English Entertainment
Discovery Communications inks long-term distribution deal with Lionsgate
MUMBAI: Discovery Communications and Lionsgate have entered an exclusive long-term agreement wherein the latter will distribute programming from Discovery’s network portfolio across packaged media platforms in the United States.
The agreement encompasses DVD and Blu-ray distribution of Discovery’s portfolio of series and specials spanning its network brands, including Discovery Channel, TLC, Animal Planet and Investigation Discovery.
The first release under the agreement will be the 23 February, 2016 Blu-ray and DVD release of Racing Extinction, the landmark documentary, which had its worldwide premiere yesterday on Discovery Channel in more than 220 markets. The film, directed by Academy Award-winning filmmaker Louie Psihoyos, tells the story of a team of artists and activists on an undercover operation to expose the hidden world of endangered species and the race to protect them against mass extinction. Spanning the globe to infiltrate the world’s most dangerous black markets and using high tech tactics to document the link between carbon emissions and species extinction, Racing Extinction reveals stunning, never-before seen images that truly change the way we see the world.
“We’re thrilled to expand our relationship with Discovery, home of some of the most exciting brands on television, and delighted to bring their diverse and growing portfolio of programming to our home entertainment consumers. Racing Extinction is a powerful and topical documentary by an acclaimed filmmaker that has taken television audiences by storm, and it reflects the world-class quality of Discovery’s great pipeline of content,” said Lionsgate home entertainment president Ron Schwartz.
“We’re delighted to partner with Lionsgate, which operates one of the industry’s leading home entertainment businesses, and eager to leverage their marketing prowess and distribution expertise for titles across our portfolio. Lionsgate is a strong partner and Racing Extinction is an ideal title to launch our partnership and create new opportunities for both our companies,” added Discovery Communications SVP digital distribution and partnerships Rebecca Glashow.
In addition to Lionsgate’s own film and television pipelines and the Discovery Communications content announced today, the company’s home entertainment business distributes content from other leading third-party suppliers including STUDIOCANAL, Miramax, A24 and Roadside Attractions.
The agreement extends the strategic relationship between the two companies announced last month, under which Discovery Communications agreed to purchase five million common shares of Lionsgate. Liberty Global also purchased five million common shares, resulting in each company having an approximately 3.4 per cent shareholding of Lionsgate’s current outstanding shares. Discovery Communications president and CEO David Zaslav and Liberty Global president and CEO Mike Fries also were named to the Lionsgate board of directors.
English Entertainment
Warner Bros. Discovery shareholders approve Paramount deal
Investors wave through a $111 billion megamerger but deliver a stinging, if toothless, rebuke over half-a-billion-dollar goodbye packages
NEW YORK: The shareholders said yes to the deal. They said no to the cheque. At a virtual special meeting on Thursday that lasted barely ten minutes, Warner Bros. Discovery investors voted overwhelmingly to approve Paramount Skydance’s $111 billion acquisition of the company — and then turned around and voted against the lavish exit pay packages lined up for chief executive David Zaslav and his fellow outgoing executives.
Not that it will make much difference. The compensation vote is purely advisory and non-binding. The Warner Bros. Discovery board can, and almost certainly will, pay out as planned.
But the symbolism stings. It is the second consecutive year that WBD shareholders have voted against the executive compensation packages, and this time they had good reason. Zaslav’s exit deal is, by any measure, extraordinary. Under the terms filed with the Securities and Exchange Commission, he is set to receive $34.2 million in cash severance, $517.2 million in equity in the combined company, and $44,195 in continued health coverage — a total of at least $550 million. On top of that, Warner Bros. Discovery has agreed to reimburse Zaslav up to $335 million for taxes assessed by the Internal Revenue Service on his accelerated stock vesting, though the company says that figure will decline depending on when the deal closes. As of March 11, Zaslav also held $115.85 million in vested WBD stock awards — and last month sold a further $114 million worth of WBD shares.
Shareholder advisory firm ISS recommended voting against the compensation measure, citing “problematic” tax reimbursements to Zaslav and the full vesting of his stock awards.
Zaslav will be bound by a two-year non-competition covenant and a two-year non-solicitation of customers and employees after the deal closes.
His lieutenants are not walking away empty-handed either. J.B. Perrette, chief executive and president of global streaming and games, is in line for $142 million, comprising $18.2 million in cash severance and $123.9 million in equity. Bruce Campbell, chief revenue and strategy officer, will receive an estimated $121.5 million, including $18.8 million in severance and $102.7 million in equity. Chief financial officer Gunnar Wiedenfels is set for $120 million, made up of $6.6 million in cash severance and $113.1 million in equity. Gerhard Zeiler, president of international, will get $82.6 million, including $11.9 million in severance and $70.7 million in equity.
The deal itself, clinched in February after Netflix declined to raise its bid for Warner Bros., still needs regulatory clearance from the Justice Department and European authorities. Several state attorneys general are also weighing legal action to block it.
Senator Elizabeth Warren, Democrat of Massachusetts, was unsparing. “The Paramount-Warner Bros. merger isn’t a done deal,” she said after the shareholder vote. “State attorneys general across the country are stepping up to stop this antitrust disaster. We need to keep up this fight.”
If it does go through, the combined entity would be a formidable beast, bringing together Paramount Skydance’s stable — CBS, CBS News, Paramount Pictures, Paramount+, BET, MTV and Nickelodeon — with WBD’s portfolio of HBO, Max, Warner Bros. film and TV studios, DC, CNN, TBS, TNT, HGTV and Discovery+. Paramount has said it expects $6 billion in cost savings from the merger, which is Wall Street shorthand for mass layoffs on a significant scale.
The ten-minute meeting was presided over by chairman Samuel Di Piazza Jr., with Zaslav, Campbell, Wiedenfels and chief communications officer Robert Gibbs in virtual attendance. Di Piazza was bullish. “We appreciate the support and confidence our stockholders have placed in us to unlock the full value of our world-class entertainment portfolio,” he said. “With Paramount, we look forward to creating an exceptional combined company that will expand consumer choice and benefit the global creative talent community.”
Zaslav echoed the sentiment. “Over the past four years, our teams have transformed Warner Bros. Discovery and returned the company to industry leadership,” he said. “Today’s stockholder approval is another key milestone toward completing this historic transaction that will deliver exceptional value to our stockholders.”
Paramount Skydance struck a similar note. “Shareholder approval marks another important milestone towards completing our acquisition of Warner Bros. Discovery,” it said in a statement, adding that it looked forward to “closing the transaction in the coming months.”
The shareholders have spoken on the merger. On the pay, they were ignored before the vote was even counted.
