Tag Archives: Finance

Meta buys startup known for its AI task automation agents

Posted on by

Meta has acquired an AI startup called Manus — known for its custom research and website-building agents — in a deal valued at more than $2 billion, according toThe Wall Street Journal. It's reportedly one of the largest acquisitions yet involving a startup nurtured in China's AI ecosystem. 

Manus arrived in March 2025, shortly after another Chinese AI startup, DeepSeek appeared on the scene. The company (called Butterfly Effect at the time) originally described it as "the first general AI agent" to perform complex tasks autonomously, rather than just generating ideas. It draws from several third-party models, particularly Anthropic's Claude 3.5 Sonnet and versions of Alibaba's Qwen. 

Manus is designed to automate certain tasks, like market research, coding, sales data analysis and website cloning and creation. (However, one skeptic called it "a product devilishly optimized for influencers, which is why it exploded so much.") The company claims that Manu is "already serving the daily needs of millions of users and businesses" and has an annualized average revenue of more than $100 million only eight months after launch. 

Manus laid off most of its Beijing employees this summer before moving its headquarters to Singapore in an effort to expand globally.The company was reportedly seeking a funding round that would have valued it at $2 billion when it was approached by Meta. "Joining Meta allows us to build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made," said Manus CEO Xiao Hong in a company news release.

This article originally appeared on Engadget at https://www.engadget.com/ai/meta-buys-startup-known-for-its-ai-task-automation-agents-140045275.html?src=rss

Paramount has an updated Warner Bros. Discovery bid

Posted on by

Paramount Skydance isn't giving up on obtaining Warner Bros. Discovery just yet. The company has amended its $108 billion offer to include Larry Ellison's "irrevocable personal guarantee" equaling $40.4 billion. Ellison is the founder or Oracle and a backer of Skydance, created by his son David Ellison, Paramount Skydance's CEO. 

On December 17, WBD formally recommended shareholders reject Paramount's offer. WBD had already accepted an $82.7 billion offer from Netflix, set to close some time next year following regulatory approval. "[The board] has unanimously determined that the tender offer launched by Paramount Skydance on December 8, 2025 is not in the best interests of WBD and its shareholders and does not meet the criteria of a 'Superior Proposal' under the terms of WBD's merger agreement with Netflix announced on December 5, 2025," WBD stated. 

The Paramount deal included backing by sovereign wealth funds in places like Saudi Arabia and Qatar. But the Ellisons previously said that, if the other funders dropped out, they would "backstop the full amount of the bid." That wasn't enough of a guarantee for WBD. 

Now, Paramount has returned with the irrevocable personal guarantee and an agreement that the senior Ellison won't "revoke" or "adversely transfer" the Ellison family trust's assets while the transaction is pending. WBD had stated that a personal guarantee was the only fix to Paramount's inadequate offer. 

Paramount might have taken this step, but not with a smile on its face: "None of these concerns, nor the demand for a personal guarantee, were raised by WBD or its advisors to Paramount in the 12-week period leading up to WBD agreeing to the inferior transaction with Netflix, Inc.," the company stated about its updated offer. 

"Our $30 per share, fully financed all-cash offer was on December 4th, and continues to be, the superior option to maximize value for WBD shareholders. Because of our commitment to investment and growth, our acquisition will be superior for all WBD stakeholders, as a catalyst for greater content production, greater theatrical output, and more consumer choice," David Ellison stated. "We expect the board of directors of WBD to take the necessary steps to secure this value-enhancing transaction and preserve and strengthen an iconic Hollywood treasure for the future."

Paramount's updated offer also includes publishing the trust's assets, more flexible transaction terms and an increase from $5 billion to $5.8 billion of its "regulatory reverse termination fee" — in line with Netflix's. 

Paramount's offer will expire on January 21, 2026. 

This article originally appeared on Engadget at https://www.engadget.com/entertainment/paramount-has-an-updated-warner-bros-discovery-bid-144348321.html?src=rss

We have more details on the TikTok deal, including some ownership statistics

Posted on by

TikTok has signed a deal to spin off its American business, according to reporting from Associated Press and others. This should keep the popular social media app available in the US for good, capping off years of drama.

We now have some new data as to the specifics of the deal. Nearly 50 percent of assets will be split between three companies. Oracle, Silver Lake and MGX will each control around 15 percent of the newly-formed entity. It's worth noting that MGX isn't an American company at all, but rather Abu Dhabi’s state-owned investment firm.

