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    Hipgnosis Made Mega Deals for Song Catalogs. Its Future Is Unclear.

    The company’s shareholders on Thursday rejected a $440 million divestment plan and voted against maintaining its current structure.The future of Hipgnosis Songs Fund, the British company that helped kick off the music industry’s trend of top-dollar deals for artists’ song catalogs, is in question after its shareholders on Thursday rejected a $440 million divestment plan and voted against maintaining the company’s current structure.Hipgnosis, founded by Merck Mercuriadis, a former manager of stars like Beyoncé and Elton John, was listed on the London Stock Exchange in 2018 and pitched investors on music rights as a special kind of financial asset that is “more valuable than gold or oil.” Since then Hipgnosis, along with a sister fund backed by the private equity giant Blackstone, have spent more than $2 billion to acquire music catalogs from Neil Young, Shakira, Justin Bieber, the Red Hot Chili Peppers, Blondie and other artists and songwriters.But in recent months Hipgnosis has come under increasing pressure from dissatisfied investors who have seen the company’s share price drop in comparison to its so-called net asset value, an estimate of its catalogs’ worth prepared by an independent firm. Its share price closed at 74.20 pounds on Thursday, down about 43 percent from a high of 129.20 in November 2021. Its market capitalization is about $1.2 billion.The company also shocked investors last week by suspending its quarterly dividend, after saying that Citrin Cooperman, the independent firm that values its assets, had reduced the amount the company was expected to receive as a result of an industrywide royalty rate adjustment in the United States. Citrin Cooperman, the company said, had calculated that Hipgnosis would receive $21.7 million in retroactive payments, but recently reduced that to $9.9 million, and Hipgnosis said it had suspended the dividend payment — which had been announced at 1.3125 pence, or about 1.6 cents, per ordinary share — to remain compliant with its debt covenants.The global rise in interest rates has altered the calculus of many top-dollar catalog deals, but the investors in Hipgnosis have also grown concerned about the company’s management.“No investor ever knew that the fund was being managed so close to the edge that they were very close to tripping the debt covenant,” Sachin Saggar, a research analyst at Stifel, said in an interview.Hipgnosis recently proposed selling 29 catalogs for $440 million to the Blackstone-backed fund, which is managed by a company led by Mercuriadis. The proceeds were to help pay off Hipgnosis’ debt and buy back shares. But many investors balked, calling the price too low.At the company’s general meeting on Thursday, shareholders rejected the catalog sale and voted against maintaining the company’s structure as an investment trust, a decision that must be renewed every five years. According to an announcement by Hipgnosis, the company’s board now has six months to introduce proposals for future plans, which “may or may not involve winding-up the company or liquidating all or part of the company’s existing portfolio of investments.”The chairman, Andrew Sutch, and two other directors will leave the board.One possibility is that the assets could be sold to Hipgnosis Song Management, the advisory firm led by Mercuriadis, who has that right through an agreement known as a call option.In a statement on Thursday, Mercuriadis said: “Our conversations with shareholders have revealed a consensus that they are enthusiastic about the quality of the company’s iconic portfolio of songs, however it is also clear that they are asking for change and we respect that feedback.” More

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    The Cure Says Ticketmaster Will Issue Refunds After Fee Complaints

    The band said it wanted to make its North American tour “affordable for all,” but after tickets went on sale this week, fans said that fees had ratcheted up the price.The Cure’s frontman, Robert Smith, said on Thursday that Ticketmaster will provide $5 and $10 refunds to fans who purchased tickets for the band’s North American tour after the band complained to the company about high fees.In recent months, Ticketmaster faced increased criticism from ticket buyers as well as from members of Congress who accused its owner, Live Nation Entertainment, of being a monopoly that hinders competition and harms fans.Mr. Smith said on Twitter that Ticketmaster would provide the refunds. “Ticketmaster have agreed with us that many of the fees being charged are unduly high,” he wrote.1 OF 2: AFTER FURTHER CONVERSATION, TICKETMASTER HAVE AGREED WITH US THAT MANY OF THE FEES BEING CHARGED ARE UNDULY HIGH, AND AS A GESTURE OF GOODWILL HAVE OFFERED A $10 PER TICKET REFUND TO ALL VERIFIED FAN ACCOUNTS FOR LOWEST TICKET PRICE (‘LTP’) TRANSACTIONS…— ROBERT SMITH (@RobertSmith) March 16, 2023
    Ticketmaster did not immediately respond to a request for comment.Mr. Smith said that people who had purchased the lowest-priced tickets would automatically receive a $10 refund per ticket and that all other ticket buyers would get a $5 refund. He said that these refunds applied to people who had purchased tickets as a “verified fan,” a Ticketmaster system that requires people to register to gain early access to ticket sales.Fans who buy tickets during the general sale on Friday will “incur lower fees,” he said.This week on Twitter, Mr. Smith addressed questions and concerns from fans about buying tickets for the 30-show tour, which runs from May to July and includes three performances at Madison Square Garden in New York in June.The Cure had said in an earlier statement that it wanted tickets “to be affordable for all fans.” As part of this effort, Mr. Smith said that the Cure had refused to participate in Ticketmaster’s dynamic pricing system, which adjusts ticket prices based on demand.The system was criticized last year after it drove up the cost for Bruce Springsteen tickets, some of which were selling for thousands of dollars.After tickets for the Cure’s tour went on sale on Wednesday, fans shared screenshots that showed tickets priced at $20 with added fees close to or above the $20 base price.Mr. Smith said on Twitter later that day that he was “sickened” by Ticketmaster’s fees.“I have been asking how they are justified,” he wrote in all capital letters, his usual Twitter writing style. “If I get anything coherent by way of an answer I will let you all know.”Ticketmaster and Live Nation Entertainment have been under increased scrutiny since November, when the company botched its planned public sale of tickets to Taylor Swift’s latest tour.In November, the Justice Department opened an antitrust investigation into Live Nation Entertainment focused on whether it had abused its power over the live music industry.In December, 26 of Ms. Swift’s fans filed a lawsuit accusing Live Nation Entertainment of anticompetitive conduct and fraud.In January, the company was the subject of a Senate Judiciary Committee hearing in which senators from both parties criticized the company’s handling of ticket sales for Ms. Swift’s tour as well as its wider business practices.Last month, on the same day Live Nation Entertainment announced it had made $651.3 million in ticket revenue in the fourth quarter of 2022, the company responded to politicians in a statement.The company, which sold more than 550 million tickets last year, said it had submitted more than 35 pages of information to policymakers to provide context on the “realities of the industry” that it has dominated since Ticketmaster and Live Nation, an events promoter and venue operator, merged in 2010.“These include the fact that this industry is more competitive than ever: Ticketmaster has actually lost market share since the 2010 merger, not gained it; that venues set and keep most of the fees associated with tickets and are increasingly taking an ever-larger share; and Ticketmaster has for years been advocating for a federal all-in pricing requirement,” the statement said.Ticketmaster and Live Nation Entertainment have for decades been criticized for their business practices. The Justice Department said in 2019 that Live Nation Entertainment had “repeatedly violated” the terms of the regulatory agreement that the government imposed as a condition of the merger.The Justice Department investigated complaints of anti-competitive practices by Ticketmaster in the 1990s, after a dispute with the Seattle grunge band Pearl Jam. More

