Tag Archives: Finance

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

Paramount makes a $108 billion hostile takeover bid for Warner Bros. Discovery

Posted on by

Paramount has been none too pleased about Netflix striking an $82.7 billion deal to buy much of Warner Bros. Discovery (WBD). Now, Paramount is making a hostile takeover bid for WBD. It's making its pitch directly to WBD shareholders with an all-cash offer of $30 per share that expires on January 8.

Late last week, the WBD board unanimously accepted Netflix's offer of $27.75 per share. That breaks down to $23.25 per share in cash and another $4.50 per share in Netflix stock. Netflix's overall bid is valued at $82.7 billion, while Paramount's totals $108.4 billion.

There's a key difference when it comes to the Paramount offer, as it’s for all of WBD. The latter is scheduled to split into two companies next year. Netflix only wants the Streaming and Studios side of WBD's business, which includes HBO Max and the Warner Bros. film, TV and game studios.

Paramount is after the whole shebang, including WBD's cable channels (Global Networks). "WBD's Board of Directors recommendation of the Netflix transaction over Paramount's offer is based on an illusory prospective valuation of Global Networks that is unsupported by the business fundamentals and encumbered by high levels of financial leverage assigned to the entity," Paramount said in a press release on Monday.

As of the end of September, WBD was carrying $34.5 billion of gross debt. It planned to saddle the Global Networks company (aka Discovery Global) with most of that. The Paramount offer includes $40.7 billion in financing from the family of Paramount CEO David Ellison — his father is Oracle co-founder Larry Ellison — and RedBird Capital, but it would be taking on more debt to secure a deal for WBD. The bid includes "$54 billion of debt commitments from Bank of America, Citi and Apollo." (Apollo owns a majority stake in Yahoo, Engadget's parent company).

According to an SEC filing [PDF], other entities are backing the Paramount bid, including Jared Kushner’s investment firm Affinity Partners and the sovereign wealth funds of Saudi Arabia (the Public Investment Fund), Qatar and Abu Dhabi. Tencent was a financing partner in a previous Paramount offer, but it’s not involved with the hostile takeover attempt.

In a letter sent to WBD CEO David Zazlav before the company accepted Netflix's offer, Paramount questioned the "fairness and adequacy" of the sale process. It asked whether WBD was acting in the best interest of shareholders after the management team allegedly appeared to favor the Netflix offer.

"Despite Paramount submitting six proposals over the course of 12 weeks, WBD never engaged meaningfully with these proposals which we believe deliver the best outcome for WBD shareholders," Paramount said. "Paramount has now taken its offer directly to WBD shareholders and its Board of Directors to ensure they have the opportunity to pursue this clearly superior alternative."

Paramount — which Skydance bought for $8 billion this year — also claims that its offer is likely to face less regulatory scrutiny than the Netflix offer, which wouldn't close until sometime after WBD splits in two later in 2026. According to CNBC, Paramount executives believe that the company's smaller size and cozy relationship with the Trump administration will help streamline the regulatory process. Over the weekend, President Donald Trump said that Netflix's bid for WBD has "got to go through a process, and we’ll see what happens. But it is a big market share. It could be a problem."

In a statement to Variety, WBD said it will consider Paramount’s latest bid and provide a recommendation to its stockholders within 10 business days — in other words, by December 19. The company said it “is not modifying its recommendation with respect to the agreement with Netflix” for the time being and it is asking shareholders “not to take any action at this time with respect to Paramount Skydance’s proposal.”

Meanwhile, Netflix co-CEO Ted Sarandos said at an event on Monday that Paramount’s new offer was “entirely expected. We have a deal done, and we are incredibly happy with the deal. We think it’s great for our shareholders. It’s great for consumers. We think it’s a great way to create and protect jobs in the entertainment industry. We’re super confident we’re going to get it across the line and finish.”

Update December 8, 2025, 11:14AM ET: Added details about the involvement of sovereign wealth funds and Affinity Partners.

Update December 8, 2025, 2:38PM ET: Added the responses from WBD and Netflix.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/paramount-makes-a-108-billion-hostile-takeover-bid-for-warner-bros-discovery-152248473.html?src=rss

Ubisoft delayed its latest earnings report due to an accounting issue

Posted on by

The possible reasons behind Ubisoft delaying the earnings report it was expected to release last week were the subject of much discussion, especially given the company’s well-documented issues in recent times. But we now know that the delay was forced by an accounting issue relating to its soon-to-be finalized transaction with Tencent.

