To restart strike-ridden Hollywood, California governor Gavin Newsom offers to broker deal

California Gov. Gavin Newsom has contacted all sides of strikes that have hobbled Hollywood, his office said Wednesday, offering to help broker a deal to restart an industry that is crucial to keeping state’s ecomy humming amid signs of weakness.

So far, neir studio executives r actors and writers have shown formal interest in bringing Newsom to negotiating table, said Anthony York, Newsom’s senior viser for communications. But York said both Newsom and senior members of his ministration have been in touch with all sides as two strikes stretch deeper into summer blockbuster season.

“It’s clear that sides are still far apart, but he is deeply concerned about impact a prolonged strike can have on regional and state ecomy,” York said. He furr ted “thousands of jobs depend directly or indirectly on Hollywood getting back to work,” including crew, staff and catering.

last time writers went on strike more than a dece ago, 100-day work stopp cost state’s ecomy an estimated $2 billion. ecomic hit could be even bigger this time around w that actors have joined picket lines. strikes come after Newsom signed a state budget that included a more than $31 billion deficit in part because of a slowdown in tech sector, ar one of state’s key industries.

writers have been on strike since May, and actors joined m earlier this month. Both unions have concerns about how y will be paid in an where fewer people are paying to go to movies or watch cable TV in favor of streaming services. And y are worried how rise of artificial intelligence will affect creative process of how movies and TV shows are me and who is paid to make m.

Democratic goverr first offered to help mediate a deal in May, shortly after writers strike began, saying he was sympatic to ir concerns about streaming and artificial intelligence.

w in his final term in office, Newsom has worked hard to boost his national profile as he sets his sights on life after goverr’s office. He is widely considered a future presidential contender, though he has said he has plans to run. Any role for Newsom to help end strikes halting one of country’s most recognizable industries could bolster his status on national st.

Labor actions have lit up California this summer, and it has become common for politicians and ir allies to step in to broker deals. New Los Angeles Mayor Karen Bass, for example, helped negotiate an end to a strike by Los Angeles school staff. Acting Biden ministration Labor Secretary Julie Su, a former California labor leer, helped reach an end to a contract dispute at Sourn California ports.

Asked about Newsom’s involvement, Bass spokesman Zach Seidl said in a statement that “this is a historic inflection point for our city. ... We continue to eng with labor leers, studio hes, elected leers and or impacted parties to arrive at a fair and equitable solution.”

York declined to say who Newsom has spoken with, eir on unions’ side or studios. Representatives for Screen Actors Guild – American Federation of Television and Rio Artists and Alliance of Motion Picture and Television Producers declined to comment.

Hollywood isn’t just a major ecomic driver in California — it’s also a fundraising powerhouse for mostly Democratic candidates, including Newsom. In 2021, when Newsom was facing a recall election that could have removed him from office, Netflix co-founder Reed Hastings donated $3 million to help defeat it. He has received smaller contributions from executives at Disney, Sony and Lionsgate. Prominent directors and producers like Stephen Spielberg and Chuck Lorre have also donated to his campaigns.

Newsom’s relationships with some of Hollywood’s most powerful executives could potentially help him in any negotiations over strikes as he continues to vocate for causes of workers. Newsom also has a connection to Hollywood through his wife, Jennifer Siebel Newsom, who used to be an actor and is w a documentary director.

Also this year, Newsom signed a law to extend tax credits for movie and television productions. big change is that those tax credits will be refundable, meaning if a movie studio has credits that are worth more than what it owes in taxes, state will pay studio difference in cash.