News reports say Tribune Co shareholders today formally voted to approve an $8.2 billion plan to take the company private. The company said 97% of the shares cast OKed the $34-a-share buyout led by a group that includes Chicago real estate tycoon Sam Zell. Half the company's shares were already bought back at the $34 price. Wall Street is liking this deal less and less, and Tribune stock fell below $26 in last week's rdownturn. As to questions whether the funding will remain in place, chief executive Dennis FitzSimons told shareholders the buyout accord has a "tightly written" clause governing any pullout by the financing group that's based on adverse developments in the newspaper industry as a whole, rather than just at Tribune. Because of that, FitzSimons said, "we don't anticipate, nor do our financing sources anticipate, an invocation of that clause." FitzSimons reiterated that Tribune expects the deal to close in the fourth quarter, pending approval by federal regulators, and he added that Tribune's isn't planning to shed any newspaper assets as part of the buyout. Today's stock price is right near $28. Meanwhile, I still say that Tribune's 20,000 employees including those at the Los Angeles Times will get screwed by the Zell/ESOP plan which depends upon cash flow results to pay down the massive debt.

UPDATE: Michael Bay Changes Mind

There's more fallout today from yesterday's announcement that Paramount has gone from supporting both Blu-ray and HD DVD formats to just the losing high-def format HD. An obviously vexed Michael Bay wrote in a forum posting on his "Shoot for the Edit" website that he will not make a Transformers sequel because of it. "I want people to see my movies in the best formats possible. For them to deny people who have Blu-ray sucks! They were progressive by having two formats. No Transformers 2 for me!" Bay's outburst is thought to be the first time a director has openly criticised a studio for its choice of high-def formats. And this'll come as a surprise to the studio bosses who have been salivating over the brand new franchise. My question to Paramount is: was the $50 million I reported for the deal really worth it?

Meanwhile, I hear that Paramount's decision could also cause problems with Steven Spielberg and George Lucas over the Indiana Jones franchise. I've got more clarification about the helmer's format fence-sitting position which was highlighted in that one line notation yesterday. Spielberg's Paramount movies like Saving Private Ryan and War of the Worlds are not included in that studio's HD DVD deal. Nor will the director give permission to Universal to include his titles (like Jaws, E.T., and Jurassic Park) in that studio's long-time exclusive support of the HD DVD format. Spielberg, in fact, is so touchy on this format-choosing subject that, back in February, the so-called HD DVD Promotions Group issued and then retracted a "coming soon" list of several of his titles, tacking on this abject apology. People around the director keep emphasizing that Spielberg is a "big supporter" of Blu-ray, even if Universal and now Paramount don't. The only Spielberg pic in the high-def pipeline on either format is Sony's fall release in Blu-ray of Close Encounters Of The Third Kind timed to its 30th anniversary. Specifically for Close Encounters Blu-ray, Spielberg approved the new high-def transfer, recorded a new intro and OKed a storyboard comparison.

See my previous: Desperation Move & Cash Grab? Or Bloodier Blu-ray/HD-DVD War?

ICM didn't renew the contract of Jim Osborne, whose clients included Hayden Christensen and who is another former Ed Limato protégé. The agency expects to retain Jim's clients.

I just heard that Universal won the negotiations and acquired (not just optioned) The New York Times No. 1 non-fiction bestseller Lone Survivor and Navy Seal author Marcus Luttrell's underlying life rights for seven figures. (I hear $2 million upfront, plus 5% against adjusted gross, as well as other payments.) This follows a frenzied Hollywood bidding war that included Sony, Warner and DreamWorks (which really wanted the book for Steven Spielberg and Michael Bay). I'm told that Barry Spikings brought the project to Akiva Goldsman, who in turn took it to Pete Berg. Putting Spikings and Goldsman on as producers, Uni bought the book for Berg who'll be writing and directing this as his next project for his Film 44 production company. He, of course, is the director of the upcoming The Kingdom about a team of U.S. government agents sent to investigate the bombing of an American facility in the Middle East. Uni made that pic as well as United 93; that helmer Paul Greengrass is adapting Rajiv Chandrasekaran’s book about the Green Zone in Baghdad, Imperial Life in the Emerald City, for the studio as well. How interesting that liberal Hollywood was so hot for this latest patriotic tell-all by a proud conservative. Book agent Ed Victor and Hollywood lawyer Alan U. Schwartz of Greenberg Traurig brokered the Lone Survivor deal. This seems to be another in what is a growing trend in the movie business to bring events about post-9/11, Iraq/Afghanistan and the troops into the plots of its pics. See my previous: Patriotic War Book Heats Up Hollywood

Sony's Superbad had a better than expected Sunday so the official weekend total is now $33 mil, not just $31 mil. "We had an exceptional hold, one of the best I have ever seen, and it looks like we will be only down about 2% off of Saturday's number." See my previous: 'Superbad' Trounces Competition & Helps Summer 2007 For Record

MONDAY AM UPDATE: Here's the official Hollywood announcement today. Note how there's no mention of the money Paramount (I'm told $50 million) and DreamWorks Animation (I'm told $100 million) is receiving for "promotional consideration" from the HD DVD side to continue with what is widely recognized as the losing high-def format. Also note that Fox and MGM right afterwards announced today they were releasing even more Blu-ray titles. Also note that Steven Spielberg is still fence-sitting (although this fall Sony will release in Blu-ray its catalogue title Close Encounters Of The Third Kind, the first of Spielberg's pictures to do so in either format). Sources are telling me these moves are "really out of desperation" by HD DVD and "a cash grab" by the studios. Hollywood was lopsided in favor of Blu-ray: until now, 7 of the 8 major movie studios (Disney, Fox, Warner, Paramount, Sony, Lionsgate and MGM) supported Blu-ray, and 5 of them (Disney, Fox, Sony, Lionsgate and MGM) release their movies exclusively in the Blu-ray format. Only Universal was exclusively HD-DVD. The $100 mil is a huge $$$ infusion for the Shrek-dependent public company DreamWorks Animation -- especially curious because, earlier this year, Jeff Katzenberg told a Bank of America conference that he expected "neither" high-def DVD format to win the war "because they're not going to become the next platform." I have more analysis below:

