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Trump says he ‘won’t be extorted’ as the shutdown is about to become the longest ever

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The government shutdown is poised to become the longest ever this week as the impasse between Democrats and Republicans has dragged into a new month. Millions of people could lose food aid benefits, health care subsidies are set to expire and there are few real talks between the parties over how to end it.

President Donald Trump said in an interview aired on Sunday that he “won’t be extorted” by Democrats who are demanding negotiations to extend the Affordable Care Act subsidies that expire at the end of the year for millions of Americans. Echoing congressional Republicans, the president said on CBS’ “60 Minutes” he’ll negotiate only when the government is reopened.

Trump’s comments signal the shutdown could drag on for some time as federal workers, including air traffic controllers, are set to miss additional paychecks and there’s uncertainty over whether 42 million Americans who receive federal food aid will be able to access the assistance. Senate Democrats have voted 13 times against reopening the government, insisting they need Trump and Republicans to negotiate with them first.

The president said Democrats “have lost their way” and predicted they’ll capitulate to Republicans.

“I think they have to,” Trump said. “And if they don’t vote, it’s their problem.”

He also reiterated his pleas to Republican leaders to change Senate rules and scrap the filibuster. Senate Republicans have repeatedly rejected that idea since Trump’s first term, arguing the rule requiring 60 votes to overcome any objections in the Senate is vital to the institution and has allowed them to stop Democratic policies when they’re in the minority.

“Republicans have to get tougher,” Trump told CBS. “If we end the filibuster, we can do exactly what we want.”

With the two parties at a standstill, the shutdown, now in its 33rd day and approaching its sixth week, appears likely to become the longest in history. The previous record was set in 2019, when Trump demanded Congress give him money for a U.S.-Mexico border wall.

A potentially decisive week

Trump’s push on the filibuster could prove a distraction for Senate Majority Leader John Thune, R-S.D., and Republican senators who’ve opted instead to stay the course as the consequences of the shutdown become more acute.

Republicans are hoping at least some Democrats will eventually give them the votes they need as moderates have been in weekslong talks with rank-and-file Republicans about potential compromises that could guarantee votes on health care in exchange for reopening the government. Republicans need five additional Democrats to pass their bill.

“We need five with a backbone to say we care more about the lives of the American people than about gaining some political leverage,” Thune said on the Senate floor as the Senate left Washington for the weekend on Thursday.

Virginia Sen. Tim Kaine, a Democrat, said on ABC’s “This Week” on Sunday there’s a group of people talking about ”a path to fix the health care debacle” and a commitment from Republicans not to fire more federal workers. But it’s unclear if those talks could produce a meaningful compromise.

Far apart on Obamacare subsidies

Trump said in the “60 Minutes” interview the Affordable Care Act — often known as Obamacare because it was signed and championed by then-President Barack Obama — is “terrible” and if the Democrats vote to reopen the government, “we will work on fixing the bad health care that we have right now.”

Democrats feel differently, arguing the marketplaces set up by the ACA are working as record numbers of Americans have signed up for the coverage. But they want to extend subsidies first enacted during the COVID-19 pandemic so premiums won’t go up for millions of people on Jan. 1.

“We want to sit down with Thune, with (House Speaker Mike) Johnson, with Trump, and negotiate a way to address this horrible health care crisis,” Senate Democratic leader Chuck Schumer said last week.

No appetite for bipartisanship

As Democrats have pushed Trump and Republicans to negotiate, Trump has showed little interest in doing so. He called for an end to the Senate filibuster after a trip to Asia while the government was shut down.

White House spokeswoman Karoline Leavitt said on “Sunday Morning Futures” on Fox News Channel the president has spoken directly to Thune and Johnson about the filibuster. But a spokesman for Thune said Friday that his position hasn’t changed, and Johnson said on Sunday that Republicans traditionally have resisted calling for an end to the filibuster because it protects them from “the worst impulses of the far-left Democrat Party.”

Trump said on “60 Minutes” he likes Thune but “I disagree with him on this point.”

The president has spent much of the shutdown mocking Democrats, posting videos of House Democratic leader Hakeem Jeffries in a Mexican sombrero. The White House website has a satirical “My Space” page for Democrats, a parody based on the social media site that was popular in the early 2000s. “We just love playing politics with people’s livelihoods,” the page reads.

Democrats have repeatedly said that they need Trump to get serious and weigh in. Virginia Sen. Mark Warner said that he hopes the shutdown could end “this week” because Trump is back in Washington.

Republicans “can’t move on anything without a Trump sign off,” Warner said on “Face the Nation” on CBS.