The rest will remain in the hands of affiliates of TikTok's parent company, ByteDance. That company will also take a direct ownership stake of around 20 percent. US platform operations will be managed by a seven-member board of directors. The majority of this board will be Americans.

US data will be stored under a system operated by Oracle. That company is run by Larry Ellison, a long-time ally of President Trump who once brainstormed ideas on how to overturn the 2020 presidential election. Oracle has been trying to get its mitts on TikTok since at least 2020. As for Silver Lake, it has deep ties to Trump allies like Michael Dell and his son-in-law Jared Kushner.

The deal is expected to close on January 22, according to an internal memo shared by TikTok CEO Shou Chew. "With these agreements in place, our focus must stay where it’s always been — firmly on delivering for our users, creators, businesses and the global TikTok community," he wrote to employees.

If a deal is truly finalized by next month, it will come just over a year after Trump's first executive order to delay a law that required a sale of the app to prevent a ban. He has signed several other extensions since.

This article originally appeared on Engadget at https://www.engadget.com/social-media/we-have-more-details-on-the-tiktok-deal-including-some-ownership-statistics-163003507.html?src=rss

Sony is buying Peanuts

Posted on by

Sony is paying approximately $460 milliion to purchase Peanuts [PDF] and its characters, including Snoopy and Charlie Brown, created by Charles M. Schulz. That’s a 41 percent stake Sony is buying from Canadian firm WildBrain. Since Sony bought 39 percent of the franchise back in 2018, this will give the company an 80 percent stake. The deal is still subject to regulatory approvals, but Peanuts will become Sony’s consolidated subsidiary once it’s closed. Schulz’s family still owns the remaining 20 percent stake in the franchise.

Schulz launched the Peanuts universe in comic strips 75 years ago, back in 1950. The franchise has grown massively since then, spawning animated series, cartoon musicals and movies that made Snoopy a household name. The company said that it has focused on expanding the Peanuts IP since it bought 39 percent of the brand years ago. “With this additional ownership stake, we are thrilled to be able to further elevate the value of the ʻPEANUTSʼ brand by drawing on the Sony Groupʼs extensive global network and collective expertise,” Sony Music Entertainment Japan CEO Shunsuke Muramatsu added.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/sony-is-buying-peanuts-022341467.html?src=rss

Trump Media is merging with a Google-backed fusion energy company in a deal worth $6 billion

Posted on by

Trump media, the company behind the president's personal social media platform Truth Social, is inexplicably merging with a Google-backed fusion energy company called TAE Technologies. The deal is worth $6 billion, according to reporting by Financial Times.

Why is an entity known for publishing frenzied hot takes by the president at 3AM combining with a fusion energy company? Who the heck really knows, but a statement says the two organizations will join together to build the "world's first utility-scale fusion power plant." This would be huge, if true, as there are currently no operational commercial nuclear fusion power plants.

We know what TAE would bring to the table in that scenario. The energy company has been around since the 1990s and has attracted interest from Google, Chevron and others. Trump Media would be a great partner when building a reactor powered by insults, but doesn't seem to offer much of anything else.

The merger statement does mention that Trump Media would provide TAE with "access to significant capital." The company lost $55 million last quarter, as there's only so much money in a social media platform primarily used by just one person.

However, the president himself is likely the world's most renowned raiser of funds when it comes to personal pet projects. He knows how to get a roomful of billionaires to open up their wallets, provide copious compliments and even hand-deliver gold statues. The terms of the deal state that Trump Media will provide TAE with $300 million in capital as a bonus of sorts, though we don't know where that money is coming from as it represents over ten percent of the company's entire valuation.

This is an all-stock deal and stocks aren't exactly immune from the manipulative whims of billionaires. To that end, shares in Trump Media have risen dramatically since this deal was announced. President Trump shifted his stake in the company to a revocable trust that he is the sole beneficiary of and is controlled by Donald Trump Jr. 

There's also the potential notion of using access to shore up federal support for grants, low-interest loans and permit approvals. That kind of thing seems particularly thorny and, to put it mildly, legally gray.

Creating a power plant for large-scale nuclear fusion would be an incredible undertaking and it's something humanity has yet to figure out. TAE CEO Michl Binderbauer told CNN the newly-formed company will have it done in "five-ish years." Most experts put that time frame in the "30-ish years" category.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/trump-media-is-merging-with-a-google-backed-fusion-energy-company-in-a-deal-worth-6-billion-180910779.html?src=rss

Warner Bros. Discovery rejects Paramount’s hostile bid

Posted on by

Warner Bros. Discovery's board has formally rejected the $108 billion takeover bid from Paramount Skydance, the company announced. WBD said it remains committed to its $82.7 billion deal with Netflix, which would close some time next year, pending regulatory approval. 

