Tech Giants Face Scrutiny: Netflix-Warner Bros. Merger Questioned, Pinterest Fires Employees, and SpaceX Acquires xAI
Washington, D.C. – The tech world witnessed a flurry of activity this week, ranging from regulatory scrutiny of a major merger to internal strife over employee tracking and a significant acquisition in the artificial intelligence sector.
Netflix and Warner Bros. Discovery faced tough questions from the US Senate antitrust subcommittee on Tuesday regarding their proposed $82 billion merger. Lawmakers from both Democratic and Republican parties expressed concerns that the deal could reduce competition, potentially raise prices for consumers, and negatively impact the future of cinemas, according to the BBC. The Department of Justice (DoJ) is currently reviewing the proposed merger.
Meanwhile, Pinterest terminated the employment of two engineers after they created a tool to track which workers were affected by recent layoffs. The company, led by Chief Executive Bill Ready, recently announced job cuts impacting approximately 15% of its workforce, or about 700 roles, as part of a move to "double down on an AI-forward approach," according to an employee's LinkedIn post referencing Ready's memo. The engineers reportedly "wrote custom scripts improperly accessing confidential company information to identify the locations and names of all dismissed employees," according to Reuters.
In other news, Elon Musk's SpaceX is acquiring his artificial intelligence start-up, xAI, in a move to consolidate his business interests. SpaceX confirmed the deal, posting a memo from Musk on its website describing the combination as an "innovation engine" that will bring AI, rockets, space-based internet, and media under one roof. While the terms of the deal were not disclosed, a source familiar with the matter told Reuters that the acquisition values xAI at $125 billion and SpaceX at $1 trillion, potentially making SpaceX the most valuable private company ever. The BBC reported the deal on Friday.
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