VOLUME 46

Happy 5th of July! Typically I send these newsletters out every Thursday, but I was taking some much needed R&R yesterday, so enjoy today’s Friday edition! Today we have some big updates in the world of Hollywood, AI and more.

Enjoy!

— Jacob Pace

Paramount and Skydance Near Merger Deal

In some recent developments surrounding the entertainment industry, Hollywood empires Paramount and Skydance have reached a tentative merger agreement, just weeks after their initial talks collapsed. The deal apparently got reignited after media tycoon Barry Diller expressed interest in the deal, which put a fire under everyone. Interestingly enough, Barry Diller actually tried to purchase Paramount back in the 90s but lost the deal to Sumner Redstone, the late father of current Paramount chief Shari Redstone.

The deal, if approved by Paramount's board of directors, will combine the resources and portfolios of both companies. And in case you didn’t already know how massive these two companies are, Paramount currently owns properties such as CBS, MTV, and Nickelodeon while Skydance is the studio behind hits like "Top Gun: Maverick” and “The Tomorrow War.”

The merger comes as Paramount wrestles with the decline of cable TV and the financial pressures of operating digital streaming services. If the deal goes through, Paramount would likely implement significant cost reductions to manage its substantial debt and invest resources to continue building its streaming business.

Logan Paul Sues Coffeezilla Over Fraud Allegations

Just a little over a month after his defamation lawsuit against controversial boxer Ryan Garcia, Logan Paul is back again with another lawsuit, this time, against Stephen Findeisen — better known as Coffeezilla, an internet detective famous for exposing online scams.

The lawsuit alleges defamation and seeks damages for Coffeezilla's investigative reports, which accused Paul of fraudulent business practices in his web3 venture CryptoZoo. Paul's legal team asserts that the reports were false and damaging to his reputation, while Coffeezilla stands by his claims, where he’s cited extensive research and evidence in a 3-part video series that was published in 2022, and has amassed more than 20M views. Paul’s team is seeking $75,000 in damages plus legal fees.

The lawsuit has created a ton of conversation online, with people reacting to the situation on YouTube and X, saying that the lawsuit is baseless. I’ve watched the Coffeezilla videos, and they’re pretty convincing. I think this one will be tough for Paul to win, which makes me think he’s doing it to try and have an on-the-record response to Findeisen’s claims, which has been an ongoing feud between them ever since the videos came out.

OpenAI and TIME Magazine Strike Landmark Deal

OpenAI has recently teamed up with TIME Magazine to strike a partnership that brings together artificial intelligence and journalism, during what has been a controversial time at the intersection of both worlds. The collaboration aims to leverage OpenAI's technologies to enhance TIME's editorial capabilities, offering new ways to generate content and create personalized reader experiences. In addition, OpenAI will have access to TIME’s current reporting as well as archives from the last 100-plus years it’s operated as a weekly news magazine.

The deal comes about a month after News Corp announced it had struck a content-licensing deal with OpenAI. The owner of the Wall Street Journal and New York Post said its agreement allows OpenAI to use content from News Corp’s consumer publications and their archives to answer queries and train its AI technology.

The deal between TIME and OpenAI seems like a win-win to me. TIME gets access to cutting-edge tech to improve its product, and OpenAI gets access to a rich trove of information to train its models. Go stonks!

YouTube Seeks Major Label Deals to Legitimize AI-Generated Music

Word on the street is YouTube is trying to get into the AI music generation game, and trying to take a slightly more legitimate approach to its licensing strategy. The company is reportedly in the midst of high-stakes negotiations with all three major music labels, including Sony Music Entertainment, Warner Records, and Universal Music Group, to secure licensing agreements for its AI-generated music initiatives. These discussions come shortly after recent lawsuits from the same music companies against AI startups Suno and Udio, for using copyrighted music without permission to train their models.

Well, in response to the recent legal storm, YouTube is aiming to preempt similar legal issues by offering substantial lump-sum payments to these labels, ensuring that its AI tools, capable of cloning popular artists' styles, are developed ethically and legally. The approach is similar to previous agreements between record labels and social media platforms, focusing on one-time payments rather than ongoing royalties.

The outcome of these negotiations could set a significant precedent for how the music industry adapts to AI. YouTube's efforts to obtain proper licenses and possibly implement an opt-in model for artists could create a new standard surrounding ethics related to AI-generated content.

If you made it this far, I hope you have a great weekend, and hope you enjoyed!