The Young and the Restless Recap Jan 16: Sally walks out on Billy, Jack gives Matt to Nick
In the Young and the Restless recap for Friday, January 16, 2026, Nick begs Jack to hand over Matt, Sally and Billy implode, and Michael and Diane compare notes.
The Young and the Restless Recap
At the Abbott mansion, Jack and Kyle talked about Victor and the way he’d thrown them out. Jack said that Diane went to meet Michael to try to find out what was going on.
Nick came over and told Jack that he was there to save his family; Jack was shocked he was out of the hospital after just having surgery.
Nick told Jack and Kyle that he wanted to ensure they had Matt secured somewhere. Jack said that he was, but Nick was adamant that Jack wasn’t taking it seriously enough. He demanded that Jack hand over Matt to him immediately.
Kyle explained the deal to Nick, and Jack confirmed that they wouldn’t release Matt before morning, per their offer to Victor. Nick pleaded to get first dibs on Matt and promised that Victor wasn’t thinking about Jabot.
Because of Nick’s comments, Jack asked if Cane and Phyllis turned the AI app against Victor. Nick exploded, saying that Matt could’ve escaped while they asked questions. Nick said Matt was a risk to everyone, from Sharon to Harrison.
Nick insisted Jack was putting people he cared about at risk by not handing over Matt. “I’m the one who’s going to put an end to this monster for good!” Nick hollered.
Jack tried to offer Nick some ibuprofen, and Kyle wanted to take him back to the hospital, where he belonged. Nick yelled at both of them that wasn’t what he needed: He wanted Matt given to him so he could put an end to the nightmare.
At Society, Michael admitted to Diane that Victor had bigger problems at the moment than attacking Jabot. Michael told Diane about the AI program attacking Newman Enterprises, so she told him about the deal Jack tried making with Victor about Matt Clark.
Diane didn’t think it was too surprising that Cane retaliated after what Victor did to him, but she had sympathy for neither of them. Diane and Michael agreed that Phyllis was involved.
Diane said that she was thrilled at the prospect of Victor getting revenge on Phyllis. She said that Phyllis might be Michael’s friend, but she was her enemy — and she was going to get her comeuppance once and for all.
At Crimson Lights, Sally was furious with Billy for lying to her about being all in at Abbott Communications. Billy asked if they could talk at home instead.
Once home, Billy told Sally that Cane and Phyllis had taken hold of Newman Enterprises and its subsidiaries. Sally couldn’t believe that Cane was offering Chancellor when they hadn’t even completed a takeover.
Billy didn’t understand what Sally was so upset about at this point, as he hadn’t accepted any offer. Sally said that Victor would be gunning for him if he took on Chancellor. Billy said the conflict was unavoidable because Victor always came after him. He didn’t think that was a deterrent for fulfilling his dreams.
Billy pointed out that if she ran Abbott Communications and he ran Chancellor, they’d become the power couple of Genoa City. Sally told him that it wouldn’t be about moving forward; it would be about payback yet again.
Billy tried telling Sally to keep personal issues separate from business decisions, but she insisted on relating everything back to Jill and Victor and his feuds and hurt feelings with both.
Sally said that Billy had told her several times that if he went after Chancellor, it would be to prove to Jill how wrong she was to sell it to Victor. “She was wrong, Sally,” Billy argued. He said Jill financed Abbott Comm anonymously because Sally played the mother-son card and pressured her into it.
Billy said there were many reasons for him to consider Cane’s offer that had nothing to do with the situations she was bringing up. Sally didn’t believe Cane cared about Billy and said accepting the offer would be the biggest mistake of his life.
Sally told Billy that if he took over Chancellor, it would hurt Jill’s feelings, but he got upset and told her he didn’t care how Jill took it. “She’s not interested in doing right by me!” Billy told him. Sally insisted he was wrong, but Billy told Sally that she was wrong where his mother was concerned.
“Look, I know you care about me, but you acting as the mother-son go-between is a way of trying to stop me from what I want,” Billy snapped. He reiterated that Jill shouldn’t factor into the conversation.
Sally snapped that Billy was going to do what he wanted to — no matter what anyone else thought, including her. Billy lowered the tone and spoke to her.
Billy said that he loved and respected Sally, and he wouldn’t even be considering the offer if not for the love and support she’d shown him the past year.
“You’re right. We should keep what’s personal separate from business. I have a media company to run. I can’t wait around waiting for you to decide, so I need to know right now if you’re going to leave me high and dry in a company that has your name in it,” Sally snapped.
Billy tried to tell her that he hadn’t made up his mind and hadn’t even had time to think. Sally interrupted to tell him how offended she was that her opinion meant nothing. She grabbed her purse and coat; before walking out, Sally told Billy, “Just so you know, if you go through with Cane’s offer, I’m not going to be happy.”
At the Abbott mansion, Jack and Kyle walked in the front door and took off their coats. They talked about how Nick made compelling arguments to hand over Matt, and they made the right choice. Kyle just hoped that Nick kept his word, and he would prevent Victor from attacking Jabot.
As Jack said that he still believed Victor could be under attack, Diane came in and triumphantly confirmed it. Jack wondered if Michael was lying to make them let their guard down.
Diane insisted Michael wouldn’t play that game with her. She couldn’t wait to get back to business as usual at Jabot, but Jack wanted to wait until it was safe.
Outside of Sharon’s, Nick stopped at a storage box to get rope and supplies before coming inside. As quietly as he could, he limped to the hutch in the dining room and took placemats out of the drawer, then left again.
Noah heard a noise from upstairs and ran down, asking who was there. He looked out the front door and then grabbed a coat and went outside.
Nick got to his car and opened the trunk, where a bound and gagged Matt lay inside. Noah ran up asking what he was doing. Nick ordered him back inside, but Noah insisted on looking in the trunk. He asked if Matt was dead.
Nick told Noah not to worry about it and to go back to the house before Sharon woke up. Noah asked how Nick even had Matt, so he told him he convinced the Abbotts to hand him over. Noah suggested going to the GCPD but Nick said Matt had escaped or beaten the rap too many times.
Noah grabbed Nick and looked him in the eye. He wanted to know what Nick intended to do with Matt.
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