"Paramount Pictures, a unit of Viacom Inc. and DreamWorks Animation SKG each announced today that they will exclusively support the next-generation HD DVD format on a worldwide basis. The exclusive HD DVD commitment will include all movies distributed by Paramount Pictures, DreamWorks Pictures, Paramount Vantage, Nickelodeon Movies and MTV Films, as well as movies from DreamWorks Animation, which are distributed exclusively by Paramount Home Entertainment. The companies each said that the decision to distribute exclusively in the HD DVD format resulted from an extensive evaluation of current market offerings, which confirmed the clear benefits of HD DVD, particularly its market-ready technology and lower manufacturing costs. Paramount Home Entertainment will launch its exclusive HD DVD program with the release of the blockbuster comedy hit Blades of Glory on August 28th and follow with two of the biggest grossing movies of the year Transformers and Shrek the Third. These three titles alone represent more than $1.5 billion in box office ticket sales worldwide.

'The combination of Paramount and DreamWorks Animation brings a critical mass of current box office hits to consumers with a line-up of live action and animated films that are perfect for HD DVD,' stated Brad Grey, Chairman and CEO of Paramount Pictures, which is currently the leading studio in domestic box office. 'Part of our vision is to aggressively extend our movies beyond the theater, and deliver the quality and features that appeal to our audience. I believe HD DVD is not only the affordable high quality choice for consumers, but also the smart choice for Paramount.'

'We decided to release Shrek the Third and other DreamWorks Animation titles exclusively on HD DVD because we believe it is the best format to bring high quality home entertainment to a key segment of our audience – families,' stated DreamWorks Animation CEO, Jeffrey Katzenberg. 'We believe the combination of this year’s low- priced HD DVD players and the commitment to release a significant number of hit titles in the fall makes HD DVD the best way to view movies at home.'

Paramount Home Entertainment will issue new releases day and date as well as catalog titles exclusively on HD DVD.  Today’s announcement does not include films directed by Steven Spielberg as his films are not exclusive to either format."

SUNDAY PM: I've learned there will be two new developments announced later this week today in the ongoing Blu-ray vs HD-DVD format war: separate HD-DVD deals with Paramount and DreamWorks Animation that involve major millions of dollars. I've got a confidential report from Pali Research managing director Richard S. Greenfield, a media analyst for entertainment and cable, that discussed the deals (see below), spinning them as "the format war is now set to intensify". But sources have given me updated details which show the HD-DVD side is paying through the nose -- I'm told $50 million to Paramount, and $100 million to DreamWorks Animation -- to try to show the strength of what we all know is a dying format. After all, the consumer is already making a decision between formats: even though Toshiba-backed and Microsoft-backed HD-DVD players are far cheaper right now, Sony-backed Blu-ray prices are rapidly coming down. After all, the consumer is already making a decision between formats: even though Toshiba-backed and Microsoft-backed HD-DVD players are far cheaper right now, Sony-backed Blu-ray prices are rapidly coming down. And Blu-ray high-def movie discs outsold films on rival HD-DVD 2-to-1 in the U.S. in the first half of 2007, Home Media Research said last week. Meanwhile, Blockbuster plans to line its shelves with Blu-ray DVDs which are "significantly outpacing" HD-DVD rentals. Here's the Pali Research memo:

"Based on conversations with multiple sources, we believe that Paramount is set to make the vast majority of its catalog available exclusively in the HD-DVD format (unclear whether that includes titles from its sister studio DreamWorks).

While Paramount (owned by Viacom) has some on-going commitments to release new release titles in Blu-ray, it is unclear how long that commitment lasts and how comprehensive the agreement is.

Up until now, Paramount and DreamWorks (live action) were releasing in both Blu-ray and HD-DVD formats. The reason for shifting catalog exclusivity to HD-DVD would appear to be substantial upfront dollars. We expect these dollars could have a meaningfully positive impact on Viacom's film profitability in 2H '07 and full-year 2008.

Separately, it appears that DreamWorks Animation is set to announced that 3-5 key titles (some catalog, some new releases, but details are still fuzzy) over the next several years will be made available exclusively in HD-DVD.

While we are somewhat surprised to see DWA favor a format given its smaller number of releases in a year similar to Paramount, we suspect the driving force of the decision was upfront payments to increase their support of HD-DVD. Given DWA's size, the financial impact on EPS in 2008-2010 could be a positive catalyst for the stock (we are still assuming that Shrek The Third is coming out in both formats in November 2007).

Prior to these revelations, we believe HD-DVD was essentially "dying a slow death," as Universal was the only studio exclusive to HD-DVD (and its box office was not strong enough this year to make a difference), far outweighed by the Blu-ray only studios (Sony, Fox, Disney, MGM, and Lionsgate.) Even though Sony's PS3 has been disappointing from a sales standpoint, Blu-ray DVD sales had begun to notably accelerate based on the content being made available. However, the Paramount/DWA moves alter the landscape meaningfully, as Paramount (Including DW/DWA titles) is the leading theatrical distributor year-to-date (enabling its catalog DVDs to "ride the coattails" of the success of successful theatrical films being released on DVD for the first time.)"

