Business
Netflix and Paramount Compete for Warner Bros Acquisition
A high-stakes contest is unfolding between two major companies vying for control of Warner Bros Discovery.
A high-stakes battle is unfolding in Hollywood as major players vie for control of Warner Bros Discovery, a legendary entertainment company.

Backed by the wealthy Ellison family, Paramount Skydance has been courting Warner Bros for months, seeking to merge with the iconic studio and bolster its position in the rapidly evolving media landscape, where streaming giants like Netflix and Disney dominate.
Despite Paramount's overtures, Warner Bros has opted to pursue a deal with Netflix, agreeing to sell its prized studio and streaming divisions to the streaming powerhouse.
Undaunted, Paramount CEO David Ellison has launched a bold hostile takeover bid, taking his proposal directly to Warner Bros' shareholders in a bid to acquire the company.
In the world of corporate finance, a hostile takeover occurs when one company seeks to acquire another without the consent of the target company's management, typically by making a direct offer to purchase the target's shares.
This approach differs from a friendly takeover, where both companies' boards of directors and shareholders agree to the terms of the deal.
According to a company filing cited in media reports, Paramount's move was prompted by Netflix's perceived lack of response to its recent overtures, leading Ellison to take a more aggressive approach.
Netflix's proposed deal would see it acquire Warner Bros' studio and streaming networks, with the remaining assets spun off into a separate, independent company.
The offer values Warner Bros' key holdings, including esteemed brands like Warner Bros, New Line Cinema, and HBO Max, at $82.7 billion, including debt.
Netflix has sweetened its offer, proposing to pay $27.75 per share in cash, up from its initial bid, which included a combination of cash and shares in the new company.
In contrast, Paramount is seeking to acquire the entire Warner Bros company, including its traditional pay-TV networks, which are facing significant challenges in the current market.
Paramount's proposed deal values the entire company at $108.4 billion.
The company is offering to pay $30 per share in an all-cash deal, which it claims provides shareholders with greater certainty than Netflix's proposal, and has also agreed to cover the $2.8 billion break-up fee Warner Bros would owe Netflix if the deal falls through.
Both proposals are subject to a lengthy review process, with completion dates still many months away.
Warner Bros, a company with a rich history spanning nearly a century, boasts an extensive library of content, featuring beloved classics like Looney Tunes, Casablanca, and Harry Potter, as well as acclaimed HBO programming like The Sopranos and Succession.

However, the company has faced significant pressure as the rise of online streaming has disrupted the film and television industries.
For Netflix, acquiring Warner Bros' film and streaming division would significantly enhance its movie offerings and prevent potential competitors from accessing Warner Bros' valuable content.
Paramount, on the other hand, is seeking a partner that would provide the necessary scale to compete with industry giants like Netflix and Disney.
A successful takeover would build on David Ellison's previous acquisition of Paramount, which he merged with his Skydance film studio earlier this year.
On the streaming front, Paramount aims to combine HBO Max's 120 million subscribers with its own 79 million, creating a more formidable competitor in the market.
Analysts believe that a merger could also benefit traditional pay-TV networks, providing them with greater negotiating power and opportunities for cost savings.
Paramount's traditional networks include notable brands like Nickelodeon, CBS, and Comedy Central, while Warner Bros would bring CNN, the Food Network, and a range of sports offerings to the table.
Both proposed deals raise concerns about competition and are likely to face intense scrutiny from regulators in the US and Europe.
Netflix's plan has sparked warnings about the potential for increased dominance in the streaming market, potentially squeezing out smaller players and exerting greater control over actors and screenwriters.
A combined Paramount-Warner Bros entity would also control a significant portion of sports and children's entertainment, potentially raising concerns among advertisers and local television distributors.
Paramount's plans have been closely watched due to the potential impact on the news business, particularly given the Ellison family's ties to former President Trump.
Analysts suggest that regulatory approval will depend on how broadly the market is defined and whether players like YouTube are considered part of the competitive landscape.
Some observers have noted that Paramount may be in a stronger position due to its connections to the Ellison family, including tech billionaire Larry Ellison, a prominent Republican donor.
Former President Trump has called for CNN to be sold to new owners as part of any deal, a condition that Paramount's bid would satisfy.
However, Trump has not explicitly endorsed either proposal, leaving the outcome uncertain.
Although Trump has praised the Ellisons in the past, he recently criticized their ownership of Paramount on social media, following a 60 Minutes interview with Republican Representative Marjorie Taylor Greene.
Previously, Trump had expressed concerns about Netflix's proposed deal, citing the company's size, while also praising its leadership.
In February, Trump stated that he would leave the decision to the Department of Justice, rather than taking a personal role in the process.
The outcome remains unclear.
Neither Netflix nor Paramount has provided detailed information on how they plan to integrate Warner Bros into their existing operations or create new streaming packages.
The acquisition could potentially allow Netflix to increase its prices, but if customers find they are paying for a single streaming service instead of two, it could ultimately cost them less.
According to analysts at Raymond James, over 70% of HBO Max subscribers in the US also have a Netflix subscription.
Initially, Paramount's offer included financing from Jared Kushner's investment firm Affinity Partners, which he founded in 2021.
Kushner, who is estimated to have a fortune worth over $1 billion, is the son-in-law of former President Trump.
Kushner and other investors, including sovereign wealth funds from Saudi Arabia and Qatar, had agreed not to take controlling roles in the company in exchange for their investments.
Following increased scrutiny over the Trump family's involvement, Jared Kushner announced that his company would withdraw from the transaction.
Further research and reporting were contributed by Danielle Kaye and Pritti Mistry.
Business
Artist Alleges AirAsia Used His Work Without Permission
A street artist from Penang has reported that one of his artworks has been replicated and featured on the design of an airplane.
A lawsuit has been filed by a Malaysian-based artist against AirAsia and its parent company, Capital A Berhad, alleging unauthorized use of the artist's designs on one of the airline's planes.