Record-breaking shutdown

The 35-day shutdown that lasted from December 2018 to January 2019 ended when Trump retreated from his demands over a border wall. That came amid intensifying delays at the nation’s airports and multiple missed paydays for hundreds of thousands of federal workers.

Transportation Secretary Sean Duffy said on ABC’s “This Week” that there have already been delays at several airports “and it’s only going to get worse.”

Many of the workers are “confronted with a decision,” he said. “Do I put food on my kids’ table, do I put gas in the car, do I pay my rent or do I go to work and not get paid?”

As flight delays around the country increased, New York City’s emergency management department posted on Sunday that Newark Airport was under a ground delay because of “staffing shortages in the control tower” and that they were limiting arrivals to the airport.

“The average delay is about 2 hours, and some flights are more than 3 hours late,” the account posted. “FAA planning notes show a possibility of a full ground stop later if staffing shortages or demand increases.”

SNAP crisis

Also in the crossfire are the 42 million Americans who receive SNAP benefits. The Department of Agriculture planned to withhold $8 billion needed for payments to the food program starting on Saturday until two federal judges ordered the administration to fund it.

House Democratic leader Jeffries, D-N.Y., accused Trump and Republicans of attempting to “weaponize hunger.” He said that the administration has managed to find ways for funding other priorities during the shutdown, but is slow-walking pushing out SNAP benefits despite the court orders.

“But somehow they can’t find money to make sure that Americans don’t go hungry,” Jeffries said in an appearance on CNN’s “State of the Union.”

Treasury Secretary Scott Bessent, in his own CNN appearance Sunday, said the administration continues to await direction from the courts.

“The best way for SNAP benefits to get paid is for Democrats — for five Democrats to cross the aisle and reopen the government,” Bessent said.

___

Associated Press writer Aamer Madhani contributed to this report.



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Google Cloud CEO lays out 3-part AI plan after identifying it as the ‘most problematic thing’

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The immense electricity needs of AI computing was flagged early on as a bottleneck, prompting Alphabet’s Google Cloud to plan for how to source energy and how to use it, according to Google Cloud CEO Thomas Kurian.

Speaking at the Fortune Brainstorm AI event in San Francisco on Monday, he pointed out that the company—a key enabler in the AI infrastructure landscape—has been working on AI since well before large language models came along and took the long view.

“We also knew that the the most problematic thing that was going to happen was going to be energy, because energy and data centers were going to become a bottleneck alongside chips,” Kurian told Fortune’sAndrew Nusca. “So we designed our machines to be super efficient.”

The International Energy Agency has estimated that some AI-focused data centers consume as much electricity as 100,000 homes, and some of the largest facilities under construction could even use 20 times that amount.

At the same time, worldwide data center capacity will increase by 46% over the next two years, equivalent to a jump of almost 21,000 megawatts, according to real estate consultancy Knight Frank.  

At the Brainstorm event, Kurian laid out Google Cloud’s three-pronged approach to ensuring that there will be enough energy to meet all that demand.

First, the company seeks to be as diversified as possible in the kinds of energy that power AI computation. While many people say any form of energy can be used, that’s actually not true, he said.

“If you’re running a cluster for training and you bring it up and you start running a training job, the spike that you have with that computation draws so much energy that you can’t handle that from some forms of energy production,” Kurian explained.

The second part of Google Cloud’s strategy is being as efficient as possible, including how it reuses energy within data centers, he added.

In fact, the company uses AI in its control systems to monitor thermodynamic exchanges necessary in harnessing the energy that has already been brought into data centers.

And third, Google Cloud is working on “some new fundamental technologies to actually create energy in new forms,” Kurian said without elaborating further.

Earlier on Monday, utility company NextEra Energy and Google Cloud said they are expanding their partnership and will develop new U.S. data center campuses that will include with new power plants as well.

Tech leaders have warned that energy supply is critical to AI development alongside innovations in chips and improved language models.

The ability to build data centers is another potential chokepoint as well. Nvidia CEO Jensen Huang recently pointed out China’s advantage on that front compared to the U.S.

“If you want to build a data center here in the United States, from breaking ground to standing up an AI supercomputer is probably about three years,” he said at the Center for Strategic and International Studies in late November. “They can build a hospital in a weekend.”



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Pepsi to cut product offering nearly 20% in deal with $4 billion activist Elliott

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PepsiCo plans to cut prices and eliminate some of its products under a deal with an activist investor announced Monday.

