Tag Archives: Investment & Company Information

Tesla is killing off its Model S and X cars to make robots

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Tesla will “basically stop the production” of its Model S and X electric vehicles next quarter, CEO Elon Musk has announced at the automaker’s earnings call for the 2025 fiscal year. “It’s time to bring the Model S and X program to a end with an honorable discharge, because we’re really moving into a future that’s based on autonomy,” Musk said. You can still buy the vehicles as long as there are units to be sold, and Tesla promises to support them for as long as people have them. Once they’re gone, though, they’re gone for good, because Tesla is converting their production space in the company’s Fremont factory into a space for the manufacturing of Optimus humanoid robots.

Model S is Tesla’s second vehicle and has been in production since 2012, while the Model X SUV has been in production since 2015. Their shine has faded over the years, however, and the newer Model 3 and Y now make up the bulk of the company’s sales. For the entirety of 2025, for instance, Tesla delivered 1,585,279 Model 3 and Y vehicles but only sold 418,227 Model S and X units. The company also had to stop selling Model S and X in China in mid-2025, because they were being imported from the US and were subject to China’s tariffs that were put in place in response to US President Donald Trump’s tariffs on imported goods.

In the call, Musk said that Tesla’s long-term goal is to be able to manufacture 1 million Optimus robots in the current Model S and X production space. At the World Economic Forum in Davos, Switzerland a few days ago, the CEO announced that Tesla will start selling Optimus to the public by the end of next year. Musk has big plans for Optimus and once said that it’s bound to become the “biggest product of all time,” bigger than cellphones, “bigger than anything.” But the humanoid robot has been failing to live up to the hype during demonstrations, and Musk is known for his overly optimistic timelines.

The company’s earnings report has also revealed that Tesla invested $2 billion in Musk’s other company, xAI. Tesla’s shareholders notably sued Musk in 2024 for starting xAI, which they argued is a direct competition to the automaker. The CEO has been claiming for years, after all, that Tesla is an AI company and not just an EV-maker. Still, Tesla’s shareholders approved Musk’s $1 trillion pay package in late 2025 on the condition that the company reaches a market value of $8.5 trillion.

This article originally appeared on Engadget at https://www.engadget.com/transportation/evs/tesla-is-killing-off-its-model-s-and-x-cars-to-make-robots-010621101.html?src=rss

Yahoo is adding generative AI to its search engine

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Yahoo has announced a new AI-powered "answer engine", dubbed Yahoo Scout. The new tool is available now in beta and is powered by Anthropic's Claude.

The company says Scout "synthesizes" info from the web, as well as Yahoo's own data and content when constructing responses to user's natural-language search queries. Yahoo says the interface will include interactive digital media, structured lists and tables and visible source links aimed at making answers easier to verify. (Disclosure: Yahoo is the parent company of Engadget.)

Alongside Scout, Yahoo is announcing an "intelligence platform" across its varied products. This will include features like AI summaries in Yahoo Mail, “key takeaways” in Yahoo News and game breakdowns in Yahoo Sports. Scout will also integrate into Yahoo Shopping to offer insights and shoppable links, and Yahoo Finance, where it can populate company financials, analyst ratings and explain stock moves as they occur. Yahoo says the answer engine behind Scout will become more personalized and focus on "deeper experiences" as time goes on.

Google offered a glimpse of generative AI in search back in 2023, and the company's AI Mode for search was made widely available in the US last year. The company has been similarly at work integrating its AI model across its product portfolio, including Gmail and shopping.

This article originally appeared on Engadget at https://www.engadget.com/ai/yahoo-is-adding-generative-ai-to-its-search-engine-172706249.html?src=rss

US Congress members call for ‘thorough review’ of EA’s $55 billion sale

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Before Electronic Arts goes private in a groundbreaking sale, some US lawmakers are pleading for some federal oversight. Democratic members of the US Congress, as part of the Congressional Labor Caucus, penned a letter asking the Federal Trade Commission to "thoroughly review" the $55 billion acquisition of EA.

EA confirmed the sale to the Public Investment Fund, or the sovereign wealth fund of Saudi Arabia, Silver Lake and Affinity Partners in September, but the deal is expected to close in the first quarter of 2027. Before the official change of ownership, the 46 House Democrats who signed the letter to the FTC are calling for more scrutiny into the impacts of the deal. 