According to the lawsuit, Ernest Zacharevic, a Lithuanian-born artist residing in Penang, claims that his 2012 street mural, Kids on Bicycle, was reproduced and displayed on an AirAsia aircraft in late 2024 without his permission.
Zacharevic states that the use of his design was unauthorized, and no licensing agreement or consent was obtained, adding that the livery was removed after he publicly expressed concerns about the matter.
The BBC has reached out to AirAsia for a statement regarding the allegations.
In an interview with the BBC on Thursday, Zacharevic recalled that he first became aware of the alleged copyright infringement in October 2024, when he discovered that an AirAsia plane was featuring a livery resembling his artwork.
With over a decade of experience in Malaysia, Zacharevic is known for his roadside murals in Penang, which have become a staple of the local art scene.
One of Zacharevic's notable works is the 2012 street mural Kids on Bicycle, created for a local festival, which features two children on a bicycle integrated into the mural, located in George Town's heritage district.
The mural has become a popular tourist attraction, with many visitors taking photos in front of the iconic artwork.
Zacharevic alleges that his work was reproduced on an AirAsia plane without his knowledge or consent, and he personally witnessed the plane in operation at an airport.
Recalling the incident, Zacharevic expressed his discomfort with the situation, which occurred in 2024.
He took to social media to address the issue, posting a photo of the plane and tagging the airline, suggesting that they needed to discuss the use of his artwork.

Since then, Zacharevic has engaged in discussions with the company, but they have been unable to come to a mutually agreeable resolution.
This is not the first instance of Zacharevic's work being used in connection with AirAsia, as he claims the airline has also used his artwork on a delivery bag for its food services arm.
Court documents reveal that Zacharevic had previously discussed a potential collaboration with AirAsia in 2017, where he would create art for the airline's jets and a mural in one of their offices.
According to the documents, Zacharevic had informed the airline of his work and business rates during these discussions.
The lawsuit asserts that despite being aware of Zacharevic's work and rates, the airline proceeded to reproduce and publicly display one of his notable works, thereby infringing on his copyright and moral rights.
As the largest low-cost carrier in Asia, AirAsia operates over 200 jets to more than 100 destinations, and has recently announced plans to resume flights from Kuala Lumpur to London via Bahrain.
Zacharevic has stated that he will leave it to the court to determine any potential compensation he may be entitled to.
The artist emphasized that he does not consider the use of his artwork to be a mere reference to cultural or geographical associations, but rather a distinct artistic creation.
Zacharevic stressed that his artwork is the result of years of professional training, skill, and labor, and should be recognized as such.
Business
US Businesses and Consumers Bear Brunt of Trump Tariff Costs, According to NY Fed
In 2022, the United States saw a significant increase in collective import tariff rates, with rates rising by more than 300 percent for a range of imported goods.
The modification of tariff agreements by President Donald Trump with several countries had a consistent outcome: increased costs for US-based companies and consumers.

