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Around 5pm ET on Wednesday, the heads of the major Hollywood studios went to the actors' union with a not so subtle ask: Let us know by 8pm ET whether or not you accept the deal we have put on the table to end the strike.

For more than two hours, the studios did not have an answer. In complete silence, the clock loudly kept ticking closer and closer to the 8pm deadline. Then, suddenly, with only minutes to go until the cutoff, the studio bosses got their answer: SAG-AFTRA, the union that represents the 160,000-some actors, had accepted the deal.

The tentative agreement, which officially ends the strike at midnight, concludes one of the most painful and disruptive chapters in Hollywood's history, one defined by work stoppages that shut down production across the industry for months and raised existential questions over the future of the entertainment business.

Suffice to say, there is a lot of relief in Tinseltown. Relief among the big four studio chiefs, made up of Disney's Bob Iger, Warner Bros. Discovery's David Zaslav, Netflix's Ted Sarandos, and NBCU's Donna Langley. Relief among the actors, who will finally get back to work. And relief among the other unions and workers who rely on the hum of the Hollywood machine to make ends meet.

The deal couldn't have come soon enough. As one person familiar with the matter, who requested anonymity to speak candidly, told me on Wednesday, prolonging a deal "would have been like crossing another rubicon that would have been a huge financial blow to everybody." That is because the studios need to quickly get production up and running to ensure television shows can return in January for a salvaged half-season and summer blockbusters can be cranked out in time for next year. 

"There was just an incredible amount of pressure because of the schedule," the person said. "They were staring over the precipice of a canceled season and the inability to make summer movies." 

The terms of the deal, of course, have not been fully disclosed. That will come later during the official ratification process. But SAG-AFTRA is celebrating, saying that it is "thrilled" with the agreement. 

"In a contract valued at over one billion dollars, we have achieved a deal of extraordinary scope that includes 'above-pattern' minimum compensation increases, unprecedented provisions for consent and compensation that will protect members from the threat of AI, and for the first time establishes a streaming participation bonus," SAG-AFTRA said in a message to members.

The studio chiefs believe they did deliver on everything SAG-AFTRA wanted. "We didn’t just come toward you, we came all the way to you," Sarandos had told the union on Saturday, when the studios presented their offer, Deadline reported. And Zaslav had effectively confirmed as much on Thursday when he addressed investors on Warner Bros. Discovery's earnings call, saying the studios' offer "met virtually all" of the union's goals and represented "the highest wage increase in 40 years."

While Hollywood might be rejoicing in the immediate wake of the deal, there are still plenty of challenges that will need to be overcome. To get television shows back in January and keep film schedules to where they are, studios will need to quickly restart production.

And there is much work ahead to make that happen — for everyone. As the person I spoke with on Wednesday said, Hollywood is now "extremely focused on getting everybody back to work and moving forward and making sure the industry is OK."

———  BELOW THE FOLD  ———

Disney's Big Day: Disney's stock surged more than 4% in after-hours trading after a strong earnings report and a pledge by Bob Iger to slash another $2 billion in costs, which is in addition to the $5.5 billion in cuts that had already been announced. Disney also managed to reduce Disney+ losses after raising prices, slimming it down to $420 million compared to $1.4 billion last year. "Our results this quarter reflect the significant progress we’ve made over the past year," Iger said. "While we still have work to do, these efforts have allowed us to move beyond this period of fixing and begin building our business again." More highlights:

► On the combined Hulu/Disney+ app: Iger said that Disney will put it in beta at first "so that we can prepare parents" for a catalogue that contains both adult and children's content. After best practices emerge from the beta test on this front, Disney will officially release the app. "We found that where we bundle, we lower churn," Iger said. 

► On linear television: "We have been considering various strategic options for each of our networks, not necessarily all together, but each of them," Iger told CNBC's Julia Boorstin. Iger added, however, that a channel like ABC "provides a lot of strategic support for ESPN" and is "very valuable for streaming." Iger said that, additionally, the Charter deal "really changed the outlook about the business." He said that Disney is "looking in an open minded way" at what to do with each asset in its linear portfolio, but stressed "that shouldn’t in any way suggest that anything is imminent."

► On Nelson Peltz: "I must say I don’t I don’t have specifics about what Nelson is really after or what he will ask for," Iger told Boorstin. "I will say that as has been the case in the past, the management and the board is always willing to listen to what shareholders have to say. You know, we’re in lockstep with the board in terms of our opportunities and our challenges and our strategic direction. We all feel very optimistic about the future of the company. I don’t have anything more to add really about that."