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    Quality Control, Atlanta Rap Powerhouse, Sells to Scooter Braun’s Hybe

    The acquisition is the famed music manager’s first major move at Hybe America — a division of the South Korean firm — since he became its sole chief executive last month.Quality Control Music, the Atlanta rap label that is one of the hottest hit machines in contemporary music, has been acquired by Hybe America, a company led by the executive and talent manager Scooter Braun, in one of the most closely watched deals in the music business.The acquisition is the first major step taken by Braun — who manages pop stars like Justin Bieber, Ariana Grande and Demi Lovato — since he became the sole chief executive of Hybe America last month. The company is a division of the South Korean entertainment firm Hybe, which dominates the K-pop world through its management of the superstar group BTS.The transaction was announced late Wednesday by Hybe America and QC Media Holdings, the label’s parent entity. The purchase price was not disclosed, but is estimated at around $300 million.“QC is one of the most significant independent labels in the world,” Braun said in a statement to The New York Times. “They not only distribute music, but they also distribute culture. Their artists are the voices of their communities.”The deal takes off the table one of the most coveted independent labels in music and expands the global repertoire of Hybe, which has only recently begun to look beyond the boundaries of K-pop.Since its founding in 2013, by Pierre Thomas (known as P) and Kevin Lee (Coach K), Quality Control has been behind the rise of rap acts like Migos, Lil Baby and Lil Yachty. Early on, the label mastered the promotion of music through streaming, adapting the fire-hose-of-content strategy that had long flourished in the world of semiofficial mixtapes.By early 2017, the label had scored a global smash with “Bad and Boujee,” featuring the idiosyncratic, stuttering flow of the trio Migos, with a guest appearance by the rapper Lil Uzi Vert. The song spent three weeks at No. 1 on Billboard’s Hot 100 chart. Lil Baby alone has garnered 37 billion streams of his catalog, according to Quality Control.Thomas and Lee will remain at the helm of the label, under the direction of Braun, they said.Braun became a power player in artist management after discovering a young Bieber on YouTube. In 2019, he came under the cross hairs of Taylor Swift fans when his entertainment company, Ithaca Holdings, bought her former label, Big Machine — including the rights to her first six studio albums — for more than $300 million, without Swift’s participation. Ithaca later sold Swift’s albums to another investor.In 2021, Braun joined Hybe after that company purchased Ithaca — which included Braun’s management deals, music publishing assets and the remainder of Big Machine — for just over $1 billion.“We want to take our brand worldwide and need partners with mind-sets like ours — ground up, self-made and building companies from nothing,” Thomas, Quality Control’s chief executive, said in a statement. “All of Hybe’s leaders are entrepreneurs with track records for finding, growing and amplifying their talent globally.”One question hanging over the deal is the future value of Migos, one of Quality Control’s biggest acts. One member, Takeoff, was killed in a shooting in November. A second, Offset, is suing Quality Control over ownership of his solo recordings. The third, Quavo, is managed by SB Projects, Braun’s company, which is part of Hybe America.Hybe’s deal for Quality Control is the latest in a string of transactions in which big music companies have scooped up smaller labels known for their close relationships with artists.In 2021, Warner Music Group paid $400 million for 300 Entertainment, which has released music by Megan Thee Stallion and Young Thug. That year, Sony Music also purchased a controlling stake in Alamo Records, whose acts include Lil Durk and Rod Wave; the value of that transaction was not disclosed, but is estimated at close to $200 million. More

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    Ticketmaster Called a ‘Monopoly’ at Senate Hearing Over Taylor Swift Debacle