According to a study released on Thursday by the Federal Reserve Bank of New York, the average tariff rate on imported goods increased significantly, rising from 2.6% at the beginning of the year to 13% in 2025.
The New York Fed's research revealed that US companies absorbed approximately 90% of the costs associated with the higher tariffs imposed by Trump on goods from countries such as Mexico, China, Canada, and the European Union.
The Federal Reserve Bank of New York stated that "the majority of the economic burden of the high tariffs imposed in 2025 continues to be borne by US firms and consumers."
When tariff rates changed and increased in the previous year, exporting countries did not adjust their prices to mitigate potential declines in US demand.
Instead of lowering prices, exporters maintained their existing prices and transferred the tariff costs to US importers, who subsequently increased the prices of these goods for consumers.
The response of exporters in 2025 was similar to their reaction in 2018, when Trump introduced certain tariffs during his first term, resulting in higher consumer prices with minimal other economic effects, as noted by the New York Fed at the time.
The New York Fed's findings on Thursday are consistent with the results of other recent analyses.
The Kiel Institute for the World Economy, a German research organization, reported last month that its research indicated "nearly complete pass-through of tariffs to US import prices."
By analyzing 25 million transactions, Kiel researchers discovered that the prices of goods from countries like Brazil and India did not decrease.
The Kiel report noted that "trade volumes declined" instead, indicating that exporters preferred to reduce the quantity of goods shipped to the US rather than lower their prices.
The National Bureau of Economic Research also found that the pass-through of tariffs to US import prices was "nearly 100%", meaning that the US bears the cost of the price increase, not the exporting countries.
Similarly, the Tax Foundation, a Washington DC-based think tank, found that the increased tariffs on goods in 2025 resulted in higher costs for American households.
The Tax Foundation considered tariffs as a new tax on consumers and estimated that the 2025 increases resulted in an average cost of $1,000 (£734.30) per household, with a projected cost of $1,300 in 2026.
The Tax Foundation reported that the "effective" tariff rate, which accounts for decreased consumer purchases due to higher prices, is now 9.9%, representing the highest average rate since 1946.
The Tax Foundation concluded that the economic benefits of tax cuts included in Trump's "Big Beautiful Bill" will be entirely offset by the impacts of the tariffs on households.
Business
BBC Reporter Exposed to Cyber Attack Due to Vulnerabilities in AI Coding Tool
The demand for vibe-coding tools, which enable individuals without coding experience to develop applications using artificial intelligence, is experiencing rapid growth.
A significant and unresolved cyber-security vulnerability has been identified in a popular AI coding platform, according to information provided to the BBC.

The platform, known as Orchids, utilizes a "vibe-coding" approach, enabling individuals without technical expertise to create apps and games by inputting text prompts into a chatbot.
In recent months, such platforms have gained widespread popularity, often being touted as an early example of how AI can rapidly and affordably perform various professional tasks.
However, experts warn that the ease with which Orchids can be compromised highlights the risks associated with granting AI bots extensive access to computers in exchange for autonomous task execution.
Despite repeated requests for comment, the company has not responded to the BBC's inquiries.
Orchids claims to have a user base of one million and boasts partnerships with top companies, including Google, Uber, and Amazon.
According to ratings from App Bench and other analysts, Orchids is considered the top program for certain aspects of vibe coding.
Cyber-security researcher Etizaz Mohsin demonstrated the platform's security flaws to the BBC.
To test the platform's security, a spare laptop was used to download the Orchids desktop app and initiate a vibe-coding project.
A request was made to the Orchids AI assistant to generate code for a computer game based on the BBC News website.

The AI assistant automatically compiled code on the screen, which, without prior experience, was unintelligible.
By exploiting a specific cyber-security weakness, Mohsin was able to access the project and view and edit the code.
Mohsin then added a line of code to the project, which went unnoticed.
This action apparently allowed him to gain access to the computer, as evidenced by the subsequent appearance of a "Joe is hacked" notepad file on the desktop and a changed wallpaper featuring an AI hacker image.
The potential implications of this hack on the platform's numerous projects are significant.
A malicious hacker could have easily installed a virus on the machine without any action required from the victim.
Sensitive personal or financial data could have been compromised.
An attacker could have accessed internet history or even used the computer's cameras and microphones for surveillance.
Most cyber-attacks involve tricking victims into downloading malicious software or divulging login credentials.
This particular attack was carried out without any involvement from the victim, known as a zero-click attack.
Mohsin stated that the vibe-coding revolution has introduced a new class of security vulnerabilities that did not previously exist, highlighting the risks associated with relying on AI to handle tasks.
The concept of AI handling tasks autonomously comes with significant risks, according to Mohsin.
Mohsin, a 32-year-old from Pakistan currently residing in the UK, has a history of discovering dangerous software flaws, including work on the Pegasus spyware.

Mohsin discovered the flaw in December 2025 while experimenting with vibe-coding and has since attempted to contact Orchids through various channels, sending around a dozen messages.
The Orchids team responded to Mohsin this week, stating that they may have missed his warnings due to being overwhelmed with incoming messages.
According to the company's LinkedIn page, Orchids is a San Francisco-based company founded in 2025 with fewer than 10 employees.
Mohsin has only identified flaws in Orchids and not in other vibe-coding platforms, such as Claude Code, Cursor, Windsurf, and Lovable.
Nonetheless, experts caution that this discovery should serve as a warning.
Professor Kevin Curran of Ulster University's cybersecurity department notes that the main security implications of vibe-coding are the potential for code to fail under attack due to a lack of discipline, documentation, and review.
Agentic AI tools, which perform complex tasks with minimal human input, are increasingly gaining attention.
A recent example is the Clawbot agent, also known as Moltbot or Open Claw, which can execute tasks on a user's device with little human intervention.
The free AI agent has been downloaded by hundreds of thousands of people, granting it deep access to computers and potentially introducing numerous security risks.
Karolis Arbaciauskas, head of product at NordPass, advises caution when using such tools.
Arbaciauskas warns that while it may be intriguing to see what an AI agent can do without security measures, this level of access is also highly insecure.
He recommends running these tools on separate, dedicated machines and using disposable accounts for experimentation.
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