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At the Club, Audra is on the phone trying to get an employee from Glissade to meet with her, to no avail. After the call, Audra spots Jack and tells him she has some information that could be of great use to him. They sit, and Audra tells him how much she regrets her association with Tucker. Jack can appreciate that. Audra learns that Jack and Diane aren’t seeing eye-to-eye these days after mentioning that his wife doesn’t like her. She knows the source of conflict is Kyle. Jack wants to know exactly what she’s after.

Jack knows Kyle was not comfortable working with Audra. She says that’s because she outranked him in every way. Jack hopes she doesn’t think he can help her get her job back… he and Kyle are barely on speaking terms. Audra insults Kyle. Jack can’t believe she would badmouth anyone after the stunts she’s pulled. Audra tells him he has it all wrong… she’s not the bad influence here. Jack squints, “Then who is?” Audra replies, “Victor Newman. He’s the silent investor behind Glissade. He’s the one who’s been pulling Kyle’s strings all along.” Jack had a hunch. It’s nice to get confirmation. Audra tells him she can be more useful. She knows all the inner workings of Glissade and she wants it back. She imagines he wants his son back. “Maybe we can make a deal.”

Adam brings a positive update from Newman Media to his father’s desk. Victor thinks it’s proof he was right to put him in charge and says Nikki and Victoria will get used to the idea, and eventually appreciate it. Adam gets the feeling he called him in there for another reason. Victor has an assignment he only trusts him to carry out. Adam asks where he wants him to direct his ruthlessness this time.

Victor tells Adam he values his business savvy and newfound family loyalty. Adam asks him to fill him in on the assignment. Victor wants him to create Newman Media to create buzz about the goings-on at the Abbott Chancellor corporate suites. The firings up there have become commonplace… at a once proud company. Adam learns it’s not