    The Judiciary Committee, responding to the bungled sale of Taylor Swift concert tickets, heard the company apologize and its critics trace the problem to the industry’s lack of competition.Live Nation Entertainment, the concert industry giant that owns Ticketmaster, came under withering attack during a Senate Judiciary hearing on Tuesday, with committee members from both parties criticizing it for the botched sale of tickets to Taylor Swift’s latest tour and calling the company a monopoly that hinders competition and harms consumers.Over nearly three hours, senators pilloried a top Live Nation executive, Joe Berchtold, over the handling of Ms. Swift’s tickets last November and over longstanding allegations that the company badgers its competitors to win new business. Such bullying would be a violation of a Justice Department agreement that set conditions on the merger of Live Nation and Ticketmaster in 2010.“This is all the definition of monopoly,” said Senator Amy Klobuchar, Democrat of Minnesota. “Live Nation is so powerful that it doesn’t even need to exert pressure. It doesn’t need to threaten. Because people just fall in line.”Some at the hearing went so far as to question whether the two companies, whose agreement with the Justice Department expires in 2025, should be broken up.Mr. Berchtold, Live Nation’s president and chief financial officer, acknowledged the problems with a presale for Ms. Swift’s tour, and apologized to the singer and her fans. When those tickets went on sale, millions of people were turned away. Technical problems also caused tickets to disappear from the online baskets of customers — whom Ticketmaster had approved through its Verified Fan system — as they were trying to buy them.At the hearing, both Republican and Democratic senators expressed concern about Live Nation’s dominance in the ticketing industry. Haiyun Jiang/The New York TimesMr. Berchtold largely attributed Ticketmaster’s failings to an assault from online bots: automated programs, run by scalpers, that seek to snatch up tickets before they ever make their way to consumers. That drew a largely skeptical response from the senators.“This is unbelievable,” Senator Marsha Blackburn, Republican of Tennessee, said, with more than a hint of anger in her voice. “Why is it,” she added, “that you have not developed an algorithm to sort out what is a bot and what is a consumer?”Senator John Kennedy, Republican of Louisiana, was even more blunt. “The way your company handled the ticket sales with Ms. Swift,” he said, “was a debacle.”The merger of Live Nation and Ticketmaster united the world’s most powerful concert promoter and the biggest ticketing platform, creating a colossus without equal in the multibillion-dollar live music business.In 2019, the last full year unaffected by the Covid-19 pandemic for which Live Nation has reported data, the company put on more than 40,000 events around the world and sold 485 million tickets. It owns or otherwise controls more than 300 venues around the world, far more than any other player in the business.In part because of its bulk and global reach, Live Nation has long been the target of complaints from competitors, who contend that the company’s size, and its control of Ticketmaster, give it an unfair advantage.Jerry Mickelson, a longtime independent concert promoter in Chicago, told the senators that a common frustration among the market’s smaller players is that Live Nation can profit from concerts put on by rival promoters because it still makes money through its control of Ticketmaster. “Pepsi doesn’t earn money from Coke,” he said. “But our competitor, Live Nation, makes money from selling tickets to our concerts.”Objections to Live Nation’s business have grown louder since 2019, when the Justice Department said that the company had “repeatedly violated” the terms of its regulatory agreement, called a consent decree.Justice Department investigators said that Live Nation had threatened venues that it would withhold tours under the company’s control if those venues did not sign deals with Ticketmaster, in violation of a key provision in the decree. Live Nation did not admit any wrongdoing, but in early 2020 the Justice Department extended the decree by five years.Senator Richard Blumenthal, Democrat of Connecticut, was among those at the hearing who raised the question of whether Live Nation’s merger with Ticketmaster should be undone.“If the Department of Justice establishes violations of the consent decree,” he said, “then unwinding the merger ought to be on the table.”Mr. Berchtold pushed back against many of the accusations, saying that Live Nation does not threaten venues; that those venues hold a great deal of leverage in negotiating ticketing contracts; and that new entrants like SeatGeek, a rival ticketing platform, have kept Ticketmaster on its toes. According to various estimates cited by the senators, Ticketmaster controls the ticketing at 70 to 80 percent of major concert venues in the United States. Mr. Berchtold said Live Nation’s estimate is 50 to 60 percent and he attributed its market share to the quality of its product.A small number of people demonstrated outside the Senate office building during the hearing, some holding signs referencing the Taylor Swift ticket debacle. Kenny Holston/The New York Times“We believe ticketing has never been more competitive,” he said.At the hearing, called “That’s the Ticket: Promoting Competition and Protecting Consumers in Live Entertainment,” witnesses included other players in the concert business who described great difficulties competing against Live Nation.Jack Groetzinger, the chief executive of SeatGeek, said that venues are afraid of losing Live Nation concert tours if they do not sign with Ticketmaster. He said that is an obstacle for smaller companies like his in winning new business — though SeatGeek has been one of the more successful upstarts in ticketing in recent years, signing major clients like the Dallas Cowboys and Jujamcyn Theaters, one of the major Broadway theater owners.The panel also included a musician, Clyde Lawrence, of a small New York band called Lawrence. Dressed in a black suit, and with a scruffy head of hair, he joked that he could only dream of the crushing ticket demand enjoyed by Ms. Swift. But he described frustrations in dealing with Live Nation, such as the backstage costs it charges musicians, and the opacity of ticket surcharges, for which his band gets nothing.He described a typical show, where the face value of the ticket was $30, plus $12 in fees. Yet out of that $42 paid by the consumer, $30 was eaten up by the venue, Live Nation and Ticketmaster, and another $6 went to the band’s touring expenses. “So that leaves us with $6 for an eight-piece band, pretax,” he said, “and we also have to pay our own health insurance.”In his questioning, Senator Josh Hawley, Republican of Missouri, honed in on a facet of Ticketmaster’s business, the resale marketplace that exists seamlessly within its online ticket sales platform, “where you’re forcing everyone in the resale market to come into your ecosystem.”“This is how monopolies work,” Mr. Hawley added. “You leverage market power in one market to get market power in another market — and it looks like you’re doing that in, frankly, multiple markets.”Ms. Klobuchar, who called the hearing, said in a summation that some of the problems in ticketing, such as fighting bot traffic, could be dealt with through legislation. But she said that the larger question, of whether to take action against Live Nation as a monopoly, was best handled by the Justice Department. The near-unanimous criticism from lawmakers on Tuesday may put pressure on the Justice Department to act.The most remarkable aspect of the hearing may have been the display of consensus by a panel often split along partisan lines. Mr. Blumenthal summed that up with a mocking salute to Mr. Berchtold.“I want to congratulate and thank you for an absolutely stunning achievement,” he said. “You have brought together Republicans and Democrats in an absolutely unified cause.” More

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    HBO Max Pulls Nearly 200 ‘Sesame Street’ Episodes

    HBO Max took down classic episodes of “Sesame Street” as it prepares to combine with Discovery+. The move came as a surprise to fans, who worried about what it signals.Nearly 200 episodes of “Sesame Street” have been pulled from HBO Max, the streaming platform that has been purging films and television shows in recent weeks as it prepares to combine with another streaming service, Discovery+.Fans of “Sesame Street” were surprised on Friday to see that hundreds of episodes, most from the first 40 years of the show, had been removed from HBO Max.It is the latest shift at HBO Max following the merger of its former parent company, WarnerMedia, with Discovery Inc. in April. Together, the companies formed Warner Bros. Discovery, which is aiming to find $3 billion in savings in an effort to reduce its $55 billion in debt.This week, about 70 HBO Max staff members were laid off as a part of the reorganization, and HBO Max announced that 36 titles were being pulled from the platform. The pulled programming included the animated series “Infinity Train” and “The Not-Too-Late Show With Elmo,” a “Sesame Street” spinoff.David Zaslav, the company’s chief executive, also told investors this month that the company plans to offer a single paid subscription streaming service, bringing together content from HBO Max and Discovery+.It was not clear what that means for the future of “Sesame Street” on HBO Max.As of Friday, HBO Max had cut the number of “Sesame Street” episodes it provides to 456 from 650, Variety reported. Some spinoff series survived the cull, including seven seasons of “My Sesame Street Friends,” and “The Magical Wand Chase” special, featuring Elmo and Abby Cadabby, a pink fairy-in-training who joined “Sesame Street” in 2006.Every episode of “Sesame Street” from Seasons 39, which aired in 2008, through 52, the latest season, is still available on HBO Max. The newest season, 53, will air on HBO Max in the fall.The only episodes available from before season 39 are from seasons one, five and seven, including a fan favorite in which all of the characters gather for a singalong in Bert and Ernie’s bathroom.Some of the most notable episodes HBO Max once streamed are no longer available, including an episode that aired in 1983 and featured Big Bird confronting death, following the death of the actor who played Mr. Hooper, Will Lee.HBO said in a statement that the streaming platform was “committed to continuing to bring ‘Sesame Street’ into families’ homes.”“‘Sesame Street’ is and has always been an important part of television culture and a crown jewel of our preschool offering,” the statement said.Sesame Workshop, the nonprofit group behind “Sesame Street,” struck a five-year deal with HBO in April 2015 to give the premium cable network the first run of new episodes. The episodes would then air free nine months later on PBS, where the show had aired for 45 years.In 2019, Sesame Workshop made a similar deal with HBO Max, which started in May 2020. Both deals also gave HBO Max access to the enormous back library of “Sesame Street,” though it has never made all of the episodes available at the same time.Some episodes of the show are available on PBS and the Sesame Street YouTube account.Sesame Workshop did not immediately respond to a request for comment on Saturday.Joe Hennes, editor in chief of ToughPigs, a website for fans of “Sesame Street,” the Muppets and other Jim Henson creations, said the “Sesame Street” episodes still available on HBO Max were a “random assortment.”“The culturally important episodes, or the episodes that maybe a more casual fan would say, ‘I’d like to see that again,’ that stuff is what’s missing,” Mr. Hennes said.Mr. Hennes, who worked in the creative department of Sesame Workshop from 2012 to 2021, said that he was concerned that the episode removal could signal a fading relationship between HBO Max and Sesame Workshop.Sesame Workshop expanded its offerings and increased its production values with the influx of funding from the premium cable network. If HBO Max reduced its financial support or ended the relationship, Mr. Hennes said it could limit the nonprofit’s production and outreach work.“In a perfect world, HBO Max would want to invest more in ‘Sesame Street’ and really make it the flagship that it could be for the streaming network,” Mr. Hennes said. “So it’s a little baffling that they would decide to go backward on that and say we’re going to do less of this and not really capitalize on their own investment in the franchise.”After HBO Max’s decision to remove episodes became public, the official Twitter account for “Sesame Street” seemed to address the change.“Your friends on Sesame Street will always be here when you need them,” it said. “Visit the neighborhood any day of the week with full episodes on our YouTube channel.” More