The Purchase, New York-based company, which makes Cheetos, Tostitos and other Frito-Lay products as well as beverages, said it will cut nearly 20% of its product offerings by early next year. PepsiCo said it will use the savings to invest in marketing and improved value for consumers. It didn’t disclose which products or how much it would cut prices.

PepsiCo said it also plans to accelerate the introduction of new offerings with simpler and more functional ingredients, including Doritos Protein and Simply NKD Cheetos and Doritos, which contain no artificial flavors or colors. The company also recently introduced a prebiotic version of its signature cola.

PepsiCo is making the changes after prodding from Elliott Investment Management, which took a $4 billion stake in the company in September. In a letter to PepsiCo’s board, Elliott said the company is being hurt by a lack of strategic clarity, decelerating growth and eroding profitability in its North American food and beverage businesses.

In a joint statement with PepsiCo Monday, Elliott Partner Marc Steinberg said the firm is confident that PepsiCo can create value for shareholders as it executes on its new plan.

“We appreciate our collaborative engagement with PepsiCo’s management team and the urgency they have demonstrated,” Steinberg said. “We believe the plan announced today to invest in affordability, accelerate innovation and aggressively reduce costs will drive greater revenue and profit growth.”

Elliott said it plans to continue working closely with the company.

PepsiCo shares were flat in after-hours trading Monday.

PepsiCo said it expects organic revenue to grow between 2% and 4% in 2026. The company’s organic revenue rose 1.5%. the first nine months of this year.

PepsiCo also said it plans to review its supply chain and continue to make changes to its board, with a focus on global leaders who can help it reach its growth and profitability goals.

“We feel encouraged about the actions and initiatives we are implementing with urgency to improve both marketplace and financial performance,” PepsiCo Chairman and CEO Ramon Laguarta said in a statement.

PepsiCo said in February that years of double-digit price increases and changing customer preferences have weakened demand for its drinks and snacks. In July, the company said it was trying to combat perceptions that its products are too expensive by expanding distribution of value brands like Chester’s and Santitas.



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Paramount rips Warner’s sale ‘process’ as it reveals 2-year-long pursuit and escalating bids before going hostile

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Paramount Skydance’s tender offer for Warner Bros. Discovery emerged from months of fitful courtship, a shifting media landscape, and a high‑stakes bidding war that ultimately pitted the studio behind “Top Gun: Maverick” against streaming giant Netflix for control of one of Hollywood’s crown jewels. The company’s tender offer regulatory filing with the Securities and Exchange Commission, filed hours after Paramount launched a hostile bid worth $108 billion (or $77.9 billion in equity), laid out a detailed chronology in which Paramount repeatedly tried to lure Warner Bros., to no avail. Netflix and Warner Bros. agreed a deal worth nearly $83 billion ($72 billion in equity) on Friday.

The filing revealed Paramount CEO’s last-ditch text message to WBD counterpart David Zaslav at roughly 4pm ET on December 4, the day before Netflix ultimately announced its deal, as previously reported by the Financial Times. Daivd [sic], I appreciate you’re underwater today so I wanted to send you a quick text. Please note when you next meet as a board we wanted to offer you a package that addressed all of the issues you discussed we [sic] me,” David Ellison wrote as he apparently felt his target slipping away.

“Also please know despite the noise of the last 24 hours I have nothing but respect and admiration for you and the company,” Ellison added. “It would be the honor of a lifetime to be your partner and to be the owner of these iconic assets. If we have the privilege to work together you will see that my father and I are the people you had dinner with. We are always loyal and honorable to our partners and hope we have the opportunity to prove that to you. Best, David.” Later that day, Paramount sent Zaslav a letter criticizing a “tainted” sale process.

Paramount told investors today that it continued to believe it was never taken seriously. “During the entirety of the sale ‘process’ undertaken by the Warner Bros. Board, representatives of Warner Bros. did not provide a single markup of a single transaction document, have a single meeting to go page-by-page through the documents, or engage in a ‘real time’ back-and-forth negotiation with Paramount or its advisors.”

Early outreach in 2023

In 2023 and 2024, Paramount’s predecessor, Paramount Global, and Warner Bros. held intermittent talks about a possible merger, but those conversations ended without a deal as Paramount Global moved instead to merge with Skydance, under the control of current CEO Ellison. After that transaction closed in August 2025, Paramount’s new leadership revisited the idea of combining with Warner Bros., concluding that a tie‑up could create a stronger, scaled competitor to streaming platforms and big technology companies, according to the SEC filing.​

The urgency increased in June 2025 when Warner Bros. publicly unveiled plans to split itself in two, targeting completion by mid‑2026, a strategy it continued to defend through early autumn. Paramount believed this breakup would destroy value and make any future full-company acquisition far harder, so it decided to move quickly, seeing a narrow window to buy all of Warner Bros. before the separation took effect.​

Paramount’s escalating proposals

By early September 2025, the filing noted, media reports surfaced that Paramount was preparing an offer, helping push Warner Bros.’ share price sharply higher from a pre‑rumor closing price of $12.54—it was trading at $19.46 by September 15, the day after Paramount offered $19 per share in cash and stock.​ (The New York Times reported on the secret bids from Paramount in October.)

