Media News Daily: Top Stories for 06/01/2025

This page hosts daily news stories about the media, social media, and the journalism industry. Get the latest Hirings and Firings, Media Transactions, Controversies, and more.


PBS Sues Trump Administration Over Federal Defunding Order

PBS has filed a lawsuit against the Trump administration in response to an executive order issued on May 1 that seeks to defund the Corporation for Public Broadcasting (CPB) and cease support for NPR and PBS. The order claims the outlets promote biased coverage and no longer serve a necessary public role. PBS argues this directive violates the First Amendment and the Public Broadcasting Act of 1967. In court filings, PBS described the move as an “unprecedented presidential directive” that threatens the future of public television. CEO Paula Kerger emphasized the necessity of legal action to protect PBS’s editorial independence. NPR also filed a similar lawsuit earlier in the month. Read More (Washington Examiner Rating)


Telegram to Integrate xAI’s Grok Chatbot in Major AI Partnership

Telegram has entered a one-year partnership with Elon Musk’s xAI to integrate its Grok chatbot across its platform, reaching over a billion users. The deal, announced by CEO Pavel Durov, includes $300 million in cash and equity to Telegram and a revenue-sharing model on Grok subscriptions. Grok will be accessible for generating summaries, moderating chats, creating avatars and stickers, and assisting businesses. However, concerns remain over Grok’s misinformation issues and Telegram’s evolving data-sharing policies. Read More (Social Media Today Rating)


Business Insider Lays Off 21% of Staff, Shifts Strategy to AI Integration

Business Insider announced a major restructuring, laying off 21% of its workforce as it transitions toward an AI-centric business model. CEO Barbara Peng cited pressure from volatile traffic trends and evolving media consumption as the primary drivers. The company plans to scale back traffic-dependent content areas and launch a live journalism platform, BI Live. The Insider Union criticized the move, calling it a “pivot away from journalism toward greed.” Business Insider is also pushing for full employee adoption of Enterprise ChatGPT. Read More (Nieman Lab Rating)


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