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    Reckoning With Memories of Budapest

    In early April, when my flight arrived at Ferenc Liszt International Airport, László Borsos was waiting for me at the arrivals gate. I hadn’t seen the man in 28 years. I scanned the crowd and found him standing there with a wild grin on his face, his glasses dangling elegantly over a white collared shirt.After a quick hug, and with a wave of his hand, he gestured for me to hurry along; he was parked just beyond the sliding glass doors. And so, feeling myself slip back into an old habit, I threw my duffel bag over my shoulder, shook my head in disbelief and did what for four years as a child had been part of my daily routine: I followed him outside for a ride through Budapest.Budapest’s Castle District, in the distance, framed through a stained-glass window in the Parliament building.A university student peruses the selection at a small bookshop near the Metropolitan Ervin Szabó Library.St. Stephen’s Basilica, named after the first King of Hungary.It would be nearly impossible to overstate how dramatically the course of my life changed when my family moved to Hungary in the early 1990s. Both of my parents grew up in Ohio — my mother in a poor corner of Youngstown, and my father in a middle-class neighborhood in the sleepy town of Dover. When I was born in 1985, the last of three children, we lived in a small split-level house in Austintown, a suburb of Youngstown. My dad, one of the few people in my extended family with a college degree, was 11 years into a promising but as-yet unexceptional career as a finance manager at General Electric. Neither of my parents had ventured far from their childhood circumstances.In 1989, though, as political reforms swept through Central and Eastern Europe, General Electric strode into Hungary and purchased a light-bulb manufacturer, Tungsram, then one of the country’s largest and most iconic brands. The acquisition, orchestrated by Jack Welch, made for front-page news — and my dad, riding the wave of a stunning historical moment, accepted an overseas assignment to help introduce capitalist practices to a business with a long-running communist past.My dad, Karl, on the right, with Ferenc Musits, the chief accountant at the Tungsram factory in the city of Nagykanizsa, in the early ’90s.Seated in between my elder siblings, Nicholas and Emelia, in 1994. My mom, Sophia, ever busy behind the scenes (and as a result rarely in front of the camera), took the photo.We arrived in Budapest in the summer of 1990 — with my grandmother improbably in tow — to find our reality entirely transformed. My brother, sister and I were enrolled in an international school, where, unlike in suburban Ohio, our classmates’ nationalities spanned the globe. My parents, who until then had barely left the United States, were soon shepherding us on trips to Krakow, Madrid, Rome. We bought a brand-new Volvo station wagon. And perhaps most lavish of all, which to my parents must have been a comically unfathomable luxury: General Electric hired us a driver — a man named László, who arrived each morning in his impeccably clean Opel Kadett to ferry my siblings and me across the city to our school.László Borsos in April. Hired by General Electric as our private driver in 1990, he now owns and operates his own taxi business. When he learned from my mom that I was traveling to Budapest, he insisted on picking me up at the airport.In the 32 years since then, Hungary has undergone its own dramatic transformation. Once considered the most entrepreneurial and Western-friendly of the former Eastern Bloc nations, it has, of late, become a poster child of nationalism, illiberalism and the erosion of democratic values, offering a political vision that has been emulated in Poland and admired by populist figures in France, Italy and the United States.Hungary’s prime minister, Viktor Orbán, now the longest serving elected leader in Europe, has steadily consolidated power by rewriting the Constitution, overhauling election laws to favor his Fidesz party, undermining the independence of the courts and bringing most of the country’s media under the control of his political allies. The influence of his autocratic tendencies has also seeped into the country’s civic and cultural life, leading to the expulsion of a liberal university and affecting the leadership and offerings at theaters and museums.I sensed some of the troubling undercurrents within minutes of my arrival, when László, on our drive from the airport, began echoing Kremlin-friendly conspiracies about the war in Ukraine, which have been widely disseminated via the state-owned media and pro-government news outlets.A pro-Ukraine rally, held in late April near the Parliament, drew many hundreds of supporters.A nearby pro-Russia rally, held the same day in Szabadság tér, or Liberty Square, a few hundred feet away, drew a much smaller and less lively crowd — and an unexpected array of flags.Supporters of Mi Hazánk Mozgalom, or Our Homeland Movement, a far-right political party that campaigns on conspiracy theories, homophobia and anti-Roma racism, gathered outside the Ukrainian Embassy in early June. Once a fringe group, the party won parliamentary representation in the national elections held in April.Despite its modest size and economic output (its population, under 10 million, is roughly that of Michigan, and its G.D.P. roughly that of Kansas), Hungary has garnered outsize media attention in recent years because of Mr. Orbán’s self-described illiberal agenda. A number of Western journalists have descended on its capital and returned either with ominous reports about the country’s lurch toward autocracy or with obsequious interviews extolling Mr. Orbán’s conservative values. Meanwhile, amid the steady stream of polarized dispatches, I felt as though my increasingly distant memories and personal impressions of the place were being supplanted by a series of politicized caricatures.And so, earlier this year, after spending much of the pandemic traveling around the United States, I opted to push the limits of remote work and settle for a while in the city where I formed my earliest lasting memories. My hope was that I could retrace certain elements of my childhood, dust off my long-dormant language skills, reconnect with old family friends, assess the city’s political reality and, perhaps most important, get to know the place — learn its rhythms, appreciate its culture, observe the life of everyday Hungarians — from the loftier perch of adulthood.Tram 49 passes in front of the Great Market Hall. Like many of Budapest’s well-known buildings, the hall was built around the time of the country’s millennial celebration in 1896.Inside, customers line up in front of a meat vendor.The market’s airy interior.If Hungary has become the European Union’s most defiant state, then Budapest has become Hungary’s most defiantly liberal enclave — to the extent that short-term visitors to the city might easily miss the signs of a tense political environment.The opposition parties are noisy. Protests are commonplace. In part as a response to the passage of recent anti-L.G.B.T.Q. legislation, the Budapest Pride march has drawn huge crowds in recent years, and L.G.B.T.Q.-friendly venues are on the rise. Even the existence of progressive community centers — like Auróra, a social hub that offers a bar and a concert venue and has rented office space to N.G.O.s that focus on marginalized groups — suggests a kind of political and intellectual tolerance.And yet behind many of the organizations that are out of step with the ruling party’s politics is a story of instability — regarding funding, legal protection, reputation. According to a 2022 report by the Artistic Freedom Initiative, Hungarian artists and institutions that oppose Fidesz “find it increasingly difficult — and some speculate even futile — to earn state support without yielding to governmental demands and thus compromising their artistic or personal integrity.”Mikszáth Kálmán Square, in District 8, is often crowded with university students in the afternoons and evenings.Kolibri Kávézó, a small artisanal cafe. Famous for its fin-de-siècle coffee houses, Budapest is now home to dozens of trendy third-wave shops.The underground concert venue at Auróra, a social hub that has rented office space to N.G.O.s that focus on marginalized groups.No contemporary portrait of Budapest could overlook its grandeur: its opulent architecture, its stirring public spaces, its many richly appointed interiors. The bathhouses — Gellért in particular, with its Art Nouveau ornamentation and stunningly beautiful tiles — are among the city’s most treasured attractions. (Hungary is rich with thermal water springs; there are 123 in Budapest alone.)Other