Media and Telecom Sector

Trump Media terminated a $6.42 billion digital asset treasury deal with Crypto.com and Yorkville Acquisition Corp. on Friday, citing "prevailing market conditions and shifting business and stakeholder priorities." The proposed Trump Media Group CRO Strategy would have accumulated Crypto.com's native CRO token and generated returns through staking; instead, the company is refocusing on its core Truth Social platform, data licensing, and a pending merger with fusion energy company TAE. Interim CEO Kevin McGurn told Axios the decision was driven by saturation in the digital asset treasury sector—a crowded market that emerged after companies copied MicroStrategy's Bitcoin treasury playbook in 2025—rather than regulatory pressure from the Trump administration. Trump Media separately scaled back plans to embed prediction markets directly into Truth Social; the companies will now pursue a marketing arrangement promoting Crypto.com's prediction products to Truth Social users instead. McGurn noted that Truth Social's API business, which sells platform data to high-frequency trading firms and AI developers, has grown to 10 customers from five, suggesting the company sees more value in distribution and data licensing than in operating financial products itself. The termination does not affect Trump Media's existing CRO holdings—the company purchased approximately $105 million of CRO in September 2025 as part of a separate strategic partnership, and those balance sheet positions remain unchanged. CRO fell sharply following the announcement. McGurn expects the TAE merger to close before year-end.

Paramount Skydance generated $6.91 billion in second-quarter revenue, narrowly beating consensus estimates of $6.88 billion while net profit plunged to $41 million against expectations of $109 million. Higher streaming and studio licensing sales offset a steep drop in traditional broadcasting. Streaming revenue expanded 9% to nearly $2.5 billion as Paramount+ added 2 million subscribers to hit 81.6 million total users, bolstered by the "Yellowstone" sequel "Dutton Ranch" and live broadcasts like the FIFA World Cup. Studio sales generated $1.3 billion, but television revenue dropped 9% to $3.1 billion across broadcaster CBS and cable channels like Comedy Central. Meanwhile, a California federal judge scheduled a March antitrust trial for a lawsuit brought by a dozen states seeking to block Paramount's planned $110 billion acquisition of Warner Bros. Discovery. Paramount agreed to pause the transaction until June 2027 while awaiting a judicial ruling. Delaying the transaction past September 30 triggers ticking fees of $7 million per day, which could total $1.7 billion if the closing stretches to June 2027.

A national Reuters/Ipsos survey of 4,505 U.S. adults found that 61% favor stricter government oversight of social media companies, channelnewsasia.com reports. Public pressure is concentrating on youth safety, with 66% supporting mandated age-verification tools to block users under 16 from accessing platforms. These poll results coincide with rising legal and financial exposure for Big Tech. State prosecutors allege Meta Platforms designed its apps to addict minors, leaving the company facing up to $1.4 trillion in cumulative statutory penalties if states prevail at trial. Separately, a New Mexico state court ordered Meta to pay $567 million into a teen mental health fund and alter platform features for young users. NetChoice, an industry group backed by Meta, TikTok, and Snap, is fighting age-verification laws in court on First Amendment grounds. Over 85% of survey respondents view social media as addictive and harmful to youth mental health. Despite political divides, 74% of Republicans and 69% of Democrats back age-verification rules.