Daniel Confronts Phyllis for Going Behind His Back — and Sally Hides a Disappointment From Nick

At Crimson Lights, Tucker approaches Daniel, who says, “I heard you were back in town.” Tucker finds the timing of their run-in ideal — he’s heard about his new gaming venture and had an interesting conversation with his mom about it. “I did gather that you’re looking for a new backer.” He wants to make him a pitch.

At Newman Media, Nate and Audra compliment each other on a deal. Audra appreciates him giving her a chance. Nate has a meeting he wants her to sit in on — Daniel Romalotti has a new gaming platform. Phyllis arrives and Nate makes introductions before explaining that Daniel’s mother set up the meeting. Phyllis wants to proceed, but Nate wants to wait for her son — he was expecting to hear his pitch directly.

At Society, Lily wraps up a work call as Billy comes in and helps her on with her coat. She thanks him and he recalls there was a time that his job was to make her day run smoothly.

In Los Angeles, Sally is on the phone with Chloe and complains about coming all the way there to meet with Jill, only to have her cancel on them. “Who does that?!?” She informs her partner she’s going to stay in LA for a little while. Maybe she’ll change her mind or she’ll just barge into her office and give her a piece of her mind.

Sally hangs up and thinks about Nick finding out she’s pregnant. She sighs and sits down. She’s contemplating dialing her phone when it rings. It’s Nick, who wanted to let her know he was thinking about her. She smiles.

At the Abbott house, Diane sips a tea and smiles as she thinks about making love with Jack. He appears and asks what she’s smiling about. She bets he can guess. They canoodle and Summer and Kyle come down the stairs. Summer notices Diane’s there awfully early. Jack says she spent the night… again. “There’s something the two of you should know.” Kyle hopes it’s good news. Jack declares that his relationship with Diane has taken a turn, “Romantically speaking.”

In Los Angeles, Sally laughs at Nick’s joke over the phone. He asks about her morning sickness and she says she’s doing better than last week. Nick assures her she’ll kill her meeting with Jill. Sally’s just a little distracted and is sure he must be too. Nick admits it’s been on his mind. She apologizes for dropping the news and then leaving. Nick checks in on her eating habits and vitamin-taking before circling back to her meeting with Jill.

At Newman Media, Phyllis tells Nate and Audra she’s there to gauge interest and if this goes well, she’ll set up a meeting with Daniel. Nate agrees, so she launches into her pitch about the game. Nate senses her motherly pride. Phyllis reminds him she’s also a gamer. Audra assumes that other corporations are interested and asks if she’s trying to start a bidding war. Phyllis explains that usually when there’s a lot of interest, it becomes a hot commodity. She wanted to make sure they wanted in on the ground floor. Nate needs to have further discussions with Daniel. Audra concurs. Phyllis will set up a meeting with her son and thanks them for their time. Once alone, Nate senses Audra’s reluctance.

In Crimson Lights, Tucker prods Daniel to tell him what he’s looking for. Daniel is seeking deep pockets and creative control. Tucker replies, “Of course.” Daniel invites McCall to dazzle him with an offer. Tucker tells Daniel that Chancellor-Winters and Newman Media are both a bad fit for his project if he’s after creative control. He knows how the Newmans work and knows Jill very well — he won’t have autonomy there. Tucker understands how he feels about the platform. His spiritual soul was reborn in an Ashram, so he can get behind Daniel’s project, especially if it’s lucrative. He brings up Heather and Lucy living in Portugal. Daniel isn’t sure how he knows that but informs him he’s looking for a corporate partner who doesn’t pry.

In Los Angeles, Sally tells Nick by phone that if she and Chloe make a deal with Jill, she might have to move out there. “How would you feel about that?” she asks. Nick thinks the bigger question is whether she could live there again. Sally feels it might be the best thing for her professionally. Nick tells her if that’s the case, they’ll make it work. “Let’s not get ahead of ourselves. You and Chloe still have to make your pitch and we’ll take it from there.” Sally assures him she feels that she belongs in Genoa City, “With you.” Nick smiles on the other end.

At Society, Lily misses talking shop with Billy but can’t share too much. Billy always admired her integrity. He misses running his ideas by her too and asks if she wants to grab coffee. Lily declines as she has a crazy day ahead of her but assures him nothing she’s going through at work right now is because of him. She hopes he finds what he’s looking for.

In the Abbott living room, Diane asks Kyle how he feels about her and Jack. Kyle says they saw them growing closer. Diane assures him it was not her intention; she never expected Jack to forgive her for the past, but she’s beyond grateful he was able to appreciate the changes she’s made in her life. Jack doesn’t want Diane to feel she has to sneak around. “She’s every bit as welcome here as you are.” Summer rolls her eyes. Jack continues, “She’s family.” Kyle isn’t fully ready to embrace the idea of them getting back together, but they seem happy. Jack confirms they’re very happy. Diane smiles. Summer reminds Kyle they have a breakfast meeting, and they exit. Diane tells Jack, “I don’t think Kyle was very pleased at all.”

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At Newman Media, Audra tells Nate that Daniel already had his platform set up at Chancellor-Winters. It doesn’t make any sense why Phyllis would come to them unless they’re trying to inflate their offer. Nate wonders if things are in flux at Chancellor-Winters. Audra senses that Phyllis is a loose cannon but she’s sure they can get to the bottom of this.

