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Perplexity CEO Aravind Srinivas
(Photo: Yoshio Tsunoda / Shutterstock)
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Perplexity sued by Dow Jones & New York Post

Publishers say the AI startup’s “Skip the Links” promise uses their copyrighted work.

Jon Keegan

Last week, The New York Times sent a cease and desist notice to AI startup Perplexity, telling the company to stop including the newspaper’s content in its AI powered search bot results.

Now the parent companies of The Wall Street Journal and the New York Post are coming for Perplexity.

Today, News Corp units Dow Jones & Company and NYP Holdings, Inc. together sued Perplexity for violating their copyright. The complaint filed in US District Court’s Southern District of New York accused the company of “massive freeriding” on the publications’ protected content. The suit said that Perplexity is scraping and storing WSJ and New York Post content and reproducing it verbatim.

“Perplexity accesses and copies, without authorization or remuneration, vast numbers of webpages containing copyrighted material, including from Plaintiffs’ webpages and third-party webpages containing Plaintiffs’ licensed copyrighted works,” wrote the plaintiffs.

Perplexity’s AI-powered chat bot responds to user queries with answers accompanied by citations linking back to the source information, and has been accused of ignoring websites’ robots.txt files, which tell automated crawlers if they are allowed to index and scrape that site’s content. As the lawsuit complaint notes, Perplexity allows users to “Skip the Links” when performing web searches.

The complaint notes, “This suit is brought by news publishers who seek redress for Perplexity’s brazen scheme to compete for readers while simultaneously freeriding on the valuable content the publishers produce.”

Meanwhile, the company is fundraising at a blistering pace, and is working to raise $500 million as it positions itself as a replacement for the search engine.

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Netflix is down amid reports it’s leading the Warner Bros. bidding war as Paramount cries foul

Netflix’s charm offensive appears to be working.

Netflix is reportedly emerging as the leader in the bidding war for Warner Bros. Discovery after second-round bids this week, edging out entertainment juggernaut rivals Comcast and Paramount Skydance.

Investors don’t appear psyched by the streaming leader’s turn of fortune: the stock is down on Thursday morning, a day after closing down nearly 5% following reports that scooping up HBO Max wouldn’t necessarily result in a big market share boost.

Paramount, which has reportedly made five bids for Warner Bros. Discovery, doesn’t love the current state of play, either. The company sent WBD a letter questioning the “fairness and adequacy” of the process, highlighting reports that WBD’s board favors Netflix and is resisting Paramount.

Any offer would be subject to regulatory approval — a fact that may have weighed against Netflix’s offer given that cofounder Reed Hastings’ politics are vocally to the left, very much at odds with the current regulatory regime. Paramount seems confident in its ability to get approval, reportedly boosting its breakup fee to $5 billion should its potential acquisition fall apart in the regulatory process.

Investors don’t appear psyched by the streaming leader’s turn of fortune: the stock is down on Thursday morning, a day after closing down nearly 5% following reports that scooping up HBO Max wouldn’t necessarily result in a big market share boost.

Paramount, which has reportedly made five bids for Warner Bros. Discovery, doesn’t love the current state of play, either. The company sent WBD a letter questioning the “fairness and adequacy” of the process, highlighting reports that WBD’s board favors Netflix and is resisting Paramount.

Any offer would be subject to regulatory approval — a fact that may have weighed against Netflix’s offer given that cofounder Reed Hastings’ politics are vocally to the left, very much at odds with the current regulatory regime. Paramount seems confident in its ability to get approval, reportedly boosting its breakup fee to $5 billion should its potential acquisition fall apart in the regulatory process.

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Delta says the government shutdown will cost it $200 million in Q4

The 43-day government shutdown that ended last month will result in a $200 million ding for Delta Air Lines, the airline said in a filing on Wednesday.

That’s about $100,000 per shutdown-related canceled flight. (Delta previously said it canceled more than 2,000 flights due to FAA flight reductions.) When the company reports its fourth-quarter earnings, the shutdown will lop off about $0.25 per share.

Delta initially stayed calm about the shutdown, with CEO Ed Bastian stating in early October that the company was running smoothly and hadn’t seen any impacts at all. One historically long shutdown later, Delta wasn’t able to remain untouched.

The skies have since cleared, though, and Delta’s filing states that booking growth has “returned to initial expectations following a temporary softening in November.”

Delta’s shares were up over 2% as of Wednesday’s market open.

Delta initially stayed calm about the shutdown, with CEO Ed Bastian stating in early October that the company was running smoothly and hadn’t seen any impacts at all. One historically long shutdown later, Delta wasn’t able to remain untouched.

The skies have since cleared, though, and Delta’s filing states that booking growth has “returned to initial expectations following a temporary softening in November.”

Delta’s shares were up over 2% as of Wednesday’s market open.

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