 

News reports say early Nielsens show that Friday's premiere of The Disney Channel's made for TV High School Musical 2 was the most-watched basic cable television program of all time. With 17.2 million viewers, it was also the most-watched basic cable movie of all time, the highest-rated television program ever for children age 6 to 11 and the second-highest-rated television program of all time (behind only the 2004 Super Bowl) for viewers age 9 to 14. It also was the most-viewed Friday television telecast, cable or broadcast, in the past five years. Now the $7 million musical sequel will be shown in 100 countries. All this shows that TV viewers will respond to good, clean, energetic fun. (As Time magazine reviewed, "It's a raging bacchanal of hand holding, milk drinking and explicit thespianism!") The pic's phenomenal success clearly means that not everything in entertainment has to be edgy. Could Hollywood suddenly be hungry for clean-cut? The pic's star, tween hearthrob Zac Efron (the 19 year old with pipes known for his blue eyes and bowl haircut), is now taking meetings with Francis Ford Coppola.

The sequel repeated Saturday night and tonight there's a sing-along. (Fans are supposed to download song lyrics off the Internet.) Just think about it: the little $4.2 million Kenny Ortega directed and choreographed original movie urging kids to be true to their dreams has been seen by more than 160 million people around the world. Most importantly to the Walt Disney Co, it has morphed into a $100-million-plus bonanza for all divisions of the company. It has sold more than 6.5 million DVDs, it was the No. 1-selling CD of 2006, its series of books about the characters sold 4.5 million copies, its stars sold out a 42-city national tour, it even spawned an ice show. TV analysts say the High School Musical franchise also has meant a triple jump in revenue for the Disney Channel. There's an upcoming promotion with Wal-Mart, and about 300 licensed products will reach stores by the end of the year.

 

SUNDAY AM: It was the 6th "up" weekend in a row in overall summer box office which looks increasingly likely to set a new record for 2007. Summer to date's domestic box office revenues of $3.82 billion (Media By Numbers) this year already have passed 2006. So the all-time record for May 1st through Labor Day is certain to go down since 2004 was the precedent setter with $3.95 billion. Sony's Superbad helped by doing supergood at the domestic box office this weekend as the studio told me Judd Apatow's low-cost coming of age comedy opened with a surprisingly big $31.2 million from 2,948 theaters. "It trounced all expectations," a studio source explained. This is the only time a summer movie released after August 15th has gone over $30M. The breakdown of moviegoers seeing Superbad was 52% male and 48% female, with 60% of the debut weekend audience between the ages of 18-30. Once again, the comedy wheel from the fertile mind of mogul-in-the-making Apatow and his buddies produced another sweet but raunchy laugher that both young and older moviegoers want to see after months of bloated blockbusters. Instead of hundreds of millions, Superbad cost only $20M. For weeks the pic's awareness level tracked lower than had been hoped, but great reviews made the difference for $12.3 mil Friday and $10.4 mil Saturday and a projected $8.4 mil Sunday. Here's the rest of the updated box office: Sick Of Bloated Blockbusters, Filmgoers Flock To Small Teen Comedy 'Superbad'

On Friday, a William Morris assistant sent out an email (see below) to scores of the agency's staff members and some outsiders as well. This is a lesson in what assistants should never do. Shai Steinberger (Harvard '04) worked for WMA's David Lonner and Jeff Shumway. His email is a slice of life of what it's like to work there. Good thing Steinberger is going back into stand-up. Because it's safe to say he'll never get a job at a tenpercentery again. On the other hand, he should get a TV development deal:

JLSasst/WMA
08/17/2007 05:03 PM
To: BHAssts, bhagents, BHMailroom, BHTrainees, BHFloaters, NYAssts, NYAgents, Accounting, IT, BHHelp
Subject: I love you, WMA

Dear Friends,
After an incredibly rewarding 2+ years, I am moving on from WMA.  It is not going to be easy leaving behind the two best-looking Indian men in the United States and the sexiest Chief Operating Officer in the entertainment business (Hi Irv!) but a man’s gotta follow his dream: Beginning next week, I will be a tattoo artist at “Hal’s Tattoos and Piercings” in Venice Beach.

There are a lot of things I am going to miss about this place.  I will miss Mario De Leon’s enlightening speeches about the cutthroat nature of the entertainment business.  I will miss mistaking Molly Sims for a new assistant and urging her to come quickly to the Atrium for free Koo Koo Roo on a Thursday night. I will miss whooping and hollering at the top of my lungs for John Travolta in the 151 lobby. I will miss trying (unsuccessfully) to get lucky with a gorgeous summer intern in the legal files closet of the 150 building. I will miss the tattoo of Joanne Wiles on Jessica Steindorff’s ass. And I will miss sexual harassment training which has been enormously educational for me.

I will miss Chris Petrikin and Christian Muirhead chastising me for being featured in Esquire’s 2005 “Profile of the American Man”. (Hey – I can’t help being so damn sexy!)

I will miss introducing myself to Jim Wiatt at the 2005 WMA Christmas party and Jim responding that he recalled seeing me unshaven on October 16th of that year. I will miss Ian Aroughetti holding my hair back at the 2006 WMA Christmas party in the wake of my immature and unbridled exploitation of the open bar. And I will miss Aaron Reed selflessly driving me all the way back from the Cabana Club that night to Santa Monica stopping every 5 minutes along the Sunset Strip for me to puke my guts out. And I will miss David Lonner taking me to The Grille the next day for my “year-end” meeting - David proudly parading my still-drunk ass (wearing a T-shirt and carrying a 1-Liter bottle of Fruit Punch Gatorade) around the biggest power-lunch venue in the entertainment business, introducing me to all the biggest producers in Hollywood and Endeavor uber-agents.  And I will surely never forget passing out in our booth after Michael London decided to sit down at our table to discuss his “upcoming slate” – I vaguely recall drifting off into peaceful slumber dreaming about successful independent films that are artistic but also very commercial. (Think Sideways.) But most of all, I will [miss] Jeff Shumway asking me on a daily basis what color thong I am wearing underneath my suit (lime green today, btw).