At Crimson Lights, Tucker tells Daniel he’s learned it’s impossible to separate the professional from the personal. Given his situation there’s bound to be some sadness that will affect his decision-making. He also knows that the pain can be a strong motivator to set things right. Lily walks in as Tucker tells Daniel he can tell this venture is about doing something meaningful for him and his family. “I would love to help you achieve that goal.” Lily stalks up and informs Tucker that Daniel is actually under a contract, “With me.”

At Society, Summer tells Kyle her mom was right about Diane setting her sights on Jack all along. Kyle balks and she assures him that his mother came back for him. Kyle just can’t root for this reunion given their history. Summer understands. Kyle fears that if things fall apart his dad will be devastated. He feels perhaps it was inevitable but it’s too fast. Summer thinks the adrenaline of bringing down Stark may have escalated things.

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Billy walks up to Summer and Kyle and asks about Jeremy Stark’s arrest. Kyle reports that he stole a necklace from Nikki and Victor’s place in Chicago. Billy thinks it’s odd that a high-stakes money-launderer would get busted stealing. He takes off and Kyle and Summer exchange a look.

At Crimson Lights, Tucker tells Lily that her IPO issues are holding things up for Daniel. Does she expect him to hang around while she sorts out her problems? Lily reminds him he’s actually responsible for their snags by planting Audra in the company. She implores Daniel not to trust Tucker, who betrayed his own son. Tucker shrugs that there are two sides to ever story in family conflict. He asks Daniel to consider what he said and takes off. Lily informs Daniel that dissolving their contract to go with Tucker would be a huge mistake.

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Daniel doesn’t want to back out of his deal with Lily but the delay is making him nervous. He relays that his mother put the bug in Tucker’s ear and that’s why he approached him. Lily wants to make the gaming platform happen for him but she can’t move forward with new projects until they sort out the IPO. Daniel informs her that’s what’s making him nervous. Lily asks him to give her one week — if she can’t commit by then she’ll let him out of his contract.

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At the Abbott mansion, Diane gets the feeling Kyle fears she will hurt Jack again. Jack wouldn’t be standing there if he believed that. Diane knows what it’s like to lose him and Kyle, and to be alone. She’ll never put herself at risk for that again. They kiss passionately.

At the Grand Phoenix, Tucker tells Phyllis he talked to Daniel, who saw the wisdom of partnering with him. She reminds him she told him to stay away from her son — neither of them want anything to do with him. Tucker reminds her it’s Daniel’s project. “You’re just along for the ride.” Phyllis fumes.

At Crimson Lights, Nate and Audra walk in and Lily scoffs at the woman landing a job with Nate. “Clearly the company you work for has questionable business ethics.” Nate addresses Daniel and says he liked what he heard from Phyllis about his new gaming venture. Lily’s jaw drops. Nate says he’s eager to hear from Daniel directly. Lily snaps at Daniel, who explains he had nothing to do with a meeting at Newman Media — his mother acted on her own and prematurely. Audra tells Nate, “I thought something seemed off.” Daniel apologizes for his mother wasting their time. He dons his coat and tells Lily he’ll check in with her later.

At Society, Kyle worries that no one is buying the story of Stark stealing Nikki’s necklace. Maybe if Summer hadn’t insisted he stay out of it, he could have helped his parents come up with a better solution. Summer thinks he should be thanking her for keeping him out of it. Kyle just wants to put it in the past. Summer agrees — no more family plotting. She wants to hear that Kyle turned Victor down.

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In Los Angeles, Sally listens to Nick giving her a pep talk about her meeting with Jill over the phone. She tells him he’s put her back on the right track and thanks him. “I’m really lucky to have you in my life. The baby is really lucky to have you too. I’ll be home soon.” After she disconnects, Sally flashes to having sex with Adam and sighs.

In bed, Jack tells Diane he could stay there forever. She concurs. He asks if she’s still worried about Kyle. She can’t help it. Jack’s sure he’ll come around and vows to be by Diane’s side making sure their son knows how happy they are. They kiss.

At Society, Kyle insists to his wife that Victor just wants help giving Adam a little push out of Jabot. He feels he’s in the driver’s seat. Summer is afraid his hatred for Adam is his motivation and warns of the risk to his relationship with his father. Colluding with her grandfather isn’t likely to end well. Just then, Kyle gets a text from Victor wanting to meet. Summer asks, “What’s up?” Kyle tells her, “Nothing important.”

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Phyllis opens her suite door to Daniel, who informs her she knows what she did. He appreciates that she was trying to help, but she needs to stay out of this. They aren’t partners and once again he’s questioning why he hired her.

At Crimson Lights, Lily watches as Billy comes in and tells Nate, “Boy, was I wrong about you.” He confronts him about backstabbing his family and then hiring Audra. “I gave you far too much credit.” He glances at Lily as he continues on his way.

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Next on The Young and the Restless: Victoria pushes Tucker’s buttons, Billy makes a confession to Chelsea, and Victor concocts a strategy to expand his empire.

Don’t miss our updated look at Young & Restless stars’ real-life partners in the gallery below.

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