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Merger talks between David Zaslav of Warner Bros. Discovery and the people over at Paramount are at a very early stage, I am told. So is the air of desperation for both parties and the media industry in general.

If you havent noticed, this isnt a great time to be running a media company. For now, Comcast makes a lot of money, combining cable and broadband with NBCUniversals various programming. But its stock is well off its highs.

Investors are calculating weak earnings growth from crappy ad revenues, cord-cutting and a lot more. Comcasts cable business is sputtering. People arent going to the movies, and its streaming service, Peacock, lost $3 billion this year.

Yikes!

Disney is an even bigger train wreck. CEO Bob Iger probably wishes he was back on the beach instead of pitching his studios increasingly insipid programming. Likewise, his streaming service is equally a disaster, and no one believes his wokeness (transgender greeters at Disney parks and same-sex kissing scenes in animated movies) is going to help the bottom line.

Disney+ has lost $11.4 billion since inception in 2019.

Double yikes!

As CEO of Warner Bros. Discovery, the aforementioned Zas is doing a great job (under difficult circumstances) of combining WarnerMedia and Discovery. Hes streamlining and getting rid of merger debt. He has $5 billion in free cash flow to buy stuff. His stock is up nicely from its post-merger lows when investors bet Zas would be drowning in red ink.

Yet some red is still there in the form of debt $40 billion of it. His streaming service barely breaks even (as if thats a good thing), meaning he might be running a business slowly on the verge of doomsday.
One already there is Paramount, or course. Its difficult to know where to begin in describing this mess. If current trends continue, the companys streaming service could lose close to $2 billion this year on a market cap of around $10 billion. (By comparison, Comcasts $3 billion in streaming losses comes on a market value of $177 billion.)

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Paramounts programming has been described as a melting ice cube. CBS has an NFL rights deal, but the costs are huge, and in an era of cord-cutting, even Sunday football is a ratings challenge as a younger generation watches games on their phones instead of TV.

It has a large studio in Paramount, but it loses money. It also has $15 billion in debt and scrounges to generate cash to pay bondholders, according to the ratings agency S&P.

So why does Zaslav (allegedly) want this POS? Hes a dealmaker first and foremost. Hes considered particularly adept at integrating businesses, a skill honed as a long-time executive of NBCUniversal, then owned by General Electric.

Then, GE was led by Jack Welch, also known as Neutron Jack. Zaslav, a Welch protg, has cut lots of costs and hes not finished. He also likes parts of the business (Paramount Studios and its library among them) and Paramount is desperate to sell.

Most analysts, like LightSheds Rich Greenfield, are skeptical. This is bulls–t, he tells me, noting that Zas would still be paying billions for that melting ice cube. Greenfield points to weeks of leaks about potential suitors presumably from Paramounts desperate bankers with no concrete deal on the table.

Meanwhile, Zas has held only very preliminary talks, which also shows some hesitancy. Much of it is centered on buying the interest of Shari Redstone, who controls Paramount and its various assets (CBS, MTV, a studio) through National Amusements, the holding company created by her late father, media mogul Sumner Redstone.

Her stake is worth at most $2 billion, which is less than the deal price for the whole thing, though its unclear how that translates into shareholder value.

If he does pull the trigger, Zas will be solving Redstones and Paramounts long-term problems she obviously needs to unload the melting ice cube to preserve some semblance of her inheritance but not his own.  Im told he knows the media business is coming apart, for all the reasons I outlined.

Zas also knows buying Paramount and successfully integrating it inside Warner Bros. Discovery is only delaying the market reaction to his (and Big Medias) own inevitable moment of truth.

People who know Zas say his endgame is something grander: To ultimately team with Big Tech, which has the money and is becoming the ultimate distributor of programming.

But first he needs to buy some time maybe buying Paramount with a successful integration does that and then praying for a change in DC, from the deal-hating Biden lefties who would block Big Tech from getting bigger.

