CNN Sues Perplexity for Copyright Infringement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 44 minutes ago
0mins
Source: seekingalpha
- Copyright Lawsuit: CNN has filed a lawsuit against Perplexity in the U.S. District Court for the Southern District of New York, accusing the AI startup of unauthorized use of over 17,000 stories, photos, and videos, highlighting a serious infringement on content creators' rights.
- Negotiation Breakdown: The lawsuit indicates that negotiations between CNN and Perplexity for content provision failed to reach an agreement on compensation, with Perplexity aware that it was not permitted to access CNN's content, reflecting a disregard for copyright laws.
- Industry Impact: A CNN spokesperson stated that Perplexity, valued at tens of billions of dollars, should not exploit original content creators, suggesting that this case could have significant implications for the regulatory landscape surrounding AI content usage.
- Legal Context: This lawsuit follows similar actions from The New York Times and other media outlets against Perplexity, indicating a growing concern within the media industry regarding the legal boundaries of AI technologies using original content.
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Analyst Views on WBD
Wall Street analysts forecast WBD stock price to fall
14 Analyst Rating
5 Buy
9 Hold
0 Sell
Moderate Buy
Current: 27.140
Low
14.75
Averages
24.98
High
30.00
Current: 27.140
Low
14.75
Averages
24.98
High
30.00
About WBD
Warner Bros. Discovery, Inc. is a global media and entertainment company that creates and distributes a portfolio of branded content across television, film, streaming and gaming. The Company's segments include Streaming, Studios and Global Linear Networks. The streaming segment primarily consists of its premium pay-television and streaming services. The studios segment primarily consists of the production and release of feature films for initial exhibition in theaters, production and initial licensing of television programs to third parties and its networks/streaming services, distribution of its films and television programs to various third party and internal television and streaming services, distribution through the home entertainment market (physical and digital), related consumer products and themed experience licensing, and interactive gaming. The Global Linear Networks segment primarily consists of its domestic and international television networks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Warner Bros. Discovery Secures Required Consents for Proposed Amendments
- Consent Solicitation Success: Warner Bros. Discovery (WBD) successfully received the requisite consents on May 26, 2026, allowing amendments to its existing senior unsecured notes totaling approximately $1.39 billion, indicating strong investor support for the company's strategic direction.
- Acquisition Plan Advancement: The consent solicitation is linked to Paramount Skydance Corporation's acquisition of WBD, reflecting positive market expectations for the deal, which could provide WBD with new capital and resources to support its business expansion.
- Temporary Identifier Arrangement: Bonds of eligible consenting holders will be moved to a temporary identifier on the Payment Date, expected to be effective on May 29, 2026, which will distinguish these bonds in trading from those of non-eligible holders, enhancing market liquidity.
- Cash Payment Commitment: Paramount has committed to using cash to pay the consent fees, even though the acquisition is not yet completed, demonstrating confidence in WBD's future and potentially increasing investor recognition of the transaction.
See More
CNN Sues Perplexity for Copyright Infringement
- Copyright Lawsuit: CNN has filed a lawsuit against Perplexity in the U.S. District Court for the Southern District of New York, accusing the AI startup of unauthorized use of over 17,000 stories, photos, and videos, highlighting a serious infringement on content creators' rights.
- Negotiation Breakdown: The lawsuit indicates that negotiations between CNN and Perplexity for content provision failed to reach an agreement on compensation, with Perplexity aware that it was not permitted to access CNN's content, reflecting a disregard for copyright laws.
- Industry Impact: A CNN spokesperson stated that Perplexity, valued at tens of billions of dollars, should not exploit original content creators, suggesting that this case could have significant implications for the regulatory landscape surrounding AI content usage.
- Legal Context: This lawsuit follows similar actions from The New York Times and other media outlets against Perplexity, indicating a growing concern within the media industry regarding the legal boundaries of AI technologies using original content.
See More
CNN Sues Perplexity for Copyright Infringement
- Legal Action Intensifies: CNN filed a lawsuit against Perplexity on Thursday, alleging the AI search engine unlawfully distributes its copyrighted content, marking the latest legal battle between news publishers and AI firms, which could impact Perplexity's business model and reputation.
