Tag Archives: Investment & Company Information

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

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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

OpenAI’s house of cards seems primed to collapse

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OpenAI is in a far less commanding position than it was following the public release of ChatGPT a few short years ago. 

Back in 2022, the sudden popularity of ChatGPT sent Google into a panic. The company was so worried about the possibility of the upstart chatbot disrupting its Search business, executives sounded a "code red" alert inside of the company and called Sergey Brin and Larry Page out of retirement to help it formulate a response to OpenAI. It then rushed out Bard, announcing its first commercial chatbot on February 6, 2023. Google's stock tanked days later when the AI incorrectly answered a question about NASA's James Webb Space Telescope during a public demo. 

But it wasn't just Google that wanted a piece of OpenAI, while the search giant sought to compete with it, others — including Microsoft and Apple — made deals with the company to bring its technology to their products and services, all the promise that AI would eventually revolutionize every facet of the economy. 

Since then, OpenAI has seen its lead against Google and much of the AI industry evaporate, culminating in a series of successive blows throughout 2025. On January 20, the same day Altman was busy rubbing shoulders with other tech oligarchs at Donald Trump’s inauguration, China’s DeepSeek quietly released its R1 chain-of-thought model. A week later, the startup's chatbot surpassed ChatGPT as the most-downloaded free app on the US App Store. The overnight success of DeepSeek eliminated $1 trillion worth of stock market value, and almost certainly left OpenAI blindsided.

In response, the company showed a newfound urgency. In one week, for instance, OpenAI released both o3-mini and Deep Research. It even went so far as to announce the latter on a Sunday evening. But for all its new urgency, OpenAI's biggest, most important release of the year was a miss. 

It's safe to say GPT-5 hasn't lived up to anyone's expectations, including OpenAI's own. The company touted the system as smarter, faster and better than all of its previous models, but after users got their hands on it, they complained of a chatbot that made surprisingly dumb mistakes and didn't have much of a personality. For many, GPT-5 felt like a downgrade compared to the older, simpler GPT-4o. That's a position no AI company wants to be in, let alone one that has taken on as much investment as OpenAI.    

Anthropic was quick to take advantage of the weakness, signing a deal with Microsoft to bring its Claude models to Copilot 365. Previously, Microsoft depended exclusively on OpenAI for partner models in Copilot. Before the company announced the integration, reporting from The Information said Microsoft made the decision based on the strength of Anthropic's Sonnet 4.0 model, judging it "perform[ed] better in subtle but important ways" relative to OpenAI's offerings.   

However, what will likely go down as the defining moment occurred a few short weeks after OpenAI announced the conclusion of its restructuring. On November 18, Google released Gemini 3 Pro, and immediately the new model leap-frogged the competition, including GPT-5. As of the writing of this article, Google's new model is at the top of LMArena, the site where humans compare outputs from different AI systems and vote on the best one. GPT-5, by contrast, is currently ranked sixth overall, behind models from Anthropic and Elon Musk's xAI.  

According to a December 2 report from The Wall Street Journal, Sam Altman sent a companywide memo following the release of Gemini 3 Pro. Echoing the words Google used to describe the situation it found itself against OpenAI in 2023, he called for a "code red" effort to improve ChatGPT. Altman reportedly told employees there would be temporary reassignments and that the company would delay some products, all in an effort to catch up to Google and Anthropic.    

The few numbers these companies are willing to share don't paint a promising picture for OpenAI. Each month, about 800 million people use ChatGPT. On paper, that's impressive, but Google is catching up there too. In October, the company said the Gemini app had 650 million users, up from 450 million just a few months earlier in July, thanks to the popularity of its Nano Banana Pro image generator. 

More importantly, OpenAI has an inherent disadvantage against Google. For the search giant, AI may touch everything the company does now, but Gemini is just one product in an extensive portfolio that includes many other popular services. Google can fund its AI advancements with money it makes elsewhere. OpenAI cannot say the same. The company is constantly raising money to stay afloat, and according to a financial roadmap obtained by The Journal, it will need its revenue to grow to about $200 billion annually to become profitable by 2030. In November, Altman said on X the company was on track to hit above $20 billion in annualized revenue this year. 