The letter noted some of the most consequential effects, including the worsening of an unstable industry, the potential for more layoffs and increased market dominance for EA. "We respectfully urge the Commission to conduct a thorough investigation into the labor market consequences of this proposed acquisition, including EA’s existing wage-setting power, the likelihood of post-transaction layoffs, the degree of labor-market concentration in relevant geographic and occupational markets, and the role of cross-ownership in shaping labor outcomes," the letter read.

The letter already earned support from the Communications Workers of America union, who also supported a petition from the United Video Games union. As spotted by Eurogamer, the petition calls on regulators and elected officials to "scrutinize this deal and ensure that any path forward protects jobs and preserves creative freedom."

This article originally appeared on Engadget at https://www.engadget.com/gaming/us-congress-members-call-for-thorough-review-of-eas-55-billion-sale-175851429.html?src=rss

Vimeo lays off most of its staff just months after being bought by private equity firm

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Vimeo just got hit by a brutal round of layoffs, according to a report by Business Insider. Staffers are posting on various social media sites that the layoffs have impacted most of the company, including the entire video team. Vimeo is a video-hosting platform, so that sounds bad.

“Yesterday, following Vimeo’s recent acquisition by a private equity firm, I learned that I, along with a large portion of the company, was impacted by layoffs,” wrote the company’s former vice president of Global Brand & Creative, Dave Brown. He is referring to a firm called Bending Spoons that bought Vimeo for $1.38 billion in the latter half of 2025.

We don't know why parent company Bending Spoons conducted such a massive round of layoffs, but the equity firm is known for purchasing tech companies and aggressively cutting costs via layoffs. It did the same thing to Evernote back in 2023 and WeTransfer in 2024. Engadget has reached out to Vimeo to inquire about the exact number of employees that were laid off and will update this post when we hear back.

"I can confirm that a layoff was announced at Vimeo on January 20, 2026. To respect the privacy of those departing, we cannot provide additional details at this time,” a Bending Spoons spokesperson told Gizmodo in an emailed statement. "Going forward, Bending Spoons remains committed to growing Vimeo to meet the needs of its diverse user base."

It's good to know the company "remains committed to growing Vimeo" after firing just about everyone that works there. One former employee said on X that it "sucks to see something I built killed by private equity in a technology company skin suit."

Vimeo has been around a long time. The platform was founded a full year before YouTube and has positioned itself as being a premium alternative for hosting creative and business-adjacent videos. We have no idea what it'll look like with a minimal staff and no video team.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/vimeo-lays-off-most-of-its-staff-just-months-after-being-bought-by-private-equity-firm-184556023.html?src=rss

TikTok finalizes deal for its US entity

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After years of uncertainty over TikTok's future in the United States, a deal for the app's US business has been finalized. The new US entity is called TikTok USDS Joint Venture. ByteDance has retained a 19.9 percent percent stake in the new business, with the rest controlled by a group of non-Chinese investors, including Oracle, Silver Lake and MGX, an Emirati-state owned investment firm, all of which have a 15 percent stake. Dell CEO Michael Dell and other investors have smaller stakes in the new company. 

The terms of the deal were first leaked last month, after TikTok CEO Shou Chew reportedly told employees in a memo that TikTok and ByteDance had agreed to a group of investors. This ends a lengthy saga and months of slow progress as the agreement was being worked out, ensuring that the app will remain available in the US after years of being on the verge of a ban in the country.

President Donald Trump, who had tried to ban the app during his first term in office, praised the deal in a post on Truth Social. "It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice," he wrote."I only hope that long into the future I will be remembered by those who use and love TikTok."

According to TikTok’s announcement, the joint venture will protect American users’ data with Oracle's secure US cloud environment. It will also retrain TikTok’s algorithm on US users’ data and will be in charge of content moderation in the US. The entity promises interoperability, as well, promising that users will still get international content and, if they’re a creator, viewers. “The safeguards provided by the Joint Venture will also cover CapCut, and Lemon8 and a portfolio of other apps and websites in the US,” TikTok said.

The new entity will be overseen by a seven-member board of directors, most of whom are Americans. It includes, Shou Chew, the Chief Executive Officer of TikTok, Silver Lake co-CEO Egon Durban, Oracle Executive Vice President Kenneth Glueck and MGX Chief Strategy and Safety Officer David Scott. Adam Presser, who had previously been head of operations and trust and safety at TikTok, is the CEO of TikTok USDS Joint Venture.

Exactly what the new joint venture means for US users of TikTok is unclear. Shortly after the deal was announced, TikTok introduced new terms of service for US users. As the BBC notes, the new terms include provisions relating to use of the app by kids under 13 (they are limited to the "Under 13 Experience") and that the "TikTok USDS Joint Venture does not endorse any content" in the app. The company hasn’t announced specific changes to the app’s algorithm or other core features.