I would like to thank David Lonner for teaching me that Asian mysticism and Jewish theology are not mutually exclusive and that being Jewish is more than just being part of a religion – it’s being a powerful man in show business. And Jeff Shumway – I think it’s safe to say that it was love at first sight. I saw that perfect Windsor knot in your tie and the no-bullshit, 3-foot, Mary Poppins-style attorney briefcase you were holding – and I knew we were meant to be together. To both of you – you are the two best friends and mentors one could have in the entertainment business and I know that years from now, when I’m cruising up the PCH on a Ducati motorcycle in a Karate GII, listening to U2 while muttering passages from the Old Testament – I’ll be thinking of both of you.

[More thanks to a long list of names]

I would also like to thank Jim Wiatt just like Steve Martin thanked Steven Spielberg at the 75th Annual Academy Awards – because it can’t hurt.

Over & Out,
Shai

In Friday's article about Steven Seagal and the Pellicano scandal, Los Angeles Times staff writer Chuck Philips regurgitated claims about the conduct of the U.S. Attorney's office from one of Seagal's attorney's, Jan L. Handzlik. Then Philips wrote: "Thom Mrozek, a spokesman for the U.S. attorney's office, declined to comment." I have learned this is not true. When I asked Mrozek for comment on the Seagal piece, the public information officer forwarded me the statement (see below) he issued to Philips, who even confirmed its receipt to the PIO four minutes later.

I don't understand why the Pulitzer Prize-winner failed to use it. Then again, it's been painfully clear that Philips' agendas (1) upon agendas (2) upon agendas (3) upon agendas (4) while covering the Pellicano case has been to carry water for accused Hollywood P.I. Anthony Pellicano's defense attorneys. I've said it before, and I'll say it again: the LA Times should reassign the Pellicano story. I also don't understand why the Los Angeles Times is refusing to make a correction to Philips' Friday article or print Mrozek's statement. Here it is:

From: Mrozek, Thom (USACAC)
Sent: Wednesday, August 08, 2007 4:41 PM
To: Philips, Chuck
Cc: Thom Mrozek
Subject: Response re: Jan quote

OK, this is official.....should be attributed to me.

"We never comment on discussions we have with attorneys representing defendants, targets of investigations or witnesses. I should add that the government has never charged or accused Mr. Seagal of being involved in the incident that led to the search of Pellicano's office.

"Investigators decide on the most appropriate time to conduct an interview, and that might not always coincide with when the person would like to be interviewed."

Now, off the record: you may want to go back to Jan and ask him to define "information" and to revisit the immunity issue.

Thom Mrozek
Public Affairs Officer
United States Attorney's Office - Los Angeles
www.usdoj.gov/usao/cac

I'm told that The Hollywood Reporter's newly named editor Elizabeth Guider misled Merv Griffin's people. They were told by her on Friday that Ray Richmond's claims about the TV legend's personal life had been removed from the paper's website and blog. But she did not inform them until 24 hours later that she restored the commentary almost immediately. Guider's email sent to them today said she made her decision after deciding the piece was not "malicious, mendacious or unfair-minded". Griffin's people have canceled a planned tribute ad Monday in THR. I understand that The Hollywood Reporter's publisher John Kilcullen was away when this controversy erupted. The troubled trade plagued by staff defections and other turmoil has received a multitude of Industry complaints about its decision to run Friday's article. It appeared on the day of the funeral mass for Griffin. See my previous:

1. H'wood Reporter Removes Then Restores Richmond's Merv Piece On Blog & Website
2. Why'd The Hollywood Reporter Do That?

SUNDAY AM: Sony's Superbad did supergood at the domestic box office this weekend as the studio told me Judd Apatow's low-cost coming of age comedy opened with a surprisingly big $31.2 million from 2,948 theaters. "It trounced all expectations," a studio source explained to me. This is the only time a summer movie released after August 15th has gone over $30M. "We started the summer in a record way and are finishing it that way," a Sony exec told me. The breakdown of moviegoers seeing Superbad was 52% male and 48% female, with 60% of the debut weekend audience between the ages of 18-30. "Word of mouth carried this film nicely," an exec said. After weeks when the pic's awareness level was tracking lower than had been hoped, overwhelmingly great reviews from even prestige media like The New York Times made the difference for $12.3 mil Friday and $10.4 mil Saturday and a projected $8.4 mil Sunday. Once again, the comedy wheel from the fertile mind of mogul-in-the-making Apatow and his buddies produced another sweet but raunchy laugher that both young and older moviegoers wanted to see after months of bloated blockbusters. (And my savvy box office gurus predicted back on May 1st that this pic would be the late-summer sleeper.) Instead of hundreds of millions of dollars, Superbad cost only $20M. "So the budget-to-gross ratio on this one could be really something special when we get to the end of the run," a Sony source told me.

Summer to date's domestic box office revenues of $3.82 billion (Media By Numbers) this year already have passed 2006. So the all-time record for May 1st through Labor Day is certain to go down since 2004 was the precedent setter with $3.95 billion. This was the 6th "up" weekend in a row in overall summer box office. But you wouldn't have known it from 5th place newcomer The Invasion from Warner Bros, which tanked even worse than anyone thought. Four directors later, this bomb opened to only $2 million Friday and $2.2 million Saturday from 2,776 runs for only a $5.7 million weekend. (Nicole Kidman and Daniel Craig woke up with fleas from this dog.) And another debut, The Weinstein Co's The Last Legion, finished out of the Top 10 (in 12th)altogether with only $2.6 mil this weekend from 2,002 venues despite those ads making the movie look like a clone of the hit pic 300. (Talk about problems: the horribly reviewed Legion was supposed to be released back in October 2006, then moved down, and moved down again, to April. Finally, an agreement was reached whereby TWC had to distribute The Last Legion in at least 1,500 theaters by August 24th. The P&A money was kept to only a bare minimum, and the word "dumped" has even been used.)