Warner Bros. rejected that approach within days, saying the bid undervalued the company and that its own breakup plan promised better long‑term value. Paramount responded on September 30 with an improved offer worth $22 a share, primarily in cash, and went further on deal protections, including a $2 billion termination fee and a commitment to litigate to secure antitrust clearance, while also dangling roles for Zaslav as co-CEO and co-Chairman of the board of the combined company.​

Warner Bros. rebuffed this proposal as well, again calling it inadequate and insisting its planned separation remained superior, a stance that only hardened Paramount’s view that the board was underestimating the industrial logic of a combination. In October, Warner Bros. publicly announced a wider review of “strategic alternatives,” signaling that it would run a formal sale process and had received interest from multiple parties in both the whole company and specific assets such as its streaming arm.​

Paramount attempted to enter that process on more favorable terms, pushing back on an initial Warner Bros. confidentiality agreement that included a lengthy standstill, tight controls on financing contacts and waivers of potential legal claims about the sale. Its advisers negotiated for a shorter standstill, “most‑favored‑nation” treatment versus other bidders, and freedom to challenge the process if Warner Bros. ultimately retreated to its separation plan, underscoring deep mistrust over how the auction might be run.​

Due diligence and financing ramp-up

As the process unfolded, Paramount was granted limited access to a virtual data room, which it viewed as “sparsely populated” given the size and complexity of a potential deal. In mid‑November, Warner Bros. hosted an in‑person management presentation in California, while antitrust lawyers for both sides met to assess regulatory risks and lay out arguments that a Paramount–Warner Bros. merger would be pro‑competitive in a market dominated by tech‑backed streaming giants.​

Parallel to those talks, Paramount’s board set up a special committee of independent directors to vet a large equity infusion from the Ellison family and private‑equity firm RedBird. Paramount also locked in a $54 billion senior secured bridge facility led by Wall Street banks.

A bidding war with Netflix

On November 20, Paramount submitted another improved proposal, lifting its implied offer to $25.50 a share, heavily weighted to cash and backed by signed debt commitments and promised equity. That bid included a $5 billion regulatory reverse breakup fee and more aggressive litigation undertakings, signaling Paramount’s willingness to fight regulators if required to close the transaction.​ (Netflix committed to a $5.8 billion breakup fee in its winning bid, which Bloomberg reported is among the highest of all time.)

Even as Paramount sweetened its terms, public commentary suggested some influential Warner Bros. figures saw Netflix as a more attractive partner, particularly for its pure‑play streaming focus and global reach. During a particular November 13 interview on CNBC, WBD chairman emeritus John Malone questioned Paramount’s intervention and discussed the merits of a Netflix deal, adding to market speculation that Warner Bros. leadership might prefer a streaming‑first tie‑up over a legacy‑studio merger.​

Netflix deal and Paramount’s pivot to a tender

The process culminated on December 4, 2025, when Warner Bros. signed a merger agreement with Netflix that would see Netflix acquire Warner Bros.’ streaming businesses after a complicated internal reorganization and spin‑off of other assets. That deal offered cash and Netflix stock with headline value of about $27.75 per share but included adjustments tied to spin‑off net debt and a 21‑month outer closing date.​

Paramount responded the same day with what it calls its “Prior Proposal,” a merger agreement valuing Warner Bros. at $30 a share in straight cash, with what it argues are stronger regulatory commitments, a shorter outside date and no price haircut tied to balance‑sheet mechanics. When Warner Bros. nevertheless chose the Netflix deal, Paramount concluded that the board had opted for an “obviously financially inferior transaction with extraordinary regulatory risk and a longer timeline to a possible closing,” and decided its only route was to go directly to shareholders.​

Calls to Paramount, WBD, and Netflix to comment on the events as laid out in the filing were not immediately returned. We will update this post with any response.

Editor’s note: the author worked for Netflix from June 2024 through July 2025.

For this story, Fortune journalists used generative AI as a research tool. An editor verified the accuracy of the information before publishing.



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