Update, January 23, 2026, 10:58AM PT: This post was updated to add a statement from President Trump, and with additional information about TikTok’s new terms of service.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/tiktok-finalizes-deal-for-its-us-entity-010543484.html?src=rss

David Ellison extends deadline for Warner Bros. Discovery takeover offer

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Paramount Skydance CEO David Ellison is apparently still hopeful that investors will approve his $108.4 billion hostile takeover of Warner Bros. Discovery. Paramount Skydance announced Thursday that it's extending its all-cash offer to acquire the storied studio, and giving investors until February 20, 2026 to accept. The company's previous offer expired on January 21, but with a lawsuit in the works and a revised Netflix deal to compete with, Paramount Skydance wants to stay in the conversation.

Netflix and Warner Bros. Discovery originally announced their $82.7 billion acquisition agreement in December 2025. Netflix's deal is for a significant portion, but notably not all, of Warner Bros. Discovery as it exists today. If approved, the streaming service would acquire Warner Bros. film studios, New Line Cinema, HBO, HBO Max, the company's theme parks, game studios and select linear channels like TNT, but not the collection of reality TV and news programming that Warner Bros. Discovery calls “Global Networks.”

Paramount Skydance made its competing offer of $108.4 billion for all of Warner Bros. Discovery a few days later in December, with the recommendation that shareholders reject the Netflix deal. To add pressure, Paramount Skydance also sued Warner Bros. Discovery in January alleging that the company had not provided adequate information about why it favored Netflix over Paramount. Beyond offering more money, Paramount contends its deal is more likely to be approved by regulators because owning Warner Bros. doesn't "entrench Netflix's market dominance." Warner Bros. Discovery claims that funding for Paramount's deal "remains inadequate" and that the company is uncertain Paramount Skydance will actually be able to complete the deal.

David Ellison was previously able to merge Skydance with Paramount using the financial backing of his billionaire father Larry Ellison, and the Ellison family's friendly relationship with the Trump administration. Promising to make sure that CBS News represents "a diversity of viewpoints” via a newly appointed ombudsman, and that the merged Paramount Skydance won't create any diversity, equity and inclusion programs was enough to get the FCC to approve the merger. Ellison might have thought acquiring Warner Bros. Discovery would be equally easy, but at least so far that hasn't worked out as planned.

This article originally appeared on Engadget at https://www.engadget.com/entertainment/david-ellison-extends-deadline-for-warner-bros-discovery-takeover-offer-204752313.html?src=rss

Mark Zuckerberg announces new ‘Meta Compute’ initiative for its data center and AI projects

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On the heels of Mark Zuckerberg announcing that Meta's former board member, Dina Powell McCormick, would be formally joining the company as president and vice chairman, the CEO has shared new details about her purview at the company. The executive will play a key role overseeing Meta's sprawling infrastructure investments as part of a newly announced initiative called Meta Compute.

"Meta is planning to build tens of gigawatts this decade, and hundreds of gigawatts or more over time," Zuckerberg said in an update. "How we engineer, invest, and partner to build this infrastructure will become a strategic advantage."

Zuckerberg said that Meta's head of global engineering Santosh Janardhan will lead the "top-level initiative" and that recent hire and former Safe Superintelligence CEO Daniel Gross will "lead a new group responsible for long-term capacity strategy, supplier partnerships, industry analysis, planning, and business modeling." McCormick is expected to "work on partnering with governments and sovereigns to build, deploy, invest in, and finance Meta's infrastructure."

Meta has been investing heavily in infrastructure to fuel its AI "superintelligence" ambitions. The company also recently announced three agreements to buy massive amounts of nuclear power to help power its data centers. Zuckerberg has previously said he expects Meta to spend $600 billion on AI infrastructure and jobs by 2028.

This article originally appeared on Engadget at https://www.engadget.com/ai/mark-zuckerberg-announces-new-meta-compute-initiative-for-its-data-center-and-ai-projects-192100086.html?src=rss

Paramount won’t quit, files suit against Warner Bros. Discovery over rejected bid

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Paramount Skydance just does not want to take no for an answer. After having multiple bids to acquire Warner Bros. Discovery (WBD) rejected, including a recent hostile bid that the WBD board recommended that shareholders reject, Paramount is turning to the courts and mounting a proxy fight.