In an effort to grow revenue, Altman and company have adopted an incredibly risky strategy. In recent months, OpenAI has signed more than $1.4 trillion worth of infrastructure deals in a bid to outscale the competition that is already beating it. Many of those agreements can only be described as circular, and I think the fears about a financial bubble are real. In the first half of 2025, investment in data centers accounted for nearly all of US GDP growth. Even if there's not a repeat of the 2008 housing market crisis or the dot-com crash, the AI boom is at the very least poised to make everyday electronics (and utilities) more expensive for regular people in the short term.

Since late October, demand for server-grade computer components, including memory and storage, has sent the price of consumer PC parts skyrocketing as manufacturers devote more of their production capacity and wafers to high-margin customers like OpenAI and Google. Since late October, the cost of most RAM kits has doubled and tripled. In November, the price of some SSDs went up by as much as 60 percent. Next year, the cost of LPDDR5X memory, which is used in both smartphones and NVIDIA servers, is expected to climb as well.  

"Be it carmakers, smartphones or consumer electronics, everyone that uses memory is facing pressure from price hikes and supply constraints in the coming year," Zhao Haijun, the co-CEO of memory manufacturer SMIC told analysts, per Bloomberg.

Gita Gopinath, former chief economist for the International Monetary Fund, recently estimated that if the AI bubble were to burst, it would wipe out $20 trillion in wealth held by American households. The Great Recession, considered the worst financial meltdown since the Great Depression, reduced US household net worth by $11.5 trillion, and it took years before for American families to rebuild their wealth to pre-recession levels.   

The modern AI bubble may have been started by ChatGPT, but given the crowded field of chatbots and LLMs, it won't necessarily pop should OpenAI go bust. With novelty and technical prowess no longer on its side though, it's now on Altman to prove in short order why his company still deserves such unprecedented levels of investment. 

This article originally appeared on Engadget at https://www.engadget.com/ai/openais-house-of-cards-seems-primed-to-collapse-170000900.html?src=rss

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

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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

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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

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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

Mastodon’s founder is no longer its CEO

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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

Apple is reportedly getting ready to replace Tim Cook as early as next year

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According to the Financial Times, Tim Cook may be ready to leave his position as soon as next year, and Apple's board and senior executives have ramped up their preparations to secure his replacement.

Cook, who has been at the helm of Apple for more than 14 years, succeeded Steve Jobs and led the company to a market cap of more than $4 trillion. Cook's tenure since 2011 has overseen the introduction of hardware, including Apple Watch, AirPods and Vision Pro, but also services like Apple Arcade and Apple TV+. According to the Financial Times's sources, Apple's senior vice president of engineering, John Ternus, will most likely take on the CEO role, but this decision hasn't been finalized yet. Ternus has been with Apple since 2001 as part of its Product Design team and eventually stepped into a vice president role within the Hardware Engineering division, where he played a heavy role in the company's transition to Apple silicon.

According to the Financial Times, Apple isn't planning to announce the new CEO before its January earnings report. However, the report also noted that this announcement would come earlier in the year to allow the leadership team to transition smoothly in time for all of Apple's annual events. Earlier this year, Apple also announced Sabih Khan as the new chief operating officer, taking over for Jeff Williams.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/apple-is-reportedly-getting-ready-to-replace-tim-cook-as-early-as-next-year-171407974.html?src=rss

Something funky is going on at Ubisoft

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It's been clear for some time that all is not well at Ubisoft. Between games not meeting the company's sales expectations, studio closures, downsizing elsewhere and sexual misconduct issues, it's been a rocky past several years for the company. 

