The Young and the Restless Recap, January 16: Nick convinces Jack to hand over Matt Clark

On the January 16, 2026, episode of The Young and the Restless, Sally and Billy fought over Cane's offer, Diane pumped Michael for information, and Jack decided to return Matt Clark back to Nick.

What happened on The Young and the Restless

The Young and the Restless' Sally worries about Billy's Chancellor obsession | Image: CBS

Sally forced Billy to be upfront and honest about his meeting with Cane. He confessed that Cane offered him Chancellor, with no strings attached. Sally couldn't believe it, but Billy assured her that it was real.

Sally questioned how Cane managed to get his hands on Chancellor. Billy didn't want to discuss it in public, but Sally wanted to stay put at Crimson Lights. Billy promised that he had just found out about it, assuring her that he didn't keep anything from her.

Sally reminded Billy that they recently launched Abbott Communications, and his behavior made her question his commitment to their new company. Billy downplayed her statement, but that's how Sally felt. She stormed away from the table, running down the reason why she can't trust Billy.

Sally told Billy that he was lying about himself, their relationship, and why they were together in the first place. Ultimately, Sally and Billy returned home so they could continue the conversation in private. Sally got Billy to admit that she wasn't overreacting and that her feelings mattered to him.

Billy sat Sally down on the couch, and he hadn't accepted Cane's offer yet. Billy needed to speak to Sally before making any sort of choice about how to proceed regarding Chancellor. Sally struggled to understand why Cane would hand something over to Billy after he openly declared an inability to trust Billy.

Sally counted on Billy at Abbott Communications, so she needed to know where he stood. As of that moment, she was convinced that Billy would accept Cane's offer. Billy was supposed to leave his previous battles in the past, and Sally didn't want him to get back in the mud with Victor.

Billy believed that future conflict with Victor was both inevitable and unavoidable, so what was the point? Sally believed that Billy's motivation was more about revenge on Victor (and Jill) than anything else. She felt that he needed to prove himself to Jill, but Billy didn't think Jill believed in them. Instead, Sally played the hurt son card.

Sally told Billy, "There is a lot of love in here for you. But there is also a gut feeling that if you go through with this and accept Cane's offer, that you're gonna be making the biggest mistake you've ever made."

Billy didn't care about Jill's reaction. He felt controlled by his mother, and although he claimed not to care, Sally thought otherwise. Billy accused Sally of standing in the way of what he believed he deserved.

Sally couldn't wait any longer for an answer about Billy's commitment to their company. She had a media company to run, and Billy being on the fence was becoming a problem. Sally told Billy to do whatever that he felt was right, but before she stormed out of their apartment, she made her stance clear. Going through with Cane's offer would render her quite unhappy.

The Young and the Restless' Diane questions Michael about Victor | Image: CBS

Michael spoke to Victor on the phone from Society, where the latter confirmed that Cane and Phyllis stole Newman. Diane joined Michael, who drowned his sorrows in the bottom of a glass. After some small talk, Diane asked for an update on Victor's attack on Jabot.

Diane was intrigued and asked what happened. Michael informed her that Victor had much larger problems to contend with at the moment. Diane was curious as to what problems Victor had that would get him to back down against his crusade towards Jack.

Michael didn't want to give more information than he already had. Diane understood where Michael was coming from, but she wanted proof that Victor no longer posed a threat. Michael caved and explained that the AI program attacked Newman Enterprises, gutting the company from the inside out.

Diane disclosed that Jack and Kyle attempted to make a deal with Victor, but the urgent text, evidently about Newman, and the deal fell through. Michael asked for details of the trade, but Diane didn't find that necessary.

Diane hoped that Victor could use his current situation as a way to learn from his mistakes. Instead, she believed it more likely that Victor would come back, stronger and more ruthless than ever.

Diane was convinced that Cane and Phyllis were responsible for the attack, which Michael did not deny. She realized that Michael was already looped in about that. Despite Michael's friendship with Phyllis, Diane wanted her put in her place for good.

The Young and the Restless' Jack and Kyle stand firm against the Newmans | Image: CBS

At the Abbott Mansion, Jack and Kyle walked through Victor's perplexing decision to let them walk away with Matt in their custody. Victor wasn't prone to allowing people who posed a threat to his family to get out of reach. Something significant was happening that had their number one enemy distracted like never before.

Although Diane was pumping Michael for information, Jack didn't think Michael would risk getting on Victor's bad side. Kyle didn't understand why everyone worried about Victor's feelings. He was a cold and uncaring person, but so many gave him a free pass to wreak havoc.

As Jack and Kyle considered bringing Jabot back online, Nick showed up at their front door and declared, "I'm saving my family." Nick was there for one reason, which was to regain possession of Matt Clark. He asked if either Abbott man knew the extent of Matt's attack on the Newmans, but they didn't know the full scope.

Jack discussed his attempt to use Matt as leverage to end Victor's war against him and Jabot. Nick demanded that Jack return Matt to him because he was far more dangerous than they realized. Jack might have believed that Matt was safely tucked away, but he was a master of escape.

Kyle and Jack refused to budge from their stance. They would only hand over Matt Clark if the AI program was destroyed. Nick understood where they were coming from, so he told them that Jabot was the furthest thing from Victor's mind.

Jack and Kyle laid out all of their theories about Phyllis and Cane, which were correct, but Nick needed them to understand the gravity of Matt's danger level. He explained that Nikki, Claire, and even Harrison could be used as collateral damage in Matt's obsession with hurting Nick and Sharon.

Nick screamed in Jack's face after he offered to get Nick ibuprofen for his extreme pain. After things calmed down, Nick agreed to make the same deal with the Abbotts that they attempted with Victor: return Matt to his possession, and Jabot would stay off of Victor's radar.

The Young and the Restless' Matt Clark lays unconscious in Nick's trunk | Image: CBS

Some time later, Nick arrived at Sharon's house, took some things, and quickly departed before Noah could see who was there. Nick returned a bit after that, with Matt in his trunk, and Noah raced outside to see what his father was up to, noticed Matt, and asked Nick if he was dead.

Noah pleaded with Nick to tell him what he planned on doing with Matt. If they weren't going to turn him over to the authorities, he had a lot of questions about Nick's intentions.

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