English Entertainment
MPAA, RIAA join consortium to study digital technologies
MUMBAI: Internet2, an advanced networking consortium in the US which is led by the research and higher education community has announced that the Motion Picture Association of America (MPAA) and the Recording Industry Association of America (RIAA) have joined it as corporate members.
The two industry associations plan to
collaborate with the Internet2 community to consider innovative content distribution and digital rights management technologies, and to study emerging trends on high-performance networks to enable future business models.
RIAA president Cary Sherman said, “Internet2 networking is an incredibly exciting tool for researchers, technologists and many others interested in developing new technologies, policies and business models for the next generation. Its value now and potential in the future are extraordinary, and we are very pleased to join this diverse community.
“We look forward to collaborative work with a broad spectrum of Internet2’s members to
develop new technologies that will enable us to produce and distribute digital content over next generation networks in ways that protect and enhance the value of creative works.”
One of the prime values of the advanced network infrastructure the Internet2 community has deployed is that it represents the leading-edge of Internet technology and therefore provides a window into the potential of the future of the Internet. Internet2 provides MPAA and RIAA with a testbed for examining future networking and secure distribution capabilities not possible on today’s commercial Internet.
The associations are reviewing the working groups and special interest groups within the Internet2 framework to determine the best opportunities for collaboration.
MPAA president Daniel Glickman said, “The movie industry is committed to working with the technology sector to find innovative new ways to deliver entertainment to consumers. The MPAA views this partnership with Internet2 as an important opportunity for collaboration as we seek to link new delivery models with content protection. The MPAA and its member companies have a wide-range of expertise in both areas, and I believe we can add a positive, constructive perspective to the excellent work of Internet2.”
Internet2 president and CEO Douglas Van Houweling said, “Internet2 provides the MPAA and the RIAA with unique access to the research and education community, which shares their interest in developing secure leading-
edge content distribution technologies. Together with the RIAA and MPAA, the Internet2 community is leading the way in helping to shape new business models for the future of the music and movie industries as consumers and businesses alike continue to rapidly adopt Internet technologies to receive these
products and services.”
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.