WBD in the Weeds: Suffice to say, it was not a great day for Warner Bros. Discovery. The company's stock sunk a staggering 19% after a not-so-great Q3 earnings report in which it posted a decline in advertising revenue. Chief financial officer Gunnar Wiedenfels didn't ease any minds either when he told investors there is the "possibility of continued sluggish advertising trends" and that "the timing of an ad recovery is currently difficult for any of us [to predict] with any conviction." Chief executive David Zaslav also warned that the company, like all others in media, is going through "generational disruption." Some other highlights from the earnings call:

► On its content slate: Zaslav said the labor disputes that have plagued Hollywood all year "compelled us to delay some releases," such as the highly anticipated new season of "True Detective," because the company wants to properly promote the projects with actors such as Jodie Foster. The result, Zaslav said, is one of the company's "lightest original content schedules in years" in Q3.

► On CNN: Zaslav praised CNN's coverage of the Israel-Hamas war, specifically underscoring the vast on-the-ground resources the network has deployed to the region. He also said that the recently launched CNN Max is drawing users who on average are 20 years younger than those who watch the news channel on traditional cable.

First in Reliable | Harassing Herridge: Journalist Catherine Herridge, who is on the brink of being held in contempt of court for refusing to give up her source(s) for a series of stories that she broke years ago at Fox News, said in her September deposition that she has been subject to harassment that she believes is related to the case, according to court filings made public this week. Herridge said her car was broken into in May 2022 and that her reporters' notes were taken, though money in the vehicle was not. Two days later, Herridge said, "It was very early in the morning, about 6:00 a.m., and I was leaving the house to go running in the park, which is my usual habit, and as I came out of the house and entered into Rock Creek Park, I looked over and I saw a man crouched in the bushes with a camera aimed at our home." Herridge said that after the photographer "realized that I had seen him, he fled on foot." Herridge said in her decades working as a journalist, nothing like that had ever happened to her. She described the episodes as "deeply distressing" to herself and family.

► Investigative journalist Jana Winter, who almost faced jail time over her refusal to reveal sources for a story, told Reliable Sources: "I feel for Catherine and her sources and their families’, who I’m sure are incredibly stressed and anxious and afraid of what will happen next. ... The threat of imminent jail time for doing your job, for informing the public about things we should know about is an all-consuming weight that takes over every second of every day, everything you do or think, every part of your existence while the court proceedings play out ever so slowly. It’s the worst."

Normalized by NBC News: Respected news organizations typically do not partner with right-wing companies known for trafficking in extremism. But NBC News chose another path. On Wednesday evening, the news organization hosted the third GOP debate alongside Salem Radio and Rumble, helping to elevate and normalize both of the far-right outfits. Notably, amid the controversy, NBC moderators Lester Holt and Kristen Welker did not participate in the traditional round of pre-debate interviews. And NBC News has declined to comment on whether it was really comfortable linking arms with Salem and Rumble.

Filter Fallout: Mark Zuckerberg loves those beauty filters. That's according to internal company communications, released Wednesday as part of a lawsuit against Meta, that indicate the billionaire chief executive personally vetoed ridding Instagram of them, in addition to other initiatives aimed at improving the mental health of teenage users. The documents show Zuckerberg overruled Instagram boss Adam Mosseri and others on disabling the beauty filters, saying there was "demand" for the feature and "no data" suggesting it was harmful. CNN's Brian Fung has more.

🔎 Zooming in: "The newly unsealed communications in the lawsuit... allegedly show how Zuckerberg ignored or shut down top executives... who had asked Zuckerberg to do more to protect the more than 33 million teens who use Instagram in the U.S.," Fung wrote. In a statement, Meta spokesperson Andy Stone said the company offers tools to support teenagers and that it also bans filters "that directly promote cosmetic surgery" and "changes in skin color or extreme weight loss."

A Mess to Marvel At: Marvel has a real mess on its hands. Its new offering, "The Marvels," is being savaged by critics. With 102 reviews in, the film is currently scoring an appalling 58% on Rotten Tomatoes, the third worst Rotten Tomatoes score in the history of Marvel. And the other movie Marvel released this year, "Ant Man and the Wasp: Quantumania," is also in the bottom three worst-rated Marvel movies of all time, posting a horrendous 46% Rotten Tomatoes score. In other words, two of three worst reviewed Marvel films of all time have been released this year. It all points to a serious creative problem for the Disney studio, which once cranked out well-reviewed hits.

Thank you for reading! This newsletter was edited by Jon Passantino and produced with the assistance of Liam Reilly. Have feedback? Send us an email. You can follow us on Instagram, Threads, and LinkedIn. We will see you back in your inbox tomorrow.