not cutting the deal to some extent to save it. It’s important to both parties.” We’ve seen the results when things go wrong. “You’ll see a significant loss in value.”
Warners’ stock rose by about three percent in the immediate wake of the announcement. This could be an indication that the situation wasn’t quite as bad for arbitrage traders. Others pointed out the lack of complaints over the CNN-CBS News partnership. Some pointed to the lack of claims regarding monopsony, which is a situation in which one buyer has a dominant position and can purchase labor below market value. In its lawsuit filed on Tuesday, the Writers Guild of America outlined this theory. SAG-AFTRA, IATSE and other unions could either join this case or bring their own.
Four lawsuits have been filed against the merger. A Paramount shareholder has filed the latest lawsuit, accusing Ellison and Oracle’s Larry Ellison of making an illegal agreement with Trump to get his approval for the merger. Different groups are attacking the deal from different angles, each with their own legal theories. A settlement of the lawsuit between the two states may not be enough.
Bonta has been pushing for tough terms, but a settlement would still be the best option, given the urgency of the case. Bonta told KQED that a possible deal must include the separation of a movie studio, cable channel suite, or news channel. He has so far refused to accept behavioral remedies, because they are “hard to enforce” or “easily reversed”.
Paramount is confident that it will come out on top. For them, it is only a matter of time.
Kessler stated on CNBC’s Tuesday appearance, “We will reach an agreement that is satisfactory to both parties.” “Either way.”

After negotiations broke down, the U.S. imposed 25% tariffs for most Brazilian imports, effective in one week. This concludes a year-long investigation of what Washington considers unfair trade practices. It also reignites tensions between Washington and Latin America.
This action was taken in accordance with Section 301 of 1974’s Trade Act. It targets Brazilian practices such as instructions to American technology companies — including X Meta and Google — to remove political content, suspend US resident accounts, or to offer preferential tariffs to Mexico and India.
This 25% tax, which is set to come into effect on the 22nd of July, will be applied to all imports coming from Brazil. Certain goods, such as orange juice, beef, aircraft parts and energy products, are exempt.
Brazilian Trade Ministry did not respond immediately to CNBC’s requests for comment.
These new tariffs follow the Supreme Court’s ruling in February that President Donald Trump had previously imposed a 50% tariff on Brazilian products, but only 10% globally. Trump is trying to regain his tariff authority by launching Section 301 investigations, which allow him to impose levies against countries that have been found guilty of unfair trade practices without further congressional approval.
In a recent statement, the U.S. Trade Representative’s office said that the extra tariffs were necessary in order to equalize the playing field between American companies and workers.
Marco Rubio, the Secretary of State for the United States of America (US), said in a blog post shortly after the announcement that Lula’s government “had not negotiated with good faith.” The tariffs are the result of Lula putting “his own ego before making a deal,” Rubio wrote.
This move comes after months of intense engagement between Brazilian officials, USTR representatives and other high-level Brazilian officials.
Lula said last month, in reference to Trump’s 25% tariff proposal at the time, that Brazil wouldn’t accept what his country received.
The decision is expected next week. A separate U.S. investigation into enforced forced labor could result in an additional 12,5% duty being added to the 25 percent on Brazilian products.

Skullcandy has a brand new wireless headphone, this time powered by Bose.
This $279.99 Crusher ANC headphones will feature several Bose technologies, the first time they have been marketed on headphones that do not belong to Bose. Bose QuietControl ANC is one of those innovations, allowing users to adjust the level ANC to better suit their surroundings. The feature is also adaptive and can adjust automatically based on your surroundings. It’s not a new feature, as many headphones have ANC controls. However, this one is more granular.
The Crusher 1080 ANC also features TrueSpatial Audio with Head Tracking, designed to give stereo music a more immersive feel by making it sound as if you were listening to speakers directly in front of your face. Bose’s AI-enhanced sound is decent, even though I am not a fan of spatial audio.
Bose’s WaveForm engine makes its first appearance outside of a Bose-branded product. Bose’s proprietary WaveForm audio engine is designed to keep music and voices clear even when the volume or background noise are high.
The Crusher 1080 ANC, in addition to Bose’s SpeechClarity, will have Bose’s voice pick-up, designed to improve voice clarity during calls.
Skullcandy claims that it has improved headphones drivers over the years, even without Bose’s help. The company claims to have used a “stiffer” material that allows for more “pistonic” movement of the diaphragm, which equates into less harmonic breakdown. The ANC is also improved by an enclosed acoustic chamber that improves sound separation and detail. Skullcandy claims that the Crusher 1080 ANC has a battery life of up to 50 hours when ANC is turned on and 60 hours with ANC off.

