Warner Bros. doubles down on Netflix as its preferred buyer
What happened: Warner Bros. Discovery (WBD) is reportedly set to reject an updated acquisition offer from Paramount Skydance when its board meets this week, per Reuters. WBD rejected Paramount’s initial offer of $108.4 billion for all of the company’s assets last month, citing concerns about a lack of funding guarantees; Paramount’s renewed bid included a $40.4 billion personal guarantee from Larry Ellison, father of Paramount CEO David Ellison, as well as an increased breakup fee.
Why it matters: Rejecting Paramount Skydance again solidifies Netflix as WBD’s buyer of choice, setting the stage for the streaming company to become an enormous entertainment conglomerate straddling video, theme parks, and video games. Netflix’s power will give it significant control over consumer and advertiser pricing, potentially teeing up conflicts to come.
Meta acquires AI startup Manus for $2 billion
What happened: Meta is ramping up its spending on AI with a $2 billion acquisition of Manus, an agentic AI startup founded in China and now based in Singapore. Manus’ core product is an AI agent capable of handling multiple complex tasks like website creation and research, reportedly with far fewer prompts than other AI platforms require.
Why it matters: Meta plans to use Manus to flesh out both consumer- and enterprise-facing AI products, including integration with Meta AI. Agentic AI is a core pillar of Meta’s AI strategy: CEO Mark Zuckerberg predicted Meta AI would have 1 billion users by the end of 2025, and the company is turning chatbot data into a signal for targeted advertising. The next hurdle is regulatory approval, as Manus’ Chinese origins could trigger scrutiny in Washington.
NBCUniversal completes spinoff of linear assets
What happened: Versant, the spinoff company that contains NBCUniversal’s linear TV assets, debuted on the stock market Monday and promptly fell nearly 14%. Comcast, on the other hand, enjoyed a slight value bump. When NBCU announced the spinoff in February 2025, CEO Brian Roberts said that 98% of Peacock viewership “does not include the spun networks.”
Why it matters: Versant’s debut signals the next stage for linear TV. While linear will still command $49.39 billion in US ad spending this year (compared with CTV’s $37.95 billion), viewership is steadily shifting to digital channels. The tepid stock market debut doesn’t bode well for Versant, but its networks may still launch direct-to-consumer options in the future and will command billions in ad spending for years to come.
OpenAI is working on ad format mockups
The news: OpenAI’s caginess around the perhaps inevitable launch of an ad business could come to an end this year. The Information reported late last month that there is a heads-down effort to prototype ad formats at the company, including sponsored information in chatbot answers.
Why it matters: OpenAI has made several high-profile advertising hires, though CEO Sam Altman has repeatedly called ads a “last resort.” But with concerns about AI spending stirring, the company is likely to monetize in the way many tech companies before it have—through advertising. The Information’s report suggests that OpenAI is making progress on an ads launch and could reach out to brands for testing this year.