highlights include the Hungarian State Opera House, which reopened this year after an extensive restoration, and the newly minted Museum of Ethnography, part of an ambitious development project — opposed by local politicians — to transform Budapest’s main park into a must-visit cultural hub for tourists and locals.Two of the thermal pools at Gellért. To the right, just through the archway, is a cold plunge pool and a steam room.The main hall of the opera house during a performance of “Mefistofele” in late April. The chandelier, which weighs more than three tons, illuminates a fresco by the German-Hungarian painter Károly Lotz.Concertgoers during an intermission.The swooping lines of the new Museum of Ethnography, which opened in May. (The museum was previously housed in a building opposite the Parliament.)Working New York hours in Central Europe meant that my days were largely free until 3 p.m. (after which I worked until around 11 p.m.), leaving me with an abundance of time in the mornings and early afternoons to explore the city.Some days I spent in single-minded pursuit of specific artists: the architectural splendors of Ödön Lechner, whose work has come to define the Hungarian Secession movement, a localized expression of Art Nouveau; or the mosaics and stained-glass art of Miksa Róth, whose legacy is scattered throughout the city.The Royal Postal Savings Bank, which opened in the early 1900s, is one of Ödön Lechner’s masterworks. Now home to the Hungarian State Treasury, the building showcases a range of Hungarian folk motifs — though the striking details on the roof are largely hidden from view at street level. (When a contemporary pointed this out, Lechner is rumored to have said, “The birds will see them.”)The Hungarian Institute of Geology, another of Lechner’s designs.Inside the Institute of Geology. The mosaics and fossil-like sculptural forms were designed to evoke the interior of a cave.Other days I spent roaming more freely, poking my head into the charming courtyards of unassuming residential buildings or visiting with former teachers and old family friends.Exploring America’s National ParksThe glories of the U.S. national park system draw hundreds of millions of visitors each year.Hidden Gems: These days, serenity in nature can be elusive. But even the most popular parks have overlooked treasures.The Less-Traveled Road: When it comes to America’s national parks, it’s not all about Yosemite and the Grand Canyon. Try these lesser-known options.Ready for an Adventure: Not sure what to bring with you on your trip to a national park? Here is a list of essential gear, and these are the best apps to download.National Park Booking App: Traveler and travel industry frustration is growing with Recreation.gov, the online portal to book federal land accommodations and access.On rambles through familiar places, I felt the nostalgic potency of long-ago memories bubbling up to the surface: Here was the apartment building where Balázs Szokolay, our beloved piano teacher, lived with his mother, a sculptor. Here was our school, where, during the Persian Gulf war, the Hungarian police stationed armed guards at the gate. Here was the park where, when curiosity got the best of him, my brother ignited his shoelace with a match.In the afternoons, my feet sore from walking, I often settled in to work at a cafe or at one of the city’s many publicly accessible (and unexpectedly resplendent) libraries.Two neighbors chat in the interior of a residential building in District 8.The interior courtyard of a residential building in District 5, near Szabadság tér, or Liberty Square.A study room inside the Metropolitan Ervin Szabó Library.The library inside the Hungarian Parliament building.My favorite pastime, though, was meandering through Budapest’s grand cemeteries: Kerepesi in District 8, Farkasréti in District 12, Kozma Street in District 10. All three lie outside the popular tourist zones, which meant that, coming and going, I came to appreciate a broader swath of the city.I found that the cemeteries, filled with gorgeous statues from a range of eras, some exhibiting elements of Socialist Realism and others classically suggestive of the life’s work of the people buried beneath them, were microcosms of Budapest itself: trimmed and stately in their well-trafficked stretches, and unkempt at their fringes.The grave of Lujza Blaha, a Hungarian actress known as “the nation’s nightingale,” at Kerepesi Cemetery, the burial grounds for some of Hungary’s most famous figures — from sculptors and scientists to poets and politicians.An ill-kept grave in the far reaches of Kerepesi. The cemetery is a microcosm of Budapest: trimmed and stately in its well-trafficked stretches, and unkempt at its fringes.The Schmidl Mausoleum, built in the early 1900s for Sándor and Róza Schmidl, is a magnificent example of Hungary’s Jewish funerary art.It was the small, quiet moments that I savored the most: at first strolling past, then waving at, then eventually stopping to meet Erika Bajkó, who ran a small dog-grooming business around the corner from my apartment near Rákóczi Square; glancing up at the domed ceiling inside the entranceway to Széchenyi Baths; making an emotionally charged pilgrimage to my old home in Törökvész, a neighborhood in the Buda hills; joining the evening crowds at the middle of the Szabadság híd, or Liberty Bridge, where the heavy winds over the Danube helped wash away the late-spring and early-summer heat; studying the poetry of Miklós Radnóti, a celebrated Hungarian writer who was murdered in the Holocaust, as I wandered through the neighborhood where he lived.A woman walks two dogs past a groomer, Dog Diva, near Rákóczi Square.The dome in the entrance hall at Széchenyi Baths.An evening crowd gathers at the middle of the Szabadság híd, or Liberty Bridge.“I cannot know what this landscape means to others,” begins what is perhaps Mr. Radnóti’s most famous poem, completed less than a year before his death in 1944. Touching on themes of patriotism, foreign perception and national identity, it offers an instructive comparison of the appreciations of the land by the native-born poet and a passing enemy airman:Through his binoculars he sees the factory and the fields,but I see the worker who trembles for his toil,the forest, the whistling orchard, the grapes and graves,among the graves a grandma, weeping softly,and what from above is a railway or factory to be destroyedis just a watchman’s house; the watchman stands outsideholding a red flag, surrounded by several children,and in the courtyard of the factories a sheepdog frolics;and there’s the park with footprints of past loves …If you want to truly know this place, he seems to be telling us, then be attuned to its details, its people, the joy and suffering hidden in its everyday moments.A statue of Miklós Radnóti in Újlipótváros, or New Leopold Town.The Memorial of the Hungarian Jewish Martyrs, in the courtyard behind the the Dohány Street Synagogue. By the end of the Holocaust, some 565,000 Hungarian Jews had been murdered.A small crowd of tourists watches the sun set over the Danube River from an overlook on Gellért Hill.At Öcsi Étkezde, a small restaurant recommended to me by Tas Tobias, whose website, Offbeat Budapest, highlights the city from a local’s perspective, I earned my first Magyar nickname: Pityu, a diminutive of István, the Hungarian form of Stephen.Charmed by my attempts to order from a menu that lacked any hint of English, Erzsébet Varga, the chef, balked at my choice of two dishes containing pickled vegetables — they wouldn’t sit well in my stomach, one of the regulars explained with a laugh — and instead delivered the most delicious bowl of goulash I’d find anywhere on my trip.A group of regulars gathers for lunch at Öcsi Étkezde, a small restaurant in the outer part of District 8.A bowl of goulash sits beside a basket of bread and a handwritten menu, which changes daily.Ferenc Oláh, who runs the restaurant with Erzsébet Varga, his wife, holds up a picture of him and his father, who was also a restaurateur.Ferenc and Erzsébet in the restaurant’s kitchen. As with traditional diners in America, Budapest’s authentic étkezdes, once ubiquitous, are slowly vanishing, giving way to trendier cafes that cater to younger crowds.And yet, as the weeks went by, I found it increasingly difficult to overlook Hungary’s political backdrop. Nearly all of the young people I met in Budapest expressed a nagging malaise about their country’s future. A few, of course, supported the ruling party, but most were vehemently opposed. Many had friends who, noting the political headwinds and a relative lack of economic opportunity, had departed for Paris, London, Vienna. Others were sticking it out, though the landslide victory by Fidesz in the elections in April — despite an unlikely coalition made up of wildly divergent opposition parties — left them with a gnawing sense of hopelessness.Heroes’ Square, which serves as a gateway to Városliget, or City Park, seen before, during and after sunset. (I learned to roller-blade here in the early ’90s.)In mid-May I met András Török, a Budapest-born writer and city historian, at a colorful cafe in Lipótváros, or Leopold Town, a historic neighborhood in the center of the city. His guidebook, “Budapest: A Critical Guide,” updated regularly since it was first published in 1989, is as playful as it is insightful and had helped me reacquaint myself with the city. (Another project he manages, Fortepan, which was founded by Miklós Tamási, offers a staggeringly rich collection of old Hungarian photographs.)We spoke briefly about the optimism many locals had experienced in the late ’80s and early ’90s — “Suddenly the color of ink I used in my fountain pen, which I ceremoniously bought in Vienna every year, was available in the corner shop,” he said wistfully — before turning to present-day concerns.