Cinephiles from all over the globe will flock to local cinemas this weekend to watch Christopher Nolan’s adaptation of The Odyssey. The film is expected to gross between $80 and $100 million within a matter of days. The public is clearly interested in how Nolan will use cutting-edge technology to give the Homeric classic a new feel. Another director wants to use the hype around Nolan’s film to promote his Odysseus movie.
The film studio Fountain 0 revealed on Tuesday that they are working on a reimagining The Odyssey based upon AI. The movie, titled Odysseus: The Fall will be made available for digital purchase or rental by the company later in this summer. Director Ash Koosha is behind the film. He previously worked with Fountain 0 to create Dreams of Violets, an AI-generated documentary about civil unrest in Iran that occurred between 2025-2026. Odysseus The Fall is also said to have a production budget that’s a fraction of what a traditional movie costs. Koosha wrote, directed and edited the film with a “mid-five figure” budget. This is nothing in comparison to Nolan’s $250 million for The Odyssey.
Odysseus The Fall trailer reveals what “film” Koosha created using Kling AI Video Generator and Google Nano Banana. Each shot is short and has that glossy, over-saturated aesthetic associated with artificial intelligence slop. Although the characters were modeled on real people — Koosha voiced the whole cast, this Odysseus is modeled off of her own image — there was still a stiffness in the way that they moved and spoke.
Fountain 0’s executive chairman, Tom Rogers, told Variety that their project is aimed at people who might not “like going to the movie theaters but have a real interest in AI and what’s happening.” This makes Odysseus: The Fall sound less like a filmmaker’s earnest interpretation of The Odyssey and more like an elaborate advertisement for Fountain 0’s AI-forward production workflow. Tom Rogers said in an interview with Variety that the project was aimed at those who don’t “like to go to movie theaters but are interested in AI.” It’s clear from this statement that Fountain 0 is trying to ride Nolan’s coattails to market its AI services while selling what’s essentially a direct-to-video knockoff of a film people actually want to see.
Rogers stated that “[W]e think our film will act as a catalyst to encourage people to go and see the Odyssey, who may not have otherwise seen it. They can then compare it to the current state of AI filmmaking, which is what I expect reviews to show Nolan’s movie to be.”
Rogers didn’t say that Odysseus The Fall would be able hold a candle for The Odyssey. He said that Fountain 0 projects are the best “films”, that AI companies can make. Rogers may genuinely think that the films produced by his company are excellent, but it is hard to believe theatergoers will agree. Dreams of Violets looks like an assortment of clips.
The visual splendor and artistry in Nolan’s The Odyssey make you realize that hundreds of people worked together tirelessly to create a truly epic work of art. Fountain 0 made a lot of noise about the fact that Koosha, his brother Pooya and their team did the majority of work for Odysseus : The Fall. But that’s not the kind of thing to convince people to purchase movie tickets.
Odysseus The Fall is another AI hype stunt with little connection to art. ElevenLabs recently released The Odyssey, narrated in part by an AI facsimile Michael Caine. This is also what studio/startup Particle6 has been trying to do for years, convincing everyone that Tilly Norwood’s “AI actresses” are something we all should be thinking about.
Particle6 announced recently that it too plans to release a full-length film starring an avatar. These two companies appear to believe that they can use trolls to gain popularity before being accepted into the entertainment industry. What they fail to understand is that people are drawn to films like Nolan’s The Odyssey because it is a celebration of the human element that is so important in traditional filmmaking.
The Odyssey’s effusive praise as well as the hateful reaction it has received both point to Nolan’s skill in creating works of art which evoke genuine emotions from viewers. These powerful emotions are what drives film discussion and gets people to buy movie tickets. This keeps major studios such as Universal in business. The technology’s supporters have not yet released a movie or series to match the level of excitement Nolan fans feel for The Odyssey, despite all their promises. They will never be able to if they only have stunts such as the ones Fountain 0 is planning to do.

Some lawmakers and officials in energy are criticizing New York for its decision to stop the construction of artificial intelligence data centres. They argue that the move will weaken America’s ability to compete globally, while also encouraging investors to go elsewhere.
Madison Alworth, FOX Business host of “Varney & Co.” and Stuart Varney discussed New York City’s first-ever pause in the nation on the construction of large AI data centers. They also talked about the energy debate within the state as well as the broader concern over U.S. competition with China.
The critics argue that limiting new artificial intelligence infrastructure may have implications beyond New York, because the demand for computing power is continuing to increase. John Fetterman (D-Pa.), Sen. John Fetterman’s reaction to the decision of New York State was a warning on X: “China will win.”
Gov. Kathy Hochul defended this policy by arguing that the electric grid of the state cannot support any additional large-scale installations.
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Hochul stated that “a giant data centre, this one 50 megawatt center… uses as much energy as 50,000 households… My grid is already overloaded.”
Chris Wright, the Energy Secretary of Canada, rebutted this argument by stating that large-scale technology projects could help to strengthen rather than constrain energy investments.
“Gov. Hochul is completely wrong. Wright stated that data centers were the best tool to use to slow down the increase in electricity costs and eventually bring them down. “Democratic green energy policies are what have driven up energy prices in New York State.”
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