- Copyright Dispute Context: CNN's statement asserts that Perplexity, valued at tens of billions of dollars, should not steal from original content creators, reflecting the news industry's strong opposition to the use of AI technology, potentially triggering broader industry repercussions.
- Industry Response: Since the launch of OpenAI's ChatGPT, concerns among news publishers about their content being repurposed have intensified, prompting several news organizations to sign licensing agreements with major tech companies to ensure legal content use and fair compensation, which may alter future content distribution models.
- Future Outlook: CNN emphasizes that commercial operators must pay for high-quality news content, and if Perplexity continues to refuse reasonable licensing arrangements, it will face legal damages, a statement that may encourage other news organizations to take similar legal actions to protect their rights.
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- M&A Context: This financing is aimed at supporting Paramount's $110 billion acquisition of Warner Bros., which is expected to reshape the media landscape by merging two of Hollywood's largest legacy firms.
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- Product Promotion: Ulta will launch three Supergirl-inspired beauty looks, including Power Glam, Grunge Romance, and Iconic Shimmer, and promote them through an interactive buying guide on its website, thereby increasing consumer engagement and interest.
- Market Events: In celebration of the film's world premiere, Ulta will host events in New York City, Los Angeles, Dallas, and Chicago, further boosting brand visibility and attracting more customers to participate in the promotional activities.
- Advertising Campaign: Ulta will run promotional spots featuring Supergirl star Milly Alcock across cinemas, social media, cable TV, and streaming channels, aiming to enhance brand awareness and drive sales through a multi-channel marketing strategy.
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Paramount CEO Promises 30 Movies Annually Amid Merger Scrutiny
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- Regulatory Scrutiny: The $110 billion deal faces ongoing scrutiny from California regulators and Congressional Democrats, with 34 Democrats warning of potential job losses in Hollywood and fewer entertainment choices, urging California AG to closely examine the merger.
- Competitive Pressure: Paramount outbid Netflix to secure a definitive merger agreement with Warner Bros. Discovery at $31.00 per share, totaling $110 billion, demonstrating its commitment to building a competitive powerhouse in the entertainment industry, even as Netflix opted not to pursue the deal further.
- Market Sentiment: While Paramount Skydance's stock remained flat in premarket trading, retail sentiment has been 'extremely bullish' with high message volume on Stocktwits over the past 24 hours, despite the stock declining over 21% this year.
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Warner Bros. Discovery Secures Required Consents for Proposed Amendments
- Consent Solicitation Success: Warner Bros. Discovery (WBD) successfully received the requisite consents on May 26, 2026, allowing amendments to its existing senior unsecured notes totaling approximately $1.39 billion, indicating strong investor support for the company's strategic direction.
- Acquisition Plan Advancement: The consent solicitation is linked to Paramount Skydance Corporation's acquisition of WBD, reflecting positive market expectations for the deal, which could provide WBD with new capital and resources to support its business expansion.
- Temporary Identifier Arrangement: Bonds of eligible consenting holders will be moved to a temporary identifier on the Payment Date, expected to be effective on May 29, 2026, which will distinguish these bonds in trading from those of non-eligible holders, enhancing market liquidity.
- Cash Payment Commitment: Paramount has committed to using cash to pay the consent fees, even though the acquisition is not yet completed, demonstrating confidence in WBD's future and potentially increasing investor recognition of the transaction.
See More
CNN Sues Perplexity for Copyright Infringement
- Copyright Lawsuit: CNN has filed a lawsuit against Perplexity in the U.S. District Court for the Southern District of New York, accusing the AI startup of unauthorized use of over 17,000 stories, photos, and videos, highlighting a serious infringement on content creators' rights.
- Negotiation Breakdown: The lawsuit indicates that negotiations between CNN and Perplexity for content provision failed to reach an agreement on compensation, with Perplexity aware that it was not permitted to access CNN's content, reflecting a disregard for copyright laws.
- Industry Impact: A CNN spokesperson stated that Perplexity, valued at tens of billions of dollars, should not exploit original content creators, suggesting that this case could have significant implications for the regulatory landscape surrounding AI content usage.