“The victory by Fidesz was so devastating that it’s obvious people want this system,” he said. “It’s an epoch in Hungarian history now,” he added, referring to Mr. Orbán’s tenure.As a response, he said, many of those disheartened by the ruling party have taken an inward turn. “I cultivate my own garden; I write my books,” Mr. Török, who is 68, said. “I talk to my grandchildren and to my friends — and I try to enjoy my life.”“And,” he added, “I accept that I will never in my lifetime see the Hungary I’d like to see.”András Török near a park in Lipótváros, or Leopold Town. His guidebook, “Budapest: A Critical Guide,” is a playful and insightful introduction to the city.Of course, supporters of Mr. Orbán’s, a minority in Budapest but a majority in Hungary overall, don’t express the same pessimism. At the Ecseri Piac, a flea market in the city’s Kispest district — where, during my childhood, I marveled at the overwhelming assemblage of Soviet memorabilia — I met Erika Román, who was selling a range of textiles. Declaring her ardent support for Mr. Orbán, she explained that “Hungary is a little country,” and that “Hungary is for Hungarians.”Behind that sentiment, which is widely popular throughout the country, lies the belief that true Hungarian identity — threatened by globalist progressives and immigrants from the Middle East and Africa, whom Mr. Orbán considers to be existential threats to the European way of life — is inextricably bound with race and religion.“There are more people living in New York City than in the entire country of Hungary,” the conservative writer Rod Dreher points out in a recent article, “which is partly why the Hungarians are so anxious about being assimilated out of existence.”A row of shops at Ecseri Piac, a flea market in the city’s Kispest district.Erika Román, a vendor at the market. “Hungary is a little country,” she told me after expressing her support for Viktor Orbán. “And Hungary is for Hungarians.”The more I reflected on Hungary’s autocratic turn, the more I was haunted by something Mr. Török mentioned during our digressive conversation in May.To experience Hungary’s transformation from totalitarianism to free democracy in the late ’80s and early ’90s, he said, was a wonderful thing. “Earlier I’d thought that I had been born at the wrong time,” he said. “But then I realized: Oh! I was born at the right time after all!”A home video taken in 1992 shows the condition of Mátyás-templom, or Matthias Church, in the heart of the Castle District.And yet he had “a sort of secret fear in the back of my mind,” he said, that the transformation had happened entirely too quickly — so quickly, as others have argued, that Hungarians, having lived for 40 years behind the Iron Curtain, weren’t given enough time to appreciate or internalize their rights and responsibilities as citizens of a democracy.“We seemed to have been given a free lunch by Gorbachev and Reagan,” he said. “And I think we are learning now, somehow, that there is no such thing as a free lunch.”Matthias Church in early May. Over the course of its eclectic history, the building has seen the crowning of Hungarian kings and served for 150 years — during the Ottoman occupation — as a mosque.A building project in the Castle District. Efforts to restore and reconstruct certain historic buildings are aimed at drawing more tourists and creating an expression of Mr. Orbán’s brand of nationalism.The roof of Matthias Church. The tiles were made by Hungary’s celebrated Zsolnay porcelain factory, which also supplied tiles for the Parliament building, the Gellért baths and several buildings designed by the renowned Hungarian architect Ödön Lechner — including the two buildings, the Royal Postal Savings Bank and the Hungarian Institute of Geology, shown earlier in this essay.How much, I began to wonder, had General Electric’s quick entry into Eastern Bloc markets — which, despite high hopes, quickly led to labor tensions and slashed payrolls and ultimately proved to be more fraught than expected — helped hasten Hungary’s too-rapid transformation? How much had the frenzied reach of American capitalism helped set the stage for Mr. Orbán’s rise?How much, I wondered, had that earlier tide of history helped shape today’s?The crumbling entrance to a Tungsram site in Budapest, photographed in late May. Tungsram, which was finally sold by General Electric in 2018, filed for bankruptcy protection earlier this year.In late May, I caught wind — through 444.hu, a self-consciously edgy news site, and, alongside Telex and HVG, one of Hungary’s few remaining independent outlets — that a sprawling field of poppies had bloomed in District 15, near the edge of the city. I hopped on a bus for the 40-minute ride, gazing out the window as we wended our way through timeworn residential areas and past Soviet-era panel housing estates.Exiting the bus near a discount grocery store, I looked out across its parking lot and saw a vast sea of brilliant red petals that stretched for half a mile toward the M3 motorway.A field of poppies that bloomed on the outskirts of Budapest, at the edge of in District 15, in May.The immense field, within city limits, sat just beside a set of residential towers.A bee drifts toward a flower to collect pollen.The flowers, of course, weren’t long for this world — merely a momentary splash of vibrancy in Budapest’s weary periphery. Nor was the field itself destined to last: It would soon be paved to make room for a housing development.How fitting, I thought, since transience, in the end, was one of Hungary’s abiding lessons. After my family moved back to Ohio, where the homogeneous suburban scene accentuated the richness of the culture we’d left behind, I learned that the only constant I could rely on was the promise of constant change. So much simply faded away. My parents divorced. My international-school friends scattered like seeds. My grandmother was withered by cancer. In time, Tungsram would decay, as would General Electric, as would the influence of Western liberalism.But Budapest, in my memory, stands like a land before time. No doubt that’s why I feel such a connection to the place. No doubt that’s why it feels like home.With my grandmother, Natalie Faunda, on Margaret Island — which sits in the middle of the Danube River, between Buda and Pest — in 1990.My family at an overlook on Gellért Hill in ’92 or ’93.Standing on the outskirts of Budapest, watching the poppies dance in the wind and contemplating the ephemerality of this age-old city, I was reminded of a quote from Péter Molnár Gál, a Hungarian critic, that I’d read in Mr. Török’s guidebook.“In Budapest,” he writes, “you can’t dunk your bread in the same sauce twice. The city is going through a time of transition. As it has been doing for five hundred years.”By then, I think, wrestling with the past and the present, I’d begun to see the central question about Hungary’s future as one that posits pessimism and optimism as equally naïve: If the historical tides of the last 30 years are anything of a guide, then how could we ever hope to know what the next tide will bring?The Buda Castle after nightfall.Stephen Hiltner is an editor and photojournalist on The New York Times’s Travel desk, where he edits and contributes to the weekly World Through a Lens column. His last essay was about a kayaking trip through Florida’s Everglades. You can follow his work on Instagram and Twitter.Got a question, comment or tip? Send him an email or drop a note in the comments section.Follow New York Times Travel on Instagram, Twitter and Facebook. And sign up for our weekly Travel Dispatch newsletter to receive expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places list for 2022. More