The rest of the Top 10 movies finished in predictable order. No. 2 went to New Line's holdover Rush Hour 3 which took in $6.3 mil Friday and $8.7 mil Saturday from 3,778 dates -- down 56% -- for a new cume of $88.1 mil. Holding up starting three weeks in release, Universal's The Bourne Ultimatum earned $5.7 mil Friday and $8.1 mil Saturday in 3,701 dates for a big new cume of $163.8 mil. Meanwhile, the Matt Damon threequel rolled into the UK this weekend as No. 1 with twice as big an opening day as the franchise's previous two.

Still hanging in at #4 on its fourth Friday, 20th Century Fox's The Simpsons Movie took in $6.6 mil from 3,162 plays for a new cume of $165 mil. Paramount's Stardust continued not to shine, placing 6th with just $5.2 mil from 2,565 theaters for a dismal new cume of $19 mil. (Ouch!) No. 7 went to New Line's Hairspray which took in $4.4 mil from 2,389 venues for a new cume of $100.7 mil. Disney's Underdog at #8 continues to underwhelm with a new cume of just $31.7 mil after a $3.6 mil from 2,551 theaters. No. 9 was Warner's Harry Potter And The Order Of The Phoenix with a giant new cume of $278.8 mil following this weekend's $3.7 mil from 1,955 runs. And, rounding out the Top 10, Universal's I Now Pronounce You Chuck And Larry finished the weekend with $3.5 mil from 2,258 venues for a new cume of $110.3 mil.

I love Ben Silverman because he's the gift that keeps on giving me material. Another day, so another antic. His latest took place at Tuesday's one-day retreat in Santa Monica at Shutters On The Beach for NBC Entertainment and Universal Media Studios personnel. Ben and co-chairman Marc Graboff were leading the so-called "brainstorming". (Hey, stop laughing.) Silverman moderated one panel about how TV and the Internet can work together featuring execs from MySpace, ACT! videogames division, and MSN. But Ben also planned a little motivational stunt. Before the confab, he had made NBC peacock tattoos (the temporary peel-off kind), and asked certain NBC employees to place them on their bodies. Graboff put one on his chest. Flackmeister Rebecca Marks put one on her lower ankle. And two women lifted their T-shirts and put them in the small of their backs. (No doubt taking literally the exec's mantra that he's "just trying to bring sexy back" to the fourth-place network.) No one knew about any of this until the end of the conference when Ben asked everyone to show their NBC spirit -- and the select group unveiled their peacock tattoos. (I'm told some peons can't get the peacocks to peel off. So now they can't be buried in Jewish cemeteries.) I sure hope these gimmicks -- remember the set of chimes he brought to meetings to play the three-note NBC jingle whenever a happy moment occured? -- help NBC's primetime prospects. So far his other stunts for fall include hiring gay-baiter Isaiah Washington on Bionic Woman, getting Jerry Seinfeld on 30 Rock, and programming the week of "Going Green". Bosses Jeff Zucker and Jeffrey Immelt must be proud like peacocks.

It's early still, but I'm told that today's release of mogul-in-the-making producer Judd Apatow's Superbad is already doing better than expected at the domestic box office. After weeks when the pic's awareness level was tracking lower than had been hoped, overwhelmingly great reviews from even prestige media like The New York Times are making the difference. So much so that sources tell me Sony is now projecting a supergood $25 million opening for the low-cost coming of age comedy playing in 2,948 theaters. As of last night, my box office gurus predicted a three-way race for No. 1 this weekend. Expectations were for the trio of films to all finish at $20 mil: New Line's Rush Hour 3 to drop 60%, Universal's The Bourne Ultimatum to go down 40%, and newcomer Superbad to open well. But now the little laugher is pulling ahead. No one's expecting much from Warner's The Invasion which, four directors later, hits 2,776 venues.

Meanwhile, The Weinstein Co's The Last Legion making 2,002 runs should tank despite those ads making the movie look like a clone of the hit pic 300. Oy, talk about problems: Legion was supposed to be released back in October 2006, then moved down, and moved down again, to April. Finally, an agreement was reached whereby TWC had to distribute The Last Legion in at least 1,500 theaters by August 24th. (I've heard differing accounts of whether, if that deadline wasn't met, a $5 mil penalty kicked in or not.) Anyway, insiders have complained to me that the P&A money was kept to only a bare minimum. (The word "dumped" was even used in screaming matches, I'm told.) I understand Dino and Martha De Laurentiis are not exactly happy campers since this film has consumed five years of their lives and now it's barely registering with the moviegoing public in awareness.

The Hollywood Reporter's newly named editor Elizabeth Guider was smack in the middle of today's controversy. Though she was out of town, she first informed TV writer Ray Richmond that his article on Merv Griffin's private life was taken down from his THR-branded blog and the trade paper's website. Then she informed him later that it had been restored. But I see the teaser has been removed from THR's home page. No longer front and center, it's under "TV" and then under "Columns".

I'm told that Merv Griffin's people were shocked by Richmond's unsubstantiated claims and by THR's decision to publish them. And on today of all days when Merv's funeral mass is being held with 500 people expected to attend including Nancy Reagan and Governor Arnold Schwarzeenegger who is giving one of the eulogies. So a shitstorm ensued: they complained to The Hollywood Reporter and wanted to axe a planned tribute ad for Monday. In reaction, the trade removed the article without even an editor's note. Now it's restored. I've got to say, given the friendly relationship between the trades and Hollywood, this isn't exactly an unexpected development. I'm just surprised that a THR editor ran the commentary in the first place.

