Tag Archives: Mergers, Acquisitions & Takeovers

Teamsters urge DOJ to block Paramount’s Warner Bros. merger

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The International Brotherhood of Teamsters, the union that covers warehouse workers, drivers and a diverse collection of other laborers, has come out against Paramount Skydance's merger with Warner Bros. Discovery. In a press release, the Teamsters announced that it has submitted a report to the US Department of Justice's Antitrust Division outlining its concerns about the impact of the deal, and is urging the DOJ to intervene in the merger.

"This merger threatens the livelihoods of the very workers who built these studios into industry giants," Teamsters General President Sean M. O’Brien said in a statement. "We've seen what happens when corporations consolidate power: jobs disappear, production leaves American communities and workers pay the price. The DOJ has a responsibility to stop deals that eliminate competition and harm working families. Unless Paramount and Warner Bros. can guarantee enforceable protections for domestic production and labor standards, this merger can’t be allowed to move forward."

The Teamsters are primarily concerned with how merging the two companies will consolidate power, and eliminate jobs in the process. "Previous mergers have a well-documented track record of harming workers — Disney’s 2019 acquisition of 20th Century Fox resulted in eliminated production units, significant job losses and canceled projects," the union says. Motion Picture Teamsters, the division of the union concentrated in Hollywood that transports the equipment, props and crew members that make productions possible, stand to be most impacted. 

The high likelihood the merger impacts competition in the market is why the Teamsters expect the DOJ to step in, or in the case Paramount and Warner Bros. aren't able to provide "enforceable commitments to increasing and maintaining domestic production, strong labor standards and guarantees against layoffs and erosion of union jobs," block the deal entirely.

Engadget has asked the Teamsters union what it plans to do if the Department of Justice doesn't intervene. We'll update this article if we hear back.

If it's allowed to eat Warner Bros., Paramount Skydance has committed to producing 30 theatrical films annually, evenly split across the two studios’ slates. The larger issue is that the company's offer to acquire the studio is predicated on the idea it will quickly pass the muster of government regulators. Paramount Skydance CEO David Ellison is the son of Oracle co-founder Larry Ellison, who's known to have close ties with President Donald Trump, and has already benefited from favorable treatment from the administration. There's a real possibility that Paramount's new merger could similarly sail through, regardless of the Teamsters' concerns.

This article originally appeared on Engadget at https://www.engadget.com/entertainment/teamsters-urge-doj-to-block-paramounts-warner-bros-merger-215115721.html?src=rss

Paramount+ and HBO Max could be merging into a single streaming service

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Paramount Skydance plans to combine Paramount+ and HBO Max into a single streaming service following the completion of its merger with Warner Bros. Discovery. CEO David Ellison confirmed the plan on an investor call Monday, saying the combined platform would serve over 200 million subscribers and position the company to compete with the biggest players in the streaming space.

“We think the combined offering, and given the amount of content and what we can do from the tech side, really will put us in a position to be able to compete with the most scaled players in DTC,” Ellison said. It’s not yet clear whether the app’s two libraries will be fully integrated, or whether one will exist as a standalone service within the other. Ellison signaled that the HBO brand will “operate with independence” during the call.

Also unclear is what the newly combined app would cost subscribers. The last year has seen nearly across-the-board increases in the cost of streaming services, including HBO Max.

The planned merger would unite Paramount’s CBS, MTV, Comedy Central and BET with Warner’s CNN, HBO, TNT and Food Network, along with franchises including Game of Thrones, Mission: Impossible, the DC Universe and SpongeBob SquarePants under one roof. The combined entity is expected to carry roughly $79 billion in net debt, according to Reuters, and could be considered the largest leveraged buyout in history. The deal is expected to close in the back half of 2026, pending regulatory approval.

This article originally appeared on Engadget at https://www.engadget.com/entertainment/streaming/paramount-and-hbo-max-could-be-merging-into-a-single-streaming-service-163439653.html?src=rss

Antitrust head overseeing Netflix-Warner merger resigns

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The head of the antitrust division is out at the US Department of Justice. Gail Slater, a former JD Vance adviser and Fox Corp VP, reportedly clashed with Attorney General Pam Bondi. Their longstanding feud is said to have centered around Slater's skepticism of corporate mergers.