Donald Trump, if hes the next president, wasnt so deal-friendly either (recall his unsuccessful lawsuit to block the AT&TTime Warner tie-up). But the regulatory types appointed by Trump will be much more free market than any of the apparatchiks in the Biden administration. And any free-market type will tell you the media businesss only real long-term solution is Big Tech.

Warner Bros. Amazon here we come or so Zas hopes.

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The Gators, a top QB and a $13.85 million NIL deal gone wrong: What to know and what’s next

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The Gators, a top QB and a .85 million NIL deal gone wrong: What to know and what's next

Jaden Rashada, a former ESPN 300 quarterback recruit, sued the University of Florida and coach Billy Napier on Tuesday. Rashada is claiming he was defrauded of millions of dollars in name, image and likeness money.

The lawsuit, among other things, alleges that Napier promised the player’s father a $1 million “partial payment” upon signing. Rashada never got the money, and the boosters never fulfilled the deal, the lawsuit states.

It is the latest in a long saga involving the player and the school. Now, Rashada is the first college athlete known to sue his coach or a booster due to a dispute over an NIL deal.

What’s next for Rashada and Florida? Our reporters break it down.

How did we get here?

Rashada was ranked No. 31 overall in the 2023 class and had a prep career that featured several transfers. His freshman season in high school was played at Liberty High School (Brentwood, California). He then transferred to IMG Academy in Florida before going back to California to play three seasons at Pittsburg (California) High School. His college decision came down to two Florida schools and two big NIL numbers.

Rashada committed to the Miami Hurricanes in June 2022. The lawsuit states that Rashada had a $9.5 million NIL promise with the Canes. But Rashada decommitted that November and promptly flipped to the Florida Gators and Coach Napier. He signed his national letter of intent during the December signing period. However, he didn’t enroll at Florida, and his arrival in Gainesville was contingent on a four-year, $13.85 million NIL deal. Rashada asked for a release from his letter of intent when the deal fell through.

The Gator Collective, an independent fundraising organization that distributed money to UF athletes at the time, was responsible for the deal. However, the financial backing did not materialize, and the Gator Collective terminated the contract. Rashada was released from his letter of intent. He then took a visit to Arizona State and committed to play for the Sun Devils, arriving on campus in July 2023.

Rashada started the first two games of the season for Arizona State, but an injury kept him out for most of the season. In three games, he was 44-of-82 for 485 yards, with four touchdowns and three interceptions.

Rashada entered the transfer portal on April 18 and is now transferring to Georgia, where he will have four years of eligibility remaining. — Tom VanHaaren


What’s next for Rashada?

Georgia emerged as Rashada’s likely transfer destination soon after he entered the portal. He selected the Bulldogs on April 25, captioning his Instagram announcement, “Compete with the BEST.” Rather than vying for the starting job at ASU with emerging Michigan State transfer Sam Leavitt, Rashada enters a situation where he will play behind Georgia’s Carson Beck, a top Heisman Trophy contender and NFL hopeful.

Barring an injury to Beck, Rashada will use the 2024 season for developmental purposes, while absorbing a different offense under coordinator Mike Bobo in Athens.

A realistic goal would be to start in 2025 for a Bulldogs team always in the national title hunt. He would need to beat out primary challenger Gunner Stockton, who enters his third season in the Georgia program and gained valuable experience this spring. Both Stockton and incoming freshman Ryan Puglisi ranked among ESPN’s top 110 recruits in their respective classes. Coach Kirby Smart likes to have four scholarship quarterbacks on his roster at all times, and the team has a 2025 commitment from ESPN 300 recruit Ryan Montgomery.

Rashada is the most decorated quarterback prospect of the bunch, but he will need to adjust quickly, especially with Stockton ahead on the learning curve. — Adam Rittenberg


How did this affect Florida on the field?