But now it seems something else may be going on at the publisher. Just before it was set to hold a call with investors on Thursday, Ubisoft said it was delaying its half-year earnings report and halting trading of its shares. It has asked Euronext — the European stock market on which its shares are listed — to halt trading from November 14 until it publishes its earnings results "in the coming days."

This could mean any number of things. Other companies have delayed earnings reports due to things like accounting issues. But halting trading of the company's shares could portend major news, such as a sale or Ubisoft becoming a private entity again. Engadget has contacted Ubisoft for comment. 

It was reported late last year that the founders of Ubisoft were looking to take the company private with the help of Tencent. That hasn't transpired as yet, but Ubisoft (with the help of a Tencent investment) did this year form a new subsidiary called Vantage Studios. That is now overseeing Assassin's Creed, Far Cry and Rainbow Six — three of Ubisoft's most important franchises.


This article originally appeared on Engadget at https://www.engadget.com/gaming/something-funky-is-going-on-at-ubisoft-184058990.html?src=rss

Sony has sold 84.2 million PlayStation 5s since launch

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It's been just over a year since Sony launched the updated PS5 Slim and PS5 Pro consoles, so how's that going given Sony's pessimistic outlook in May? Pretty well, judging by the company's latest earnings report. Sony sold more PlayStation 5s last quarter than it did a year ago (3.9 million compared to 3.8 million), boosting total PS5 sales to 84.2 million since launch. Sony also expects more revenue from its gaming (G&NS) division than it previously forecast. 

Back in May, Sony predicted a ¥100 billion ($700 million) hit to revenue in fiscal year 2025 due to tariffs, given that most of its sales occur in the US. Another key blow was the delay of Rockstar's Grand Theft Auto VI launch that was first pushed back to May 2026 and was recently delayed again until November 19, 2026. 

However, Sony now expects to sell more hardware than it thought and make ¥4.47 trillion in gaming revenue ($29 billion) for its full year ending March 31, 2026 — up ¥150 billion ($973 million) from its last forecast. That figure, would be slightly below its full year 2024 sales of ¥4.670 trillion ($30.3 billion), but it's still impressive for a nearly five year old console that has seen multiple price hikes. .

In terms of game sales, the main highlight was Ghost of Yotei, which sold 3.3 million units as of November 2, 2025, just a month after it launched. The company sold 6.3 million first-party games across PS5 and PS4 (up one million compared to last year) and 80.3 million games total. 

As for PlayStation Network, monthly active users hit 119 million, up 3 million from last year at this time. Sony doesn't break out PS Plus Premium subscribers, but that service just launched a new feature that lets you stream games you own over the cloud on the PlayStation Portal. 

This article originally appeared on Engadget at https://www.engadget.com/gaming/playstation/sony-has-sold-842-million-playstation-5s-since-launch-123004469.html?src=rss

Paramount+ is getting a price hike and ending free trials

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Paramount+ is making some changes that will make its streaming service get more to watch. During Paramount's earnings report today, the company announced that it will increase the subscription prices for Paramount+ in the US during the first quarter of 2026. Price hikes were also announced today for viewers in Canada and Australia. The new pricing was not shared, but a dollar or two more per month has become the standard change. Considering most streaming services jack their prices every year or two, the news was probably inevitable; the last increase for Paramount+ was back in June 2024. But today's announcement also revealed that Paramount+ will no longer offer free trials, which is a common practice for most digital entertainment subscriptions. 

The changes appear to be part of a reassessment of the Paramount+ finances. The company's approach to increase long-term profitability "includes shifting away from certain hard bundles and low-margin subscriptions, reducing investment in select international markets without a clear path to sufficient scale, retiring free trials, and reviewing discount practices."

These new moves follow Skydance's acquisition of Paramount over the summer, an $8 billion purchase which received regulatory approval after some pretty scuzzy interactions with FCC Chairman Brendan Carr. 

This article originally appeared on Engadget at https://www.engadget.com/entertainment/streaming/paramount-is-getting-a-price-hike-and-ending-free-trials-231146302.html?src=rss