AT&T’s WarnerMedia Sells TMZ To Fox Entertainment for Reportedly Less Than $50 Million
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WarnerMedia has sold TMZ to Fox Entertainment in a deal that was reportedly less than $50 million, according to The Hollywood Reporter.
The sale comes as WarnerMedia’s parent company, AT&T, has been selling off assets to pay off debts and redirect funds to build the 5G network for their cellular service. Anime streaming service CrunchyRoll was sold to Sony and TPG Capital bought DirectTV. WarnerMedia, which owns CNN and HBO, is also in talks to be spun off and merged with Discovery.
In a statement, Fox Corporation Executive Chairman and CEO Lachlan Murdoch praised the “unique and powerful brand” that TMZ founder Harvey Levin had created as having “forever changed the entertainment industry,” adding that they were “excited to welcome them to FOX.”
The name “TMZ” stands for “Thirty-Mile Zone,” a 30-mile geographic area in Los Angeles that is used by union film projects to set per diem rates, driving distances, and other working condition rules for production crews. From its founding in 2005, TMZ capitalized on Hollywood insider connections and impromptu candid interviews with celebrities as they walked through airport terminals or exited trendy restaurants. The company also developed relationships with local emergency services, allowing them to be the first to break news about celebrity deaths like Michael Jackson and Kobe Bryant.
Levin will remain as managing editor, according to the Los Angeles Times, and report to Rob Wade, Fox Entertainment’s president of alternative entertainment and specials, under a multi-year deal.