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    New Era Begins at Warner Bros., Back Toward Its Entertainment Roots

    With a new owner, the 99-year-old movie studio appears headed back to its traditional sweet spot as an entertainment company. But the business of Hollywood is no longer the same.LOS ANGELES — By 2018, almost every golden-age Hollywood studio had been conquered by outside forces.Metro-Goldwyn-Mayer had been tossed between disruptive owners for decades, never to fully recover. Columbia Pictures was sold to Coca-Cola in 1982 and then offloaded to Sony in 1989. Universal had weathered five outside takeovers in the span of 21 years. Paramount Pictures had been strip mined for cash by an ailing Sumner Redstone.Warner Bros. alone stood as Hollywood’s citadel, a beige-walled protectorate of filmmakers run by executives with institutional Hollywood knowledge.Then AT&T drove into town.The Texas phone giant took over Warner Bros. in June 2018 as part of a bid to “bring a fresh approach to how the media and entertainment company works,” as Randall L. Stephenson, then AT&T’s chief executive, put it at the time. As it set about building a Netflix-style streaming service, AT&T slashed and burned through the Warner Bros. ranks and installed leaders with little Hollywood experience. They cut costs, surprised stars with abrupt distribution decisions and pushed Warner to start behaving as more of a technology company and less of an entertainment one: It’s the future!“The telephone people had no understanding of Hollywood — and no passion for movies,” Robert A. Daly, who ran Warner Bros. in the 1980s and ’90s, said on Friday. “It’s the same mistake outsiders always make. It’s show business, show business, show business. They always forget that.”On Friday, AT&T handed off Warner Bros. to Discovery Inc. as part of a $43 billion merger.The 99-year-old movie studio, home to Harry Potter, Batman and Bugs Bunny, will now head in a different direction — back toward its traditional sweet spot as an entertainment company, or at least Hollywood’s newest mogul has vowed. David Zaslav, Discovery’s chief executive, will run the new corporation, which is called, with no small amount of symbolism, Warner Bros. Discovery.Already, Mr. Zaslav has vanquished tech leaders brought in by AT&T, including Jason Kilar, who made his name at Hulu and Amazon, and Andy Forssell, who came up through Oracle and Hulu. Also departing is Ann Sarnoff, who AT&T hired to run Warner Bros. in 2019 despite limited Hollywood experience. During her tenure, Ms. Sarnoff reworked the Warner Bros. shield logo, dropping the gold trim in favor of AT&T blue. On Friday, Mr. Zaslav restored the gold.Some Hollywood players never changed their acid position on Ms. Sarnoff — she’s not one of us — with film folk sniping about her delay in relocating to Los Angeles from New York. (With the pandemic ebbing, she bought Matt Damon’s old house in November, spending roughly $18 million.)Ann Sarnoff was hired to run Warner Bros. in 2019 despite limited Hollywood experience. She is leaving the post.JC Olivera/Getty Images for National Hispanic Media CoalitionIn contrast, Mr. Zaslav is already deep into a lavish restoration of Woodland, an estate in Beverly Hills where Robert Evans, the show business legend, lived for decades. Mr. Evans was known for orchestrating a creative rebirth at Paramount in the 1960s and ’70s, delivering era-defining triumphs like “The Godfather” and “Chinatown.”“Success is about creative talent, in front of the screen, and behind the screen, and fighting and fighting to create a culture that supports that creative vision,” Mr. Zaslav said when announcing the takeover. For much of the past year, he has rhapsodized about the studio’s rich legacy, repeatedly paying tribute to Jack, Harry, Sam and Albert Warner, “the brothers who started it all.”On Friday, Mr. Zaslav talked about his aspirations to “dream big and dream bold” in an email sent to his new employees. “Hallelujah,” one Warner Bros. manager said in a text message afterward. Another executive at the studio, speaking by phone, said she was going on a “wild” shopping spree to celebrate, adding, “Hollywood is back, baby.”Others were not so sure. Mr. Zaslav qualifies as an entertainment insider, having run Discovery, a cable television behemoth, for 15 years and working at NBCUniversal before that. But he has little film experience. The merger also comes with breathtaking debt — some $55 billion — that will have to be paid down, even as content costs rise. Mr. Zaslav will need to make difficult decisions about how to allocate resources. How much money should be spent on movie production and marketing? To what degree should the studio make movies for exclusive release in theaters? Should the focus shift even further toward supplying films to HBO Max, the company’s streaming service?Under Ms. Sarnoff, Warner Bros. slashed its annual theatrical output by nearly half and built a direct-to-streaming assembly line. “The good old days are gone forever,” one Warner-affiliated film producer said on Friday.Hollywood as a whole finds itself in a similar state of mind: optimistic about the future of movies one minute, pessimistic the next. There is evidence that theaters are finally bouncing back from the pandemic. Over the weekend, the PG-rated “Sonic the Hedgehog 2” took in a huge $71 million in North America, the biggest opening total for a Paramount movie since 2014, while “The Batman” (Warner Bros.) added $6.5 million in ticket sales, for a blockbuster domestic total of $359 million since arriving on March 4.At the same time, one of Hollywood’s most bankable directors, Michael Bay, sputtered over the weekend. His crime thriller “Ambulance” (Universal) arrived to just $8.7 million in ticket sales. In another bummer, “Morbius” (Sony) collapsed in its second weekend, collecting $10.2 million in the United States and Canada, a 74 percent decline.Some analysts liken the future of big screens to Broadway — still alive, but relegated to a corner of the culture. “The pandemic caused a phase shift in movie consumption patterns with audiences having moved decisively to preferring streaming services over the theatrical experience for all but the biggest, loudest, PG-13est films,” Doug Creutz, a Cowen analyst, wrote in a March 25 report.The result is a disoriented movie business. Run toward streaming. No, wait — we’ve got to keep theaters alive. Run the other way.Now, run both ways at the same time.The discombobulation at Warner Bros. started in 2016. That is when AT&T announced that it was buying the studio’s parent company, Time Warner, for more than $85 billion. The deal sat in regulatory limbo for 20 excruciating months, limiting the ability of Warner executives to make bold strategic moves. Moreover, Netflix was spending billions during that period to become the preferred home for film directors and marquee television producers. Amazon Prime Video was also making inroads.Mr. Zaslav’s catch-up strategy will soon emerge. To formulate it, he has spent months reaching out to people like Mr. Daly; Sherry Lansing, the retired Paramount superpower; Robert A. Iger, who retired as Disney’s executive chairman in December; and Alan F. Horn, who ran the Warner Bros. Pictures Group from 1999 to 2011 and then led Walt Disney Studios for nearly a decade.Their brain power was undoubtedly invaluable. But meeting with them also sent a clear message to Hollywood: I respect your culture.“The telephone people had no understanding of Hollywood — and no passion for movies,” said Robert A. Daly, who ran Warner Bros. in the 1980s and ’90s.Valerie Macon/WireImage, via Getty Images“For an industry of its substantial size, Hollywood is surprising insular,” Mr. Horn said on Saturday. “The creative community, in particular, needs to feel your respect. Artists need to know that you understand them and will do your absolute best to protect them.”Mr. Horn continued: “David’s willingness to go around town and seek the advice of dozens of people has spoken volumes. It’s how you build trust.”Mr. Zaslav will “work with a passion to rebuild the studio’s relationship with the creative community,” Mr. Daly said. “You’ve got to support the talent,” he added. “It’s a bit like children: Don’t spoil them too much, but make them feel loved.”Mr. Daly then waxed nostalgic about talent relations at Warner Bros. in the past. The studio used to send turkeys to stars at Thanksgiving. “It cost nothing, and it meant the world to them,” he said. There was also the time, in 1992, when Mr. Daly gave free Land Rovers to seven members of the “Lethal Weapon 3” cast and crew. “It cost us $320,000 to buy those Land Rovers, and we were criticized left and right for the expense,” Mr. Daly said. “Do you know what it got us? ‘Lethal Weapon 4,’ which made $285 million.”Mr. Zaslav seems to have taken notes. In February, when Los Angeles hosted the Super Bowl, stars like Charlize Theron and Jamie Foxx and prolific Warner Bros. producers like Greg Berlanti (“Riverdale,” “The Flight Attendant,” “You”) were invited to party in his suite at the new SoFi Stadium. Mr. Zaslav and his key lieutenants bought the suite with the intention of routinely wining and dining talent at football games, concerts and other major events.The stately Warner Bros. complex in Burbank, Calif., is the ancestral home of Humphrey Bogart (“Casablanca”) and Bette Davis (“Now, Voyager”). Mr. Zaslav intends to move into Jack Warner’s old office, a decision based on his stated desire to be near where “the magic happens.” The Warner Bros. administration building is near Soundstage 6, where one of Mr. Zaslav’s favorite movies, “The Maltese Falcon,” was partly filmed.Just one word to the wise, Mr. Zaslav: Don’t park in Clint Eastwood’s spot. He’s had it for more than 50 years and once used a baseball bat to knock out the windows of an interloping car.John Koblin More