"It is with great sadness and abiding hope that I leave my role as [Assistant Attorney General] for Antitrust today," Slater posted on X. "It was indeed the honor of a lifetime to serve in this role."

Although Slater technically resigned, The Guardian reports that she was forced out. The fallout was said to be over her differences with Bondi (who just yesterday yelled, insulted and deflected her way through a hearing over the DOJ's stonewalling of the Epstein files). In recent weeks, Bondi reportedly reiterated to the White House that Slater's views on the antitrust division's direction made the pair's relationship irreconcilable.

WASHINGTON, DC - FEBRUARY 11: U.S. Attorney General Pam Bondi testifies before the House Judiciary Committee in the Rayburn House Office Building on February 11, 2026 in Washington, DC. Bondi is expected to face questions on her department’s handling of the files related to the convicted sex offender Jeffrey Epstein, President Trump’s investigations into political foes and the handing of the two fatal ICE shootings of U.S. citizens. (Photo by Win McNamee/Getty Images)
Attorney General Pam Bondi (Photo by Win McNamee/Getty Images)
Win McNamee via Getty Images

The tensions reportedly began simmering last summer, when Slater sought to block the merger between Hewlett-Packard Enterprise and Juniper Networks. She opposed the deal out of concerns that it would create a duopoly in cloud computing and wireless networking. In addition, Slater reportedly told Bondi that US intelligence hadn't raised any concerns about blocking the merger. However, CIA Director John Ratcliffe later claimed that blocking it would pose national security risks because it could lead to the loss of business to China. The Trump administration's merger-friendly DOJ ultimately approved the deal.

Alongside Bondi, Slater was overseeing the DOJ's review of Netflix's proposed acquisition of Warner Bros. Discovery. In December, Trump said he would be involved in the regulatory review. That followed intense lobbying by Netflix and Paramount, the latter of which launched a hostile takeover bid. Earlier this month, The Wall Street Journal reported that the department was investigating whether Netflix was involved in anticompetitive practices during the process.

Slater's ousting also comes weeks ahead of the DOJ's antitrust trial against Ticketmaster owner Live Nation. The department's lawsuit was filed during the Biden administration. It claims that Live Nation is operating as a monopoly, harming competition, fans, industry promoters and artists.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/antitrust-head-overseeing-netflix-warner-merger-resigns-192854114.html?src=rss

NVIDIA is still planning to make a ‘huge’ investment in OpenAI, CEO says

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NVIDIA CEO Jensen Huang told reporters that the company will "invest a great deal of money" in OpenAI's latest funding round, according to Bloomberg, after The Wall Street Journal on Friday reported that the two companies were rethinking a previous $100 billion deal that hasn't "progressed beyond the early stages" of negotiations. Speaking to reporters in Taipei this weekend, Huang reportedly said it could be "the largest investment we've ever made." 

NVIDIA and OpenAI jointly announced in September that NVIDIA would be investing up to $100 billion in OpenAI to build 10 gigawatts of AI data centers. The companies said then that they were targeting the second half of 2026 for the first phase of the project to go online. Citing sources familiar with the discussions, The Wall Street Journal reported that Huang has highlighted privately that the agreement was nonbinding and has criticized OpenAI's business approach as lacking discipline. 

According to Bloomberg, however, Huang called the report's claims "nonsense," and told reporters on Saturday, "I believe in OpenAI. The work that they do is incredible. They’re one of the most consequential companies of our time.” But, Bloomberg reports, he said NVIDIA's investment in this funding round wouldn't come near $100 billion.

This article originally appeared on Engadget at https://www.engadget.com/ai/nvidia-is-still-planning-to-make-a-huge-investment-in-openai-ceo-says-205521528.html?src=rss

OnlyFans is reportedly in talks to sell a 60 percent stake to a San Francisco investment firm

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OnlyFans is looking to cash out once again, but this time in a deal that would value it at several billion dollars less than a potential sale that previously fell through. As reported by TechCrunch, the online platform known for subscription-based pornographic content is in talks to sell a majority stake to Architect Capital, an investment firm based in San Francisco.

According to the report, the proposed deal includes $3.5 billion in equity and $2 billion in debt, which values OnlyFans at $5.5 billion. TechCrunch also reported that Architect Capital and OnlyFans are currently in exclusive talks, where the website's owner can't negotiate with other potential buyers for a certain amount of time.