See my previous: Why'd The Hollywood Reporter Do That?

Well, this is really, really embarrassing for the Los Angeles Times. Because its very, very late article on ICM has a big glaring error right in the very first paragraph. Staffer Lorenza Muñoz writes that Julia Roberts followed Jim Wiatt from ICM to William Morris eight years ago. Never happened. At the time that Wiatt defected in 1999, Julia was still repped by her longtime ICM agent Elaine Goldsmith-Thomas who one year later left to head up production in the NYC office of Joe Roth's Revolution Studios. Roberts already was close  with ICM topper Jeff Berg, who negotiated all her megadeals setting new salary highs for a Hollywood actress. But Julia missed having a BFF agent (like Goldsmith was). Still, it wasn't until 2003 that the superstar left ICM to be repped by party hearty Kevin Huvane at CAA. Sheesh, doesn't the LA Times ever fact-check via Nexis? As for the rest of the article, it merely regurgitates the info I've already posted here over the past year. Meanwhile, the paper might do well to remember that Variety ran a June 22, 2006 story headlined, "Has ICM squandered the momentum that could have come with a restructuring?" without knowing, at that very moment, ICM and Broder already had a signed letter of intent in their hands. I can tell you this: serious discussions are going on right now between ICM and a major agency. So stay tuned.

What a bad decision by The Hollywood Reporter to move Ray Richmond's screed about Merv Griffin's private life from the  scribbler's blog into the print edition today on the occasion of the TV legend's funeral mass today. (Governator Arnold Schwarzenegger will be eulogizing, and Nancy Reagan will be attending.) Sure, Richmond, who'd worked as a talent coordinator/segment producer on The Merv Griffin Show in 1985-86, had every right to express his opinion. But publishing it was unworthy of the Industry friendly trade and more suited to a sensation seeking tabloid. I have to wonder now what does this mean for the future of THR obits: that the trade will continue to report cowardly about moguls while they're alive, but then publish unsubstantiated claims about their private lives once they've died? Despicable.

For a real laugh riot, read how Steven Seagal thinks his movie career -- and I use that term loosely -- went into the crapper only because of being linked by the FBI to the Pellicano scandal. Wassup, Hollywood, you don't think the guy in this photo looks like he's still a hot action hunk? Let's thank Los Angeles Times writer Chuck Philips (who clearly expected everyone to sympathize with this has-been's predicament) for such unintentional hilarity. I particularly enjoyed flackmeister Howard Bragman's frank assessment on the situation. "Let's be honest: Steven Seagal was no Harrison Ford when this happened. But these accusations certainly hastened his decline." As did the double chin. But ain't karma a bitch? Because the reality is that, back when he still made major money at the box office, Seagal was one nasty piece of work. And still is, by most accounts. I surmise Seagal's downfall had less to do with the Pellicano scandal and more to do with Hollywood simply saying good riddance to Mike Ovitz's one-time martial arts teacher. Don't let the confessional door hit you in the ass on the way out, Steven.

I hear there's a frenzied Hollywood bidding war going on today over the No. 1 book on The New York Times non-fiction bestseller list: Lone Survivor: The Eyewitness Account of Operation Redwing and the Lost Heroes Of SEAL Team 10 by Marcus Luttrell. Studio toppers are interrupting their vacations to try to get this book which was sold to Little Brown by superagent Ed Victor for a seven figure advance. How interesting that liberal Hollywood is hot for this patriotic tell-all by a proud conservative.

According to The Washington Post review, it's the true story of American heroism and Afghani humanity, of morality vs survival. In June 2005, Petty Officer turned combat-trained Navy SEAL Luttrell led a four-man team into the mountains of Afghanistan on a mission to kill a Taliban leader thought to be allied with Osama bin Laden. On foot, the SEALs encountered two adult men and a teenage boy. A debate broke out as to whether the trio should be summarily executed to keep them from alerting the Taliban. Luttrell opted to spare the Afghanis' lives. About an hour later, the Taliban launched an attack that killed all the SEALs except Luttrell, who was sure that the three Afghanis he let go turned around and betrayed his team. 

Over the next four days, terribly injured and presumed dead, Luttrell crawled for miles through the mountains until an Afghani village took him in and cared for him. When Luttrell moved in with the Pashtuns, he discovered it is that culture's tradition to protect those who have accepted their hospitality. So when the Taliban came to the village and demanded that the SEAL be handed over, the Pashtuns refused and an all-out battle virtually destroyed the village. All to protect Luttrell. He survived, returned home and received the Navy Cross for combat heroism from President Bush.  "In this rich, moving chronicle of courage, honor, and patriotism, Marcus Luttrell delivers one of the most powerful narratives ever written about modern warfare -- and a tribute to his teammates, who made the ultimate sacrifice for their country," the Washington Post said. Come to think of it, this hot book does sound like a hell of a movie.

How fun to come back from my last day on jury duty and find that Ed Limato has phoned me from his new William Morris Agency temporary digs -- which is CEO Jim Wiatt's own office! I see that, during my absence, the trades finally got around to announcing Ed's tenpercentery move. Of course, DHD readers knew all about it back on Tuesday. (See my previous: EXCLUSIVE: Ed Limato Headed To Morris.) Both Limato and Morris CEO Jim Wiatt kept telling me this afternoon how "very, very" excited they are. I understand Ed was only free to talk to Morris Monday night and his deal was signed this morning. Limato will set up shop in the Morris conference room until the agency figures out where to put him and his entourage. Meanwhile, these Limato clients are officially moving over from ICM right now (there may be four more): Richard Gere, Mel Gibson, Steve Martin, Denzel Washington, Michael Biehn, Thomas Jane, Adrian Lyne, Derek Luke and Sam Neill.   