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    Ann Sarnoff, Warner Bros. Chief, Is Set to Leave

    LOS ANGELES — Ann Sarnoff, the chief executive of the WarnerMedia Studios and Networks Group, will leave the company, with an announcement coming as soon as this week, three people briefed on the matter said.Ms. Sarnoff, who declined to comment, was chosen to lead Warner Bros. in 2019 despite limited Hollywood experience, becoming the first woman to hold the role. She is departing as WarnerMedia, a division of AT&T, is set to complete a merger with Discovery. Ms. Sarnoff’s boss, Jason Kilar, who has been chief executive of WarnerMedia since 2020, announced his exit on Tuesday.Like Mr. Kilar, Ms. Sarnoff found herself without a seat in the game of musical chairs that accompanies the merging of competing companies, said the people briefed on the matter, who spoke on the condition of anonymity to discuss confidential information. The Warner Bros. Discovery management structure is still unknown, but David Zaslav, the chief executive of Discovery, who will run the new company, is expected to take over at least some of Ms. Sarnoff’s portfolio. She has had a dozen direct reports.Her job has involved oversight of HBO and HBO Max; the Warner Bros. movie and television studio; several cable channels, including TBS and TNT; and a large consumer products division. Breaking down the siloed nature of some of those units has been one of Ms. Sarnoff’s accomplishments.After news of her departure became public, Mr. Zaslav said in an email that Ms. Sarnoff had been “a passionate and committed steward,” leading “with integrity, focus and hard work in bringing WarnerMedia’s businesses, brands and work force closer together.” In an email of his own, Mr. Kilar called Ms. Sarnoff a “first-tier human being” and “the definition of a selfless leader.”Ms. Sarnoff’s job security has been the subject of Hollywood gossip for months, with agents and Warner-affiliated producers insisting that she was on her way out and some members of her team insisting the opposite. That kind of speculation can be deadly in show business, with whispers congealing into conventional wisdom, often resulting in an irrecoverable position of weakness in the view of Hollywood’s creative community.To be fair, Ms. Sarnoff, whip smart and affable, never got the opportunity to really do her job. The pandemic shut down the entertainment business roughly seven months after she started. AT&T, which hired her, decided to spin off WarnerMedia last May.Before joining WarnerMedia, Ms. Sarnoff held leadership roles at Nickelodeon, the Women’s National Basketball Association, Dow Jones and BBC America. More