In a letter to shareholders on Monday, Paramount CEO David Ellison said the company has filed suit in Delaware Chancery Court seeking more disclosure about WBD’s pending Netflix deal and the process that led to its acceptance. Paramount argues WBD hasn’t provided “basic information” shareholders need to evaluate competing offers, including how WBD valued the planned cable-networks spinout Discovery Global (or Global Networks, depending on the filing). The Netflix acquisition would leave Discovery Global to become its own publicly traded company, while the Paramount offer included these assets.

Paramount is also escalating the corporate pressure campaign, with Ellison saying it intends to nominate a slate of directors for election at WBD’s 2026 annual meeting. The end goal would be installing a board that would “engage” on Paramount’s offer under the terms of WBD’s merger agreement with Netflix.

If WBD were to call a special meeting to approve the Netflix transaction before the annual meeting, Paramount says it will solicit proxy votes against the deal. It also plans to push a bylaw change requiring shareholders to approve any separation of Discovery Global. This change seems like Paramount stoking the flames (whether real or imagined) surrounding shareholders having their WBD shares bought out without the value of Discovery Global built-in under the Netflix merger.

Paramount remains convinced that its offer is "superior" to that of Netflix, while WBD maintains Paramount's bid offers "insufficient value" and that Paramount has failed to submit a true best proposal "despite clear direction from WBD on both the deficiencies and potential solutions." The lawsuit now aims to force WBD to spell out exactly how it arrived at recommending the Netflix deal over Paramount's bid.

WBD expressed concerns over whether a potential Paramount deal would even reach closing, citing the substantial debt the smaller studio would have to take on to pull off a leveraged buyout.

This article originally appeared on Engadget at https://www.engadget.com/entertainment/paramount-wont-quit-files-suit-against-warner-bros-discovery-over-rejected-bid-175317166.html?src=rss

Meta appoints ex-Trump and Bush official as its new president and vice chairman

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Meta has appointed Dina Powell McCormick, a banking executive and former Republican White House official, as its new president and vice-chairman. The company said McCormick will help guide its overall strategy and execution as a part of the management team.

“Dina’s experience at the highest levels of global finance, combined with her deep relationships around the world, makes her uniquely suited to help Meta manage this next phase of growth as the company’s president and vice chairman,” said Meta Founder and CEO Mark Zuckerberg.

McCormick was a partner at Goldman Sachs and ran its Global Sovereign investment banking business. She was most recently vice chair, president and head of global client services at merchant bank BDT & MSD Partners. McCormick was also deputy national security advisor to President Donald Trump during his first term and held several roles during the George W. Bush administration, including assistant secretary of state for Secretary of State Condoleezza Rice. She is married to Sen. Dave McCormick (R-PA).

Meta’s new president joined the company’s board last April, but she resigned in December. Just a few weeks later, McCormick has taken on a higher-profile role at Meta. 

McCormick is the second former Trump official that Meta has appointed to a prominent role this month. Last week, the company hired Curtis Joseph Mahoney, who was most recently a corporate vice president and general counsel at Microsoft, as its chief legal officer. Mahoney was a deputy US trade representative during the first Trump administration.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/meta-appoints-ex-trump-and-bush-official-as-its-new-president-and-vice-chairman-151048263.html?src=rss

GameStop reportedly shuts down more than 400 US stores

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Your neighborhood GameStop might be on the chopping block, along with more than 400 other retail locations across the US. As first reported by Polygon, the retailer is pursuing a severe cost-saving measure by closing up several hundred physical locations. According to a blog that keeps track of GameStop closures, there are 410 locations that are confirmed to be closing or are already closed, along with another 11 that are reportedly also on their way, as of January 10. 

As Polygon indicated, these closings aren't much of a surprise considering GameStop's SEC filing for December 2025 indicated that it would "anticipate closing a significant number of additional stores in fiscal 2025," which ends on January 31, 2026. The same filing detailed that the company's board would pay out the GameStop CEO, Ryan Cohen, up to $35 billion in stock options, given that he increases the retailer's market cap to $100 billion.

While the blog covers only closures in the US, the SEC filing also noted that GameStop is planning to reduce its presence in several other European countries and Canada. Even though GameStop saw a historic spike in market value in 2021, it has struggled with the brand's direction, as seen with failed attempts at offering a crypto locker and an NFT marketplace.

This article originally appeared on Engadget at https://www.engadget.com/gaming/gamestop-reportedly-shuts-down-more-than-400-us-stores-210632743.html?src=rss