UPDATED: Is Jim Carrey getting his chain yanked? Because I have breaking details about the Yes Man deal which the comedian's reps negotiated with Warner Bros, and it's a doozie -- so much so that I almost fell off my office chair when I heard about it. He'll receive NO upfront cash and NO first-dollar gross. So Carrey won't get his standard $20M plus 20% (and in some cases $25M -- but that was before he and his projects began to crash and burn). Instead, Jim has a cash-break deal in theory of at most 36.2% on the back end -- which in reality may turn out to be a lot less. That's right, CASH BREAK, which as everyone knows is just one step up from net profits and often referred to as "real net" as a result. But that 36.2% starts to drop like this month's Dow Jones average if Yes Man's cost doesn't top out at $70 million and its P&A doesn't max out at $50 mil. If more bucks than that are spent, then Carrey has to approve the overages otherwise his payday gets smaller even with pure video (explanation: a percentage of 100% of video and DVD sales). I told you this deal was weird: the actor is about to have all the headaches of a producer without the title or the guaranteed paycheck.

The conventional wisdom in Hollywood is always to get as much fixed compensation as you can upfront because you're never going to see the back end thanks to the studios' creative accounting. First-dollar gross changed that, as did rolling gross and the other 32 definitions of deals on movies. But getting top-tier talent for no money upfront with cash-break back end is like a wet dream for Warner Bros. "This is a deal you make with someone who's star has fallen," a studio source told me tonight. Which is why I've learned that Warner Bros execs were privately patting themselves on the back for coming up with it and then dancing in the hallways when Carrey's reps finally went for it.

In turn, Carrey's rep Eric Gold is claiming this is a new paradigm for talent. What I don't get at all is why the co-manager is boasting about being the deal's architect. I hear Gold is spinning that Carrey is now an "equity investor" in Yes Man since the actor is in effect handing over his $20 mil upfront to the production and thus partnering with Warner Bros on the movie just like Village Roadshow. Carrey's interests are now completely aligned with the studio," I'm told Gold is saying. "This deal addresses the problem of superstars and studios not being on the same side of the table." But aren't they supposed to be bargaining on opposite ends considering their divergent interests? Isn't that why there's an impending strike? And if this is such a great deal for Carrey, then why are his reps still actively trying to get the actor his customary $20M upfront and 20% first-dollar gross on the next project?

In my opinion, this has to be the riskiest deal ever made for a major Hollywood star with a major Hollywood studio on a major Hollywood production. Showbiz attorneys tell me they've made deals with no money upfront and cash-break back end like this for top actors on small films for, say, Paramount Vantage. But never on a big film for a big studio. Yet sources close to Carrey insist that he is "more than comfortable" with this deal. Besides, they tell me, "if it all goes to shit, what does he care? He's wealthy. He doesn't need the money." They say Carrey is going into this with "eyes wide open" having been advised by Gold and CAA's Richard Lovett, who "was very supportive" of the deal. Yes, Gold co-manages Carrey with very busy producer Jimmy Miller. But Gold wants his fingerprints all over this one. An unabashed political conservative, Eric believes that Carrey's Yes Man deal is "free enterprise at its best," sources tell me. I even hear that Gold wants to get a group of big stars together and convince them to give up their advance money and first-dollar gross deals in order to become what he calls "equity investors" in their movies, too.

But ever since my exclusive went up online, I've heard nothing but universal shock that Carrey's reps could have recommended such a deal with so much potential downside. (One well-known manager emailed: "Let me put it this way: if his reps were a hospital, they would be shut down for malpractice. This is a new kind of Hollywood stupid.") Then again, their backs were surely against the wall. I'm told studios feel the need now to make Carrey responsible for the bottom line because of all the agita that usually surrounds him on movie sets. Carrey's meltdown on 2005's Fun With Dick And Jane may have been the last straw: it's well-known in Hollywood that Sony had to shut down production for a time until the comedian had pulled himself back together. On Yes Man, he'll pay for such behavior. (In turn, I'm sure the pic's producers Dick Zanuck and David Heyman and director Peyton Reed will be thrilled at the prospect of having Carrey in theory look over their shoulder and monitor the cost caps that are key to his payday.)  

True, the trades last month trumpeted Carrey signing on to Yes Man, a laugher based on a British memoir about a guy who aims to change his life by saying yes to absolutely everything that comes his way. (Think six degrees of separation from Carrey's previous Liar Liar.) But the middling script by Fun With Dick And Jane's Nicholas Stoller had more than once made the rounds of Hollywood before landing in Jim's lap. And the helmer is the uneven Reed, who followed up the excellent Bring It On with the execrable Down With Love and The Break-Up. And then there's Carrey's flailing career and failing popularity; movie after movie of his has collapsed in development (Spielberg's The Secret Life Of Walter Mitty remake, 20th's Used Guys, Paramount's Ripley's Believe It Or Not) and his most recent release, New Line's The Number 23, was dead on arrival. Since then, the actor has sat around booking no major movies beyond toon voiceovers (20th's Horton Hears A Who, a sop for the Used Guys deal going south, and Disney's A Christmas Carol directed by Robert Zemeckis) for nearly a year. See my previous Carrey postings here.

I hear financial model after model was done to figure out the risk reward across the board for Carrey's Yes Man deal. Carrey's comedies, once the older ones that made all that major moolah are factored in, did an average $146M domestic gross at the box office. (But that number drops down to $101M if the average of all Carrey's movies, including the dramatic dogs, are taken into account.) Considering Jim's waning popularity, it's a big question mark whether Carrey can carry a comedy to $150 mil anymore. If he does, and the budget and marketing overages don't occur, and Jupiter aligns with Mars, then I'm told it's possible for the actor to make a phenomenal $78M. Also, the way this deal is structured, he'll pay less of it to the IRS. But why worry about Uncle Sam's tax bite before winning the lottery? Really, this could just turn out to be the worst talent deal ever in Hollywood.  

