"Blade Runner 2049" Producer Sues Elon Musk, Tesla, Warner Bros. Over Unauthorized AI-Generated Film Footage

Paramount Skydance has delayed closing its $110B-$111B acquisition of Warner Bros. Discovery due to a 12-state antitrust lawsuit. The U.S. Justice Department approved the deal, but states allege harm to competition in basic cable and theatrical film distribution. The outcome will determine the transaction's timeline. Paramount has secured approvals from 68 jurisdictions, but the U.S. lawsuit remains an obstacle.

Tesla has begun offering paid rides in its Cybercab robotaxis, which lack conventional controls. The NHTSA is auditing 1,000 Cybercab vehicles to assess compliance with federal safety standards. Tesla's move could test regulatory limits, as experts debate the vehicle's safety and adherence to standards. The company's stock valuation is $1.4 trillion, reflecting its focus on self-driving technology. Tesla has not responded to requests for comment.

Paramount and Warner Bros. Discovery's $110B merger faces a multistate antitrust lawsuit, with states arguing it would raise streaming prices and reduce consumer choices. The DOJ cleared the deal, but a trial is set for 2027. Current streaming prices range from $7.99 to $19.99/month. The merger could also limit opportunities for independent creators by reducing distribution channels. Legal and consumer impacts remain uncertain.

California and 11 other states sued to block Paramount's $110B acquisition of Warner Bros. Discovery, citing antitrust concerns. The case follows similar media mergers like Disney-Fox, Comcast-NBCUniversal, and AT&T-Time Warner, with varying regulatory outcomes. The lawsuit focuses on potential market dominance in film distribution and cable licensing.

Tesla launched its Cybercab, a two-seater autonomous vehicle without a steering wheel or mirrors, for ride-hailing in Austin. The NHTSA opened an investigation to assess its compliance with federal safety standards, which were designed for traditional vehicles. Tesla claims the Cybercab meets all applicable standards, but the NHTSA seeks to review the certification process and technical data. Non-compliance could lead to a recall and fines.

U.S. stocks fell Friday after a strong jobs report increased expectations of a Fed rate hike. Dow, S&P 500, and Nasdaq declined. Lululemon dropped 17% after cutting guidance; Tesla fell 6% amid a safety probe. August payrolls rose 162,000, exceeding estimates. President Trump criticized the Fed and markets.