- Legal Context: This lawsuit follows similar actions from The New York Times and other media outlets against Perplexity, indicating a growing concern within the media industry regarding the legal boundaries of AI technologies using original content.
See More
CNN Sues Perplexity for Copyright Infringement
- Legal Action Intensifies: CNN filed a lawsuit against Perplexity on Thursday, alleging the AI search engine unlawfully distributes its copyrighted content, marking the latest legal battle between news publishers and AI firms, which could impact Perplexity's business model and reputation.
- Copyright Dispute Context: CNN's statement asserts that Perplexity, valued at tens of billions of dollars, should not steal from original content creators, reflecting the news industry's strong opposition to the use of AI technology, potentially triggering broader industry repercussions.
- Industry Response: Since the launch of OpenAI's ChatGPT, concerns among news publishers about their content being repurposed have intensified, prompting several news organizations to sign licensing agreements with major tech companies to ensure legal content use and fair compensation, which may alter future content distribution models.
- Future Outlook: CNN emphasizes that commercial operators must pay for high-quality news content, and if Perplexity continues to refuse reasonable licensing arrangements, it will face legal damages, a statement that may encourage other news organizations to take similar legal actions to protect their rights.
See More
Warner Bros. Discovery Secures $15 Billion Debt Financing Ahead of Paramount Sale
- Large Financing: Warner Bros. Discovery successfully priced $15 billion in investment-grade loans, comprising $13 billion and €1.72 billion (approximately $2 billion) in debt, indicating strong market support for its refinancing needs.
- Margin Details: The loans carry a margin of 2.5 percentage points above the benchmark and were issued at 99.75 cents, reflecting investor confidence in Warner Bros. despite market volatility.
- M&A Context: This financing is aimed at supporting Paramount's $110 billion acquisition of Warner Bros., which is expected to reshape the media landscape by merging two of Hollywood's largest legacy firms.
- Market Reaction: Warner Bros.' shares rose by 0.9% following the financing announcement, while Paramount's shares fell by 0.9%, indicating differing market expectations regarding the future integration of the two companies.
See More
Ulta Beauty Partners with Warner Bros for Supergirl Promotion
- Brand Partnership: Ulta Beauty has announced a collaboration with Warner Bros Pictures to feature ads for Supergirl across social media and in-store experiences, aiming to connect the brand with one of this year's biggest cultural moments and enhance its market presence.
- Product Promotion: Ulta will launch three Supergirl-inspired beauty looks, including Power Glam, Grunge Romance, and Iconic Shimmer, and promote them through an interactive buying guide on its website, thereby increasing consumer engagement and interest.
- Market Events: In celebration of the film's world premiere, Ulta will host events in New York City, Los Angeles, Dallas, and Chicago, further boosting brand visibility and attracting more customers to participate in the promotional activities.
- Advertising Campaign: Ulta will run promotional spots featuring Supergirl star Milly Alcock across cinemas, social media, cable TV, and streaming channels, aiming to enhance brand awareness and drive sales through a multi-channel marketing strategy.
See More
Paramount CEO Promises 30 Movies Annually Amid Merger Scrutiny
- Merger Commitment: Paramount CEO David Ellison assured DOJ officials that the combined Paramount-Warner Bros. Discovery entity would release at least 30 movies annually, despite skepticism from regulators and Hollywood critics regarding the feasibility of this promise.
- Regulatory Scrutiny: The $110 billion deal faces ongoing scrutiny from California regulators and Congressional Democrats, with 34 Democrats warning of potential job losses in Hollywood and fewer entertainment choices, urging California AG to closely examine the merger.
- Competitive Pressure: Paramount outbid Netflix to secure a definitive merger agreement with Warner Bros. Discovery at $31.00 per share, totaling $110 billion, demonstrating its commitment to building a competitive powerhouse in the entertainment industry, even as Netflix opted not to pursue the deal further.
- Market Sentiment: While Paramount Skydance's stock remained flat in premarket trading, retail sentiment has been 'extremely bullish' with high message volume on Stocktwits over the past 24 hours, despite the stock declining over 21% this year.
See More