Ever since Janet Hill got dumped as Brad Grey's exec VP of corporate communications (at DreamWorks' insistence), the Paramount boss has been without a press rep. Enter Steven Rubenstein to the rescue as spokesperson. Interesting that the son of PR legend Howard Rubenstein (aka "The Fixer") and the heir to the firm's throne is now personally handling Grey after all those Paramount vs DreamWorks stories. But Steven has been quoted as saying that "part of why people hire us is we keep our mouths shut" from his NYC perch on Sixth Avenue. And that's the advice I hear Steven is giving Brad: just let DreamWorks get all the headlines now. Steven's involvement means Page Six will lay off, given Howard's much ballyhooed relationship with Rupert Murdoch where the two men talk every day. But what about other press? Eventually, Grey will start moving to replace Hill (who I'm told hired Rubenstein as a consultant "like a million years ago" but he purposely kept in the background). Or is that Steven who picks her successor.

I've learned that ex-ICM agent Ed Limato is heading to William Morris with clients Mel Gibson, Denzel Washington, Steve Martin, Richard Gere, Adrian Lyne and possibly others. United Talent also was in the mix. But the surprise was the very aggressive push for the tenpercenter by upstart Paradigm talent agency and its wealthy owner Sam Gores. Of course, given the quick-changing world of agencies Limato could change his mind, but I hear this is the situation as of today. Ed last worked for Morris 19 years ago and left there for ICM under great secrecy, prompting WMA to file a lawsuit to keep him. But that was then and this is now, and Limato will rejoin former ICM co-chairman Jim Wiatt, now Morris CEO. Ed will also reunite with George Freeman, the former ICM agent who was generously given Russell Crowe to handle by Limato. But then Freeman paid Limato back by defecting to Morris with -- surprise, surprise -- superstar Crowe in tow as his calling card. Let's just say at the time there were a lot of four-letter words used to describe Freeman by Limato inside ICM.

This is going to be fun.

I understand from sources that UTA was interested if Limato would halve his price (supposedly $5 mil guaranteed, plus perks). But Gores was ready to fork over a big fat contract to come to merger-frenzied Paradigm. Ed told friends that Gores was "very serious" and negotiated over coffee at Limato's house. The rich offer made Limato think. (He's "a wonderful man" who "built up an extraordinarily successful business in a very short period of time," Limato told pals.) But in the end the freed agent went with the tried and true. "Maybe if I were 20 years younger," Limato told friends about why he truncated the Paradigm talks in favor of William Morris. I think snobbery also factored into Ed's decision. But Gore's aggressiveness in pursuing Limato underscores how determined Paradigm's owner is to grow the agency and give it a higher profile. (After all, Paradigm is located in the former headquarters of Jules Stein / Lew Wasserman's old agency, the legendary MCA.) Plus, Gore has the big bucks to be taken seriously, and his two brothers, Alec and Tom, are both high flying Southern California financiers as well.

What's interesting is how rival tenpercenteries are trying to use the Limato brouhaha to spin the town about ICM. Recently, I've heard both Endeavor and CAA use the phrase that Hollywood now has "only four major agencies," with the implication that ICM is no longer comparable to them or UTA or Morris because of the losses to its motion picture department. That's ridiculous. But ICM and/or its investors are looking to buy an agency with a strong motion picture department. So stay tuned. (All my ICM and Limato postings are here.)

A few issues are left to be determined between Limato and ICM, one of them who pays Limato's whopping $300,000 legal fees. Ed is saying it's ICM, but ICM is claiming that's still to be determined. I hear that, in an arbitration situation like this, it's common for the plaintiff's bill to be paid by the defendants. Ed was repped by showbiz super-attorney Tom Hansen of Hansen Jacobsen and Browne Woods & George litigator Miles Feldman. Hansen was the one responsible for chumming the agency waters to find a new home for Limato among the Hollywood sharks. 

As for the case itself, I've heard the central issue decided by retired L.A. Superior Court judge Diane Wayne (who's husband is former D.A. Ira Reiner) was Limato's contract calling for a one-year employment extension, ending in June, and an additional three years of mandatory consulting that would have tethered him to ICM through 2010. I've already explained the Seven Year Statute of the California Labor Code, and the judge sided with Limato and not with ICM. Hopefully, this story is now over. All that's left is for the Los Angeles Times' Lorenza Muñoz to publish her really, really late piece on ICM.

Here is the email that Ed Limato sent to former colleagues at ICM, including Ron Bernstein, Leigh Brillstein, Pam Brockie, Bob Broder, Ted Chervin, Sam Cohn, Kevin Crotty, Sloan Harris, Patrick Herold, Toni Howard, Paul Hook, Maarten Kooij, Steve Levine, Doug MacLaren, Esther Newberg, Nick Reed, Terry Rhodes, Hal Sadoff, Lori Sale, Michael Tenzer, Amanda Urban, Chris von Goetz, Steve Wohl...

A FOND FAREWELL
To each and every one of you,
I want to thank all of you for some of the best years of my life. I've been an agent for forty years, thirty of which I have spent with ICM. Indeed, I received my start in this business in the mailroom of a forerunner of ICM, and I'm very proud of that fact.
The company has been good to me and I in turn have been good to it. I have no regrets leaving, as I go on to the next portion of my career, except leaving all of you.
I will miss the smiles, the hellos and the warm greetings I received through the halls and in the elevators every day. I will miss getting your phone calls and working together for our clients on a daily basis. I have nothing but the very best to say about the people of ICM.
I will always think of you with fondness and affection and I hope you will always think of me in the same way. I wish each and everyone of you success and happiness.
Very sincerely,
Ed Limato