In today’s Digest, we discuss Paramount-Skydance planning a bid for Warner Bros. Discovery, the FTC investigating AI chatbots and France eyeing a TikTok inquiry. We also cover Microsoft endorsing OpenAI’s for-profit move.
Paramount-Skydance plans Warner Bros. Discovery bid
Paramount Skydance is preparing a cash bid to buy Warner Bros. Discovery. According to people familiar with the situation, the Ellison family is backing the offer. The bid would take over the entire company including Warner’s cable networks and its movie studio.
If the deal goes through, it will bring together two of Hollywood’s biggest studios. It could certainly bring about scrutiny from antitrust regulators.
Protecting kids online: FTC investigates AI chatbots, France eyes TikTok inquiry
Seven companies have received orders from the Federal Trade Commission to explain how they measure, test, and monitor risks to children and teens.
According to FTC Chairman Andrew N. Ferguson, “As AI technologies evolve, it is important to consider the effects chatbots can have on children, while also ensuring that the United States maintains its role as a global leader in this new and exciting industry.”
He added that, “The study we’re launching today will help us better understand how AI firms are developing their products and the steps they are taking to protect children.”
Similarly, French lawmaker Arthur Delaporte has asked prosecutors to open a criminal investigation into TikTok, alleging the platform has “deliberately endangered the health and lives” of young users.
Delaport told FranceInfo that “when TikTok executives came to see us, they told us that they were unaware of anything … and I believe that this also constitutes perjury.”
Delaporte co-chaired a six-month parliamentary inquiry into TikTok’s psychological effects on minors, which was heard from families, influencers, and platform executives. The committee’s final report described TikTok as a “slow poison,” exposing children to an “ocean of harmful content” through algorithm-driven bubbles. It made several recommendations including banning under 15s from social media, imposing a digital curfew between 10 p.m. and 8 a.m. for 15–18 year olds.
Microsoft endorses OpenAI’s for-profit move
Microsoft has struck a nonbinding agreement with OpenAI, paving the way for the company to convert its for-profit arm into a public benefit corporation (PBC). The move, pending state regulatory approval, could enable OpenAI to raise more capital and eventually pursue a public listing. Both Microsoft and OpenAI confirmed in a joint statement that they have signed a nonbinding memorandum of understanding (MOU) outlining the next phase of their partnership.
OpenAI board chair Bret Taylor said in a blog post that, under the deal, the nonprofit will retain control of operations while securing a stake in the new PBC worth more than USD$100bn (£73.8bn).