As detailed in Ubisoft’s now-published first-half 2025-26 earnings figures, the company was required to restate its FY2024-25 accounts, concerning revenue for this period attributed to sales from a partnership. "This position now applied by the Group going forward has also resulted in a partnership signed in Q2 FY2025-26 not being recognized in IFRS15 revenues," the company said. "The above results in the Company not complying with its leverage covenant ratio under certain existing financing agreements at September 30, 2025. However, this is being addressed by the aforementioned actions relating to the concerned debt instruments."

With the report now published, Ubisoft has asked Euronext to resume trading its shares. And while the accounting snag led to the week-long delay, the French company said that its deal with Tencent is set to close in "the coming days," with the imminent €1.16 billion ($1.36 billion) investment expected to help the company pay off outstanding debt. Once finalized, the partnership will also "enable the acceleration" of Vantage Studios, the new Ubisoft subsidiary in which Tencent will own a 25 percent stake. The new studio will be responsible for Ubisoft’s three biggest IPs: Assassin’s Creed, Far Cry and Rainbow Six.

Ubisoft reported net bookings of €491 million ($564 million) this quarter, which it said was a 39 percent year-on-year increase. The company said that Assassin’s Creed Shadows, which is getting a Switch 2 port next month, had overperformed this quarter, likely helped by arrival of its New Game+ mode in the summer.

This article originally appeared on Engadget at https://www.engadget.com/gaming/ubisoft-delayed-its-latest-earnings-report-due-to-an-accounting-issue-152017119.html?src=rss

Intuit is integrating its tax and accounting products with ChatGPT

Posted on by

The financial software company Intuit has signed a nine-figure deal with OpenAI which will allow customers to use its various services within ChatGPT. Intuit’s apps include Intuit Turbo Tax, Credit Karma, QuickBooks and MailChimp, all of which will now be accessible when using OpenAI’s chatbot for personalized financial advice and management.

The partnership is driven by what Intuit calls the "hundreds of millions of consumers and businesses" that ask ChatGPT finance-related questions every week. Consumers will be able to use Intuit’s apps within ChatGPT to research credit cards and mortgages, with advice tailored to their spending. They can also permit the chatbot to access their financial data to estimate their tax refund amounts and schedule appointments with a "live, AI-powered tax expert."

On the business side, companies can use ChatGPT to get advice on how to increase their revenue based on their current performance. They can also create targeted campaigns to send out to prospective customers and use AI to generate invoice reminders.

Intuit has been investing heavily in AI for the last 10 years, introducing its own AI assistant back in 2023 and building it into its products. Its $100 million contract with OpenAI will also see it widen its use of the latter’s models and their agentic capabilities across its platform. Generative AI allows Intuit customers to complete their financial tasks and ask questions about complex subjects using natural language prompts.

OpenAI is seemingly committed to growing its reputation as a credible source of finance-related guidance and information. Last month it acquired a personal investing app called ROI, which uses a built-in chatbot to advise users on potential investments.

This article originally appeared on Engadget at https://www.engadget.com/ai/intuit-is-integrating-its-tax-and-accounting-products-with-chatgpt-153809280.html?src=rss

Mastodon’s founder is no longer its CEO

Posted on by

Mastodon's founder Eugen Rochko has officially stepped down as CEO. The move comes ten months after the company announced it would transition into a nonprofit entity and that Rochko would leave his post. Rochko will take on an advisory role with the company. 

In a blog post about this decision, Rochko pointed to a desire for guardrails to avoid becoming another egotistical founder "sabotaging thriving communities." He added, "But it would be uncouth for me to pretend that there isn’t some self-interest involved. Being in charge of a social media project is, turns out, quite the stressful endeavour, and I don’t have the right personality for it." 

In his place, Felix Hlatky has taken on the role of executive director. Hlatky has worked at Mastodon since March 2020 and plans to focus on expanding the team, long-term financial stability and making it easier to run servers safely and efficiently.

Currently, Mastodon is operating as a nonprofit in the US, but aims to set up a permanent home base as a nonprofit in Belgium, known as an AISBL. Mastodon previously held nonprofit status in Germany but lost that it last year. 

Mastodon has pursued outside funding since its announced transition to a nonprofit. It shared that Stock Exchange co-founder Jeff Atwood and his family gave the organization €2.2 million ($2.5 million). Part of that influx of cash has gone toward hiring new employees in its engineering, marketing, operations and product teams. Rochko also received a one-time €1 million ($1.2 million) compensation after ten years of "taking less than a fair market salary." 

This article originally appeared on Engadget at https://www.engadget.com/social-media/mastodons-founder-is-no-longer-its-ceo-143011438.html?src=rss