Podcast Summary: The Town with Matthew Belloni

Episode: Will Big Tech and AI Save or Kill Hollywood?
Date: October 30, 2025
Host: Matt Belloni
Guest: Andrew Ross Sorkin (CNBC co-host, DealBook founder, author of "1929: Inside the Greatest Crash in Wall Street History")
Theme: Examining the intersection of Hollywood’s struggles, the tech/A.I. surge, major studio consolidation, and what’s next for the entertainment industry as Big Tech and vast money reshape the landscape.

Overview

This episode explores the "bubble" that’s dominating both the U.S. economy (via AI and Big Tech) and Hollywood, and how these forces are converging through massive acquisitions, studio consolidation, and existential questions for creative industries. Matt Belloni, with Andrew Ross Sorkin, discusses eerie historical parallels (like the 1929 crash), the impact of AI and tech on content creation, Hollywood power plays (Paramount, Warner Bros., Comcast), and speculates on who will survive and thrive amid dizzying change.

Key Discussion Points

1. Are We in a Bubble? – Tech, AI, and the Macro-Economic View

• Comparison to 1929 and 1999:

  • Sorkin’s new book on the 1929 crash prompts Belloni to ask if current AI/Tech mania is comparable.
  • [06:23] Sorkin: "There's no question that we're in some kind of a bubble… What I don't know is whether we're in 1929 or… probably more like 1999, which is to say that there's just so much spending in one particular space…like the Internet bubble."
  • Current AI spending ($100s of billions) is so extreme it’s propping up the economy; the crash will come either when investments prove unsustainable or, paradoxically, when AI’s cost-cutting succeeds and kills jobs.

• Hollywood’s Bubble within the Bubble:

  • [07:11] Belloni: "No one knows. It's like a roulette board. Everyone's just putting their trillion dollar bets down and a couple numbers are going to come up and the rest are going to get washed away."
  • AI’s promise spurs wild investment, but could lead to "transition costs" and possibly devastation in creative sectors.

2. Consolidation: Paramount, Warner Bros., and the “AOL Time Warner” Question

• Ellison’s Ambitions:

  • David Ellison's Skydance/Paramount deals could be transformative if he can roll up enough assets to rival Netflix or Disney.
  • [10:06] Sorkin: "What David Ellison's doing with Paramount is extraordinary and ultimately could work. It probably only works…if, in fact, he's able to consolidate more."
  • Owning one studio isn't enough—he needs more scale, possibly Warner Bros. Discovery.

• The Bidding War and Boardroom Dilemmas:

  • Ellison’s rejected $23.50/share bid for Warner Bros. Discovery, with speculation he could go to $30/share to beat Comcast/Amazon interest.
  • Key question: Should Warner Bros. take a bird-in-hand full buyout or split studio/cable assets for potentially more risky upside?
  • [14:26] Belloni: "Ellison will nudge higher and higher until it becomes…inevitable…The money now versus the potential for a little more, but a lot of uncertainty later."

• Strategic Chess and Competitors:

  • If Comcast/Amazon lose out, options narrow—important for streaming scale and libraries. Running up the price to hurt rivals is a motivator (Disney/Fox case).
  • [15:56] Belloni: "[Comcast CEO] Brian Roberts…seems to be obsessed with Disney. And then if they don't get it, at least they've run up the price for a competitor."

3. Big Tech’s Monopolistic Vision – The Oracle/Ellison Gambit

• Tech + Content = New Powerhouse?

  • Belloni sees Ellison as the natural product of Big Tech's domination, like railroad trusts of the Gilded Age.
  • Oracle could combine with Paramount, Warner, maybe even TikTok for a new media superpower.
  • [17:10] Belloni: "The magic fairy dust of the Oracle Tech is going to boost all of these content businesses…a content company fueled by the power of Big Tech."

• Hollywood Messaging vs. Reality:

  • To regulators and creatives, Ellison promises hands-off ownership (the studios "operate separately"), but real goal is integrated, tech-driven dominance.
  • Suggests links to Trump administration are relevant for regulatory speed.

• Short-Term Sugar Rush vs. Long-Term Crash:

  • [18:39] Sorkin: "Netflix shows up and starts spending money…for a couple of years…it was great…Then the downside...a sugar rush." Now Ellison brings new money, but how long does that last before another reckoning?

4. Global Money and the “Morality” of Investment

• Middle Eastern Sovereign Wealth – Coming for Hollywood?

