Good morning. Today, a brand tries to maximize AI without losing its human touch; the Ellisons aren’t done building their media giant; the Trump administration stops short of the worst case for drug and ad execs.

Payments provider Klarna once sought the likes of Paris Hilton and A$AP Rocky for flashy ad campaigns, but the company these days makes a far more understated pitch, Megan Graham reports for CMO Today.

Klarna went from an unknown to “becoming more of a household brand,” CMO David Sandstrom said, citing deals with companies from Apple to Walmart. “Our marketing has shifted away from attention-seeking, more into positioning Klarna and our services as a utility.”

Klarna is also in the trenches with AI, recently saying it had overrelied on AI for some customer-service functions. It has addressed that issue, according to Sandstrom, but there’s a bigger question.

“The thing we’re wrestling with—I’m being fully transparent here—is that we want to build a human bank, a bank that feels human, acts human, behaves human,” he said. “If we pivot completely toward AI, how do we keep that brand promise?”

Read the full Q&A here.

The newly merged Paramount Skydance is preparing a bid to buy Warner Bros. Discovery backed by the Ellison family, Jessica Toonkel reports in a blockbuster scoop.

The bid will be for the entire company, including its cable networks and movie studio, people familiar with the situation said. Warner said late last year it planned to restructure into two operating divisions, one focused on the legacy cable-television business and the other on streaming and studios.

If successful, such a deal would bring together two of Hollywood’s most storied studios and the parent companies of streaming services HBO Max and Paramount+.

Warner is home to “Barbie,” DC Comics, Harry Potter and TV shows such as “The White Lotus,” as well as cable networks CNN, TBS and TNT.

Skydance, run by David Ellison, the son of billionaire Larry Ellison, weeks ago closed its deal to merge with Paramount, which owns Nickelodeon, MTV, Comedy Central and its movie studio.

The pharmaceutical, advertising and media industries are facing some pain as the Trump administration cracks down on their lucrative work together, but executives seem confident they won’t fall seriously ill, Suzanne Vranica and Joseph Walker write. Not soon, anyway.

The government plans to end a policy allowing abbreviated descriptions of side effects in broadcast ads, a rule that fueled the boom in TV drug ads.

Drugmakers might shrink from TV if they have to list more side effects, making ads longer and more expensive. But first they would seek help.

“This is expected to continue to drive a lot of noise in our industry,” ad giant WPP said in a note to its pharmaceutical clients on Wednesday. “Past efforts to restrict [direct-to-consumer ads] have been blocked by courts on the grounds that they violate free speech and First Amendment rights.”

You tell me: Is this the end for pharmaceutical commercials running wild on TV, or will drug advertisers look back on this moment and laugh?

Hit reply with your prediction and I’ll quote from the responses. Direct replies only, please—no notes ghost-written by PR reps.

Coke shed bottling and poured money into marketing. Unless Pepsi slims down, the gap between the two will continue to widen. [WSJ] 

Nascar hired 72andSunny to help reintroduce its brand. [Adweek] 

Brands are still spending on advertising, and still anxious about it. [Digiday] 

McDonald’s added protections against scalping for its latest Happy Meal in Japan after chaos surrounded its Pokémon promotion in August. [BI] 

The costs of back-to-school are ballooning as teens drop hundreds of dollars on haul videos. [WSJ]

BuzzFeed is relaunching its flagship YouTube channel as it continues to pursue a business overhaul. [WSJ] 

News startup Puck has agreed to acquire Graydon Carter’s Air Mail newsletter. [Breaker]

Hillary Taymour, founder and creative director of indie fashion label Collina Strada, will deliver business lessons on OnlyFans. [Glossy]

A24, the movie studio behind “Everything Everywhere All At Once” and “Midsommar,” started a record label. [Vulture]