With no set timeline yet for the deal, the deal is far from an official closing. Last year, OnlyFans' owner Leonid Radvinsky was also negotiating with another investment firm, Forest Road Company, to sell the platform. Although that deal never went through, the talks leading up to the sale valued OnlyFans at a much higher $8 billion. The London-based website, which still doesn't want to be known as just a porn site, is still growing and reported a nine percent increase in gross revenue for its 2024 fiscal year, earning more than $7.2 billion.

This article originally appeared on Engadget at https://www.engadget.com/social-media/onlyfans-is-reportedly-in-talks-to-sell-a-60-percent-stake-to-a-san-francisco-investment-firm-191842666.html?src=rss

Apple acquires Q.ai for a reported $2 billion

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Apple has acquired Israel-based startup Q.ai, a move that could provide a much-needed boost to the tech giant's capabilities in artificial intelligence. Although Apple has not disclosed terms of the deal, sources told Financial Times that the arrangement is reportedly valued at nearly $2 billion. If that figure is accurate, the Q.ai acquisition marks Apple's second largest acquisition to date, followed by its purchase of Beats for $3 billion back in 2014.

Johny Srouji, Apple’s senior vice president of hardware technologies, said in a statement that Q.ai "is a remarkable company that is pioneering new and creative ways to use imaging and machine learning." Apple hasn't shared any specifics about how it plans to leverage the startup, but its past work indicates the possibility of Apple moving deeper into AI-powered wearables. "Patents filed by Q.ai show its technology being used in headphones or glasses, using 'facial skin micro movements' to communicate without talking," the Times reported. 

The startup's founding team, including CEO Aviad Maizels, will join Apple as part of the deal. This acquisition marks Maizels' second sale to Apple; he previously founded a three-dimensional hearing business called PrimeSense that Apple bought back in 2013.

For several months, many tech insiders have speculated that an acquisition might be Apple's best path forward to catching up in the AI race. In the company's Q3 earnings call in July 2025, CEO Tim Cook acknowledged that "We’re open to M&A that accelerates our roadmap." A deal like this one could eventually lead to Apple developing its own fully in-house AI chatbot rather than relying on a competitor like Google to power artificial intelligence in its Siri assistant.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/apple-acquires-qai-for-a-reported-2-billion-190017949.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

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

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

Warners Bros. Discovery board urges shareholders to reject amended Paramount bid

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In a unanimous written determination, the Warner Bros. Discovery's board is advising shareholders to once again reject Paramount Skydance's "inadequate" hostile takeover bid. The letter to shareholders cites a number of concerns with the offer and reiterates its position that Netflix's offer remains superior. Netflix and WBD have entered into a merger agreement in early December after the WBD board selected its offer over other bidders.

There are two key differences between the two options: Netflix is willing to pay $82 billion, but only for the Warner Bros., HBO and HBO Max divisions; Paramount Skydance's latest offer came in at $108 billion and is for all of WBD's assets, including CNN, HGTV, Food Network and many more. The Netflix deal leaves those assets in the hands of WBD shareholders, to be spun off as Discovery Global.

Paramount Skydance made three separate attempts to scoop up WBD before the company even opened the process up to other bidders. The third of those early offers was reportedly in the neighborhood of $24 per share, while this most recent hostile takeover stands at $30 per share.

But the WBD board has concerns. Among them, the extraordinary amount of debt required for Paramount, a studio with a market capitalization of just $14 billion, to take on an acquisition of this size. (Netflix's market cap is over $400 billion.) This comes despite Larry Ellison, the father of Paramount CEO David Ellison, stepping in to guarantee $40 billion worth of the needed financing. The board also points out that Netflix's offer is partially paid in the streaming giant's shares, which it says have the potential to provide further value in the future.

At this stage in negotiations, the board also claims opting to go with Paramount Skydance's offer would also result in WBD paying over $4 billion in termination fees.

"Your Board negotiated a merger with Netflix that maximizes value while mitigating downside risks, and we unanimously believe the Netflix merger is in your best interest," the letter states. The merger with Netflix will still have to go before regulatory bodies in the United States and Europe.

This article originally appeared on Engadget at https://www.engadget.com/entertainment/streaming/warners-bros-discovery-board-urges-shareholders-to-reject-amended-paramount-bid-141513357.html?src=rss