Tag Archives: Mergers, Acquisitions & Takeovers

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

Co-founder of CD Projekt Michał Kiciński has acquired GOG, the company’s game storefront

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Michał Kiciński, co-founder of CD Projekt, has acquired total ownership of the DRM-free video game storefront GOG. The digital video game platform was started by CD Projekt in 2008 with a stated mission to preserve "Good Old Games" (hence the GOG acronym). CD Projekt is known for its game studio CD Projekt Red, the developers The Witcher series and Cyberpunk 2077.

GOG said Kiciński bought 100 percent of its shares for PLN 90.7 million ($25 million). The acquisition was fully financed through committed funding secured at the sale’s closing and did not involve the sale of any of Kiciński’s CD Projekt shares.

The storefront will continue to operate independently under its new owner, sticking with its DRM-free philosophy and ongoing work to keep classic titles playable on modern PCs. After the sale, CD Projekt and GOG signed a distribution agreement that will see CD Projekt Red games continue to be listed on GOG.

While the press release for the sale did not list a reason, a report posted Monday under the Regulatory Announcements section of the CD Projekt website states "the sale of shares in GOG is consistent with the CD PROJEKT Group growth strategy, which assumes focusing on the core business of the Company, i.e., developing and publishing video games and related projects based on the owned and new franchises." The report also describes a "competitive sale process," implying that Kiciński may not have been the only bidder.

While it seems Kiciński will have a hands-on role in GOG after its acquisition, his current involvement at CD Projekt is less clear. He remains a significant shareholder but is not listed on the company's Management board or its Supervisory board.

This article originally appeared on Engadget at https://www.engadget.com/gaming/pc/co-founder-of-cd-projekt-micha%C5%82-kicinski-has-acquired-gog-the-companys-game-storefront-174853415.html?src=rss

Paramount has an updated Warner Bros. Discovery bid

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

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

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

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

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

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

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

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

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

Trump’s TikTok deal is another step closer to finally actually happening

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Remember back in September when President Donald Trump signed an executive order that seemingly finalized some of the terms of a deal to spin off TikTok's US business? Three months later, that same deal is apparently one step closer to being official.

According to Bloomberg, TikTok CEO Shou Chew told employees that TikTok and ByteDance had signed off the agreement for control of TikTok's US business. It sounds like terms of the deal are roughly the same as what Trump announced earlier this year. A group of US investors, including Oracle, Silver Lake and MGX will control a majority of the new entity while ByteDance will keep a smaller stake in the venture. 

According to Chew's memo, the deal is expected to close January 22, 2026. “Upon the closing, the US joint venture, built on the foundation of the current TikTok US Data Security (USDS) organization, will operate as an independent entity with authority over US data protection, algorithm security, content moderation and software assurance,” he wrote according to Bloomberg.  TikTok didn’t immediately respond to a request for comment.

Notably, it's still not clear where Chinese officials stand on the deal. Trump said back in September that China was "fully on board," but subsequent meetings between the two sides have so far produced vague statements. In October, China's Commerce Ministry said it would "work with the U.S. to properly resolve issues related to TikTok." 

If a deal is indeed finalized by next month, it will come almost exactly a year after Trump's first executive order to delay a law that required a sale or ban of the app front taking effect. He has signed off several other extensions since.

This article originally appeared on Engadget at https://www.engadget.com/social-media/trumps-tiktok-deal-is-another-step-closer-to-finally-actually-happening-001813404.html?src=rss

Warner Bros. Discovery rejects Paramount’s hostile bid

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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

The Morning After: Tech’s biggest winners of 2025

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As we wrap up 2025, we’re looking at the year’s biggest winners: the people, companies, products and trends that made the most impact over the year. Almost at the top of the pile, of course, are the tech billionaires. 

According to a recent report by Oxfam, the 10 richest US billionaires (who are all tech leaders, save for Warren Buffet) increased their wealth by $698 billion in 2025. Some of that has been spent treating and lavishing donations on President Trump. Elon Musk reportedly donated nearly $300 million to Trump and Republican allies, and several tech companies have pitched in to build the president’s White House ballroom.

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ALLISON ROBBERT via Getty Images

Thanks to updates from Meta, Google, OpenAI and others, AI video is more realistic and easier to make than ever. AI video is everywhere. It’s not only overtaken your Facebook and Instagram recommendations, but Meta created an entirely separate feed just for users’ AI-generated fever dreams. The numbers are huge: OpenAI’s Sora, which lets you make AI videos of real people, was downloaded a million times in just a few days. And Google’s Veo generated more than 40 million videos in a few weeks of launching. AI slop is here to stay, and it’s everywhere.

We didn’t say the winners would all be positive. But hey, the Switch 2 is great.

— Mat Smith

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The Warner Bros. studios water tower. (Reuters / REUTERS)

Paramount wasn’t going to let Netflix pick up Warner Bros. Discovery (WBD) without a fight. Following the streaming service’s $82.7 billion deal to buy much of WBD, Paramount is making a hostile takeover bid of $108 billion, pitching directly to WBD shareholders with an all-cash offer of $30 per share, which expires on January 8.

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. Paramount, however, wants to pick up the entirety of WBD, while Netflix only wants the studios and streaming businesses.

Whoever bought (or buys?) WBD would face government opposition from all sides. Paramount had already sent WBD a letter questioning the “fairness and adequacy” of the acquisition bidding process before its hostile takeover bid.

President Trump warned the Netflix deal could be a “problem.” According to data from JustWatch, a combined Netflix and HBO would account for 33 percent of the US streaming video market.

Continue reading.

Katsuhiro Harada is departing Bandai Namco at the end of 2025. He announced the news both with a farewell note shared on X and, of course, an hour-long DJ mix. Harada’s 30-year career has been most closely involved with Tekken, and he’s a familiar face in the fighting game community.

Harada wrote on X: “To everyone who has supported me, to communities around the world, and to all the colleagues who have walked alongside me for so many years, I offer my deepest gratitude.”

Continue reading.

This article originally appeared on Engadget at https://www.engadget.com/general/the-morning-after-engadget-newsletter-122328464.html?src=rss