"[The board] has unanimously determined that the tender offer launched by Paramount Skydance on December 8, 2025 is not in the best interests of WBD and its shareholders and does not meet the criteria of a "Superior Proposal" under the terms of WBD's merger agreement with Netflix announced on December 5, 2025," the studio said in the press release. 

Paramount's offer was funded in part by sovereign wealth funds from Saudi Arabia, Qatar and Abu Dhabi, so it could have triggered a national security review by the US government. However, Paramount said that even if those entities dropped out, the company's owners (the Ellisons) would "backstop the full amount of the bid."

However, the board said that Paramount "has consistently misled WBD shareholders that its proposed transaction has a 'full backstop' from the Ellison family. It does not, and never has," adding that "the terms of the Netflix merger are superior." WBD explained that Paramount is relying on an "opaque revocable trust" for said backstop which is "no replacement for a secured commitment by a controlling shareholder." WBD's board also noted that Paramount expects to achieve $9 billion in cost synergies from the merger, and that "would make Hollywood weaker, not stronger." 

In a statement, Netflix co-CEO Ted Sarandos said that "the Warner Bros. Discovery board reinforced that Netflix's merger agreement is superior and that our acquisition is in the best interest of stockholders. This was a competitive process that delivered the best outcome for consumers, creators, stockholders and the broader entertainment industry."

Paramount has yet to comment, but the company has previously said that its $30 per share offer is a better deal, due to the all-cash nature (compared to 84 percent cash for Netflix) and fact that it would have a clearer path to regulatory approval due to the Ellison's supposedly tight relationship with President Trump. 

This article originally appeared on Engadget at https://www.engadget.com/entertainment/warner-bros-discovery-rejects-paramounts-hostile-bid-131055882.html?src=rss

Amazon in talks to invest $10 billion in OpenAI and supply its Trainium chips

Posted on by

Amazon is in discussions with OpenAI to invest $10 billion in the company while supplying more of its AI chips and cloud computing services, according to The Financial Times. The deal would push OpenAI's valuation over $500 billion but is likely to raise more questions about the company's circular investment agreements involving chips and data centers. 

The two companies are also in talks about the possibility of OpenAI helping Amazon with its online marketplace, similar to deals it has made with Etsy, Shopify and Instacart. However, any agreement still wouldn't allow Amazon to market OpenAI's most advanced models on its developer cloud platform, as Microsoft holds the exclusive rights to those until the 2030s. 

OpenAI recently restructured its agreement with Microsoft to allow it to use data center capacity from other suppliers. Around the same time, it made a string of deals with NVIDIA, Oracle, AMD and others to build out data center capacity and acquire or rent AI chips. 

The new deal would require OpenAI to use Amazon's Trainium AI chips and rent more data center capacity from Amazon Web Services (AWS). That's on top of the $38 billion that OpenAI has already committed to renting servers from AWS over the next seven years. 

These deals have sounded alarms among investors considering their circular nature. In many of those, including this latest Amazon deal, OpenAI is taking investment money and then sending that cash back to the same company for infrastructure or chips. And the amounts are staggering, with just two companies, Softbank and Oracle, spending a combined $400 billion on new data centers for OpenAI's compute needs. And so far, OpenAI has lost more money than it makes. 

This article originally appeared on Engadget at https://www.engadget.com/ai/amazon-in-talks-to-invest-10-billion-in-openai-and-supply-its-trainium-chips-103653151.html?src=rss

PayPal applies to become a bank under Trump’s looser financial rules

Posted on by

PayPal is the latest company looking to become a bank in the US. On Monday, the company announced it had submitted applications for PayPal Bank to the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions (UDFI). PayPal is already a bank in Europe, based in Luxembourg. 

According to PayPal, it has provided "over $30 billion in loans and working capital" for more than 420,000 business accounts globally. PayPal puts its focus on small businesses in pitching the need for a US bank. "Securing capital remains a significant hurdle for small businesses striving to grow and scale," Alex Chriss, president and CEO of PayPal, said in a release. "Establishing PayPal Bank will strengthen our business and improve our efficiency, enabling us to better support small business growth and economic opportunities across the US." 

PayPal also plans to provide "interest-bearing saving accounts" as a bank. If approved, it would be chartered in Utah. 