  • Belloni/Sorkin speculate on rumors of a Middle Eastern fund bidding for Warner Bros. Could artists stomach it? Opinions are split between ethical qualms and desperation for cash.
  • [22:19] Belloni: “It’s tough to be in business as artists with a regime that dismembers journalists. But…where else is the money coming from? Hollywood has a long history of taking money from people all over the world…This is the moment where the Saudis are investing…”

• Regulatory Calculations:

  • Weighing U.S. administration (Trump especially) and dealmaking—donor ties, speed of review, and creative mergers (e.g., Comcast, NBC affiliates) designed to avoid FCC/DOJ blocks.

5. The Future of Cable and Media Spin-offs

• Versant and the Startup Spirit:

  • Comcast’s cable and TV spinoff (Versant) is giving legacy assets a new chance, with Sorkin expressing genuine optimism.
  • [25:41] Sorkin: “I actually am super excited about it. I think there's a sense of…almost like a new startup feeling…here's a business that's throwing off $2 billion plus a year. That money historically was never reinvested in the business itself…Now…maybe make all sorts of interesting acquisitions."

• The Linear Melting Ice Cube:

  • No interest in accumulating more cable assets; debt and declining revenues make it unattractive.
  • There’s a higher “floor” for cable thanks to rebundling/YouTube TV, but growth will come by investing those billions in emerging tech, digital plays, and data.
  • Examples: Golf Channel’s tee time platform, Rotten Tomatoes, Fandango (dark horse).

6. Content Strategy & What Succeeds Now

• Windowing and Streaming Profits:

  • Hit films don’t always perform on streaming; “box office bomb” notoriety can paradoxically boost home/streaming numbers.
    • [32:52] Sorkin: "It's a good example of a movie that doesn't necessarily work in the box office…that these things can actually come back around and profit you in other ways."
  • Shorter windows between theatrical and PVOD can make a big financial difference; management consultancies model the best timing.

• Spin-offs and Billions Universe:

  • Sorkin hints at multiple projects in development for his book 1929; future of the Billions TV universe is uncertain post-Ellison regime at Paramount.

Notable Quotes & Moments

• On Big Tech’s existential risk:

  • [08:40] Sorkin: "Productivity is a euphemism for cutting costs. Well, what are the costs? The costs are us, Matt. The costs are us."

• On the inevitability of correction:

  • [07:21] Sorkin: "It would be hard to believe that it won't pop at some point, just given the almost indiscriminate religious like spending."

• On the Ellisons’ motivations:

  • [17:10] Belloni: "I think they see it as a strategic play…have all of these companies under one roof. And the magic fairy dust of the Oracle Tech is going to boost all of these content businesses..."

• On the role of Middle Eastern funds:

  • [22:19] Belloni: "There has been a rumor that some Middle Eastern entity is going to emerge as a suitor for Warner Discovery… At least someone cares. At least someone's putting that money into Hollywood and not just launching an AI studio to put us all out of business…"

• On studio windowing and streaming:

  • [34:20] Sorkin: "You basically ride the marketing wave while it's still relevant, as opposed to letting it, quote, unquote, die in the narrative before going on streaming."

Important Segments and Timestamps

• Intro & Guest Introduction – 00:31-04:27
• The Bubble Comparison: 1929, 1999, Today – 06:23-08:17
• AI and Hollywood’s Future – 07:21-09:24
• Paramount, Warner Bros., and Mega-Mergers – 10:06-15:56
• Big Tech’s Strategic Play & Oracle/Ellison – 16:44-19:47
• Middle Eastern Investment/Moral Dilemmas – 22:19-23:39
• Cable’s Future and Versant discussion – 25:41-28:29
• Content Performance on Streaming – 31:05-34:34

Tone & Style

Belloni and Sorkin are frank, analytical, and sometimes wryly cynical. They balance financial logic with Hollywood street-smarts, often punctuating serious predictions with humor or sharp metaphors (e.g., “roulette board bets,” “sugar rush,” “melting ice cube,” “pitchforks in the streets”).

Final Thoughts

This episode pulls back the curtain on both the promise and peril as tech titans and multinational capital swarm Hollywood’s battered giants. With M&A at fever pitch and A.I. upending jobs and business models, Sorkin and Belloni dissect what’s hype, what’s history, and the tough choices that will shape studios, creators, and audiences in years to come. For anyone tracking the future of film and TV, this conversation is a must-listen masterclass in how economic, technological, and political forces are converging in the world’s glitziest business.