The Gators signed Rashada in December 2022, anticipating he would compete for the starting job with veteran Graham Mertz, who transferred in from Wisconsin. Without him, the job went to Mertz, who threw for 2,903 yards, completed 73% of his passes and threw 20 touchdown passes to three interceptions last season. Losing Rashada did not help Napier from a public relations standpoint, as he drew ire from the Florida fan base — especially after a 5-7 finish to 2023.

Florida did have a plan for its future, though, as Napier had a longstanding commitment from D.J. Lagway, the top-rated quarterback in the class of 2024. Lagway committed to Florida just weeks before Rashada signed his letter of intent, and the Gators were in a massive fight to keep Lagway as other schools went after him as signing day approached last December. Lagway has said Clemson, USC and Texas A&M all made late pushes, but he ultimately signed with the Gators and enrolled early, going through spring football.

His decision to come to Florida was absolutely huge for Napier, who has yet to find solid footing headed into Year 3 and desperately needed Lagway to sign. Mertz is back for one more season and is the presumptive starter. But there is a lot riding on this season for Florida and for Napier in particular. With the season opener against rival Miami, Florida fans want to see progress and results immediately. If Mertz struggles, do not be surprised if fans start calling for Lagway. — Andrea Adelson


Could the Gators face any NCAA repercussions from Rashada’s claims?

The NCAA alerted Florida almost a year ago that it was investigating claims that the football program had violated recruiting rules, according to documents obtained by The Associated Press. ESPN’s Mark Schlabach confirmed the investigation was related to Rashada’s recruitment.

Rashada claims in his lawsuit that Napier directly promised Rashada a $1 million payment from a booster if he signed with Florida, which would be a violation of the NCAA’s policies. The NCAA penalized Florida State and suspended one of its coaches in January for getting involved in NIL offers made to a prospect.

However, the NCAA sent a letter to its schools in late February explaining that it was pausing all open enforcement cases “involving third-party participation in NIL-related activities” after a federal judge in Tennessee granted an injunction that prohibited the NCAA from enforcing some of its rules. That case was filed by Tennessee’s attorney general after the NCAA opened an investigation into the Vols’ recruiting tactics.

Any other high-profile enforcement actions taken by the NCAA — such as a penalty for Napier or the Gators — could invite additional lawsuits at a time when the association remains vulnerable to antitrust scrutiny, which makes it unlikely that any NCAA punishments could be coming soon. — Dan Murphy

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Yankees ace Cole faces hitters, eyes June return

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Yankees ace Cole faces hitters, eyes June return

NEW YORK — New York Yankees ace Gerrit Cole says he thinks he could return to a major league mound in June after facing hitters for the first time since spring training.

The reigning AL Cy Young Award winner, wearing a full pinstriped uniform, threw 20 pitches to Oswaldo Cabrera and Jamai Jones before Tuesday night’s game against Seattle.

Cole had thrown five bullpen sessions before the batting practice. The 33-year-old right-hander, sidelined by elbow nerve inflammation and edema, said he will have one or two more BP sessions before starting a minor league rehabilitation assignment.

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Cubs activate Swanson ahead of Braves series

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Cubs activate Swanson ahead of Braves series

CHICAGO — The Chicago Cubs on Tuesday activated shortstop Dansby Swanson from the 10-day injured list and recalled infielder Luis Vázquez from Triple-A Iowa.

Swanson, 30, was placed on the injured list May 8 because of a right knee sprain. He’s batting .209 with three doubles, one triple and four home runs in 37 games.

Vázquez, 24, earned his first major league call-up after batting .262 with 10 doubles and three homers in 39 games with Iowa.

The Cubs opened a home series against Swanson’s former team, Atlanta, on Tuesday night. He was in the lineup, batting eighth and playing shortstop. In the corresponding roster moves, the Cubs optioned Pete Crow-Armstrong and infielder Miles Mastrobuoni to Iowa.

Information from The Associated Press was used in this report.

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