Applications to become a bank have popped up left and right this year, with approval odds increasing under the Trump administration. On Friday, the Office of the Comptroller of the Currency (OCC) announced that five cryptocurrency companies, including BitGo, Circle and Ripple, received conditional approval to become federally charted trust banks.  

"New entrants into the federal banking sector are good for consumers, the banking industry and the economy," the OCC's comptroller Jonathan V. Gould stated in the announcement. "They provide access to new products, services and sources of credit to consumers, and ensure a dynamic, competitive and diverse banking system."

Other companies such as Nissan and Sony have also submitted applications to form a bank. 

This article originally appeared on Engadget at https://www.engadget.com/big-tech/paypal-applies-to-become-a-bank-under-trumps-looser-financial-rules-143025772.html?src=rss

iRobot has filed for bankruptcy and may be taken over by its primary supplier

Posted on by

iRobot, which brought robotic vacuum cleaners to the masses with its iconic Roomba models, has filed for Chapter 11 bankruptcy. The Massachusetts-based company plans to sell all assets to its primary supplier, a Chinese company known as Picea Robotics. If approved by a bankruptcy court, the move would allow iRobot to "continue operating in the ordinary course, pursue its product development roadmap, and maintain its global footprint," iRobot wrote in a press release.

The company expects the deal to close in February 2026, but says it will continue to operate "with no anticipated disruption to its app functionality, customer programs, global partners, supply chain relationships or ongoing product support." That means your Roomba should continue to clean normally and you'll be able to get consumables and replacement parts. 

However, investors of common stock "will experience a total loss and not receive recovery on their investment" if the deal is approved, iRobot stated. The company didn't discuss how the move might affect its employees in the US or elsewhere. 

Bankruptcy seemed a likely outcome for iRobot after Amazon dropped its $1.7 billion acquisition of the company last year following a veto threat by European regulators. The company's fortunes continued to decline and it issued a statement to investors in March 2025 that it had "substantial doubt about [its] ability to continue."

It's a sad turn of events for the company that invented the robotic vacuum niche and launched its first product, the Roomba, back in 2002. It dominated that space for more than a decade, but its market size has steadily shrunk more recently, particularly since Covid, due to competition from rivals like Roborock and Dreame. 

Though iRobot retooled its product lineup earlier this year with new models like the Roomba 105 Vac Robot series and Roomba Plus 505 Combo Robot + AutoWash Dock, but they failed to move the sales needle enough. The company was reportedly hit hard by Trump's 46 percent tariff in Vietnam where it manufactures products for the US market. 

If the sale is approved, iRobot says it will return in force. "Today's announcement marks a pivotal milestone in securing iRobot's long-term future," said CEO Gary Cohen. "The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners."

This article originally appeared on Engadget at https://www.engadget.com/home/irobot-has-filed-for-bankruptcy-and-may-be-taken-over-by-its-primary-supplier-091602257.html?src=rss

Slack’s CEO is joining OpenAI to find the money to pay for all those data centers

Posted on by

OpenAI has announced that Denise Dresser, the current CEO of Slack, will be the company's new Chief Revenue Officer. Dresser will oversee the company's revenue strategy "across enterprise and customer success," according to OpenAI's announcement, and will presumably play a key role in leading the company towards profitability now that it's reorganized as a public benefit corporation.

"We're on a path to put AI tools into the hands of millions of workers, across every industry," Fidji Simo, OpenAI's CEO of Products said in the announcement. "Denise has led that kind of shift before, and her experience will help us make AI useful, reliable, and accessible for businesses everywhere."

Simo joined OpenAI in May of this year, after serving as CEO of Instacart, and before that, the head of Facebook at Meta. Hiring Simo and Dresser could be a good indication of how OpenAI plans to approach ChatGPT going forward. Which is to say, the company is taking a very Silicon Valley approach to growing its chatbot business and focusing on scale and monetizing as many AI interactions as possible. It's not a mistake that Simo helped establish Meta's ads business and OpenAI is reportedly planning to introduce ads into chats with its AI models.

Even with the possibility of ad revenue, Dresser will still have to overcome what OpenAI continues to spend to offer its various AI products. OpenAI pays for multiple partnerships for data center access and has commitments to both buy and build server components for those data centers. Add in the cost of just processing a ChatGPT query itself, and growing the company’s revenue seems like a tall order.

This article originally appeared on Engadget at https://www.engadget.com/ai/slacks-ceo-is-joining-openai-to-find-the-money-to-pay-for-all-those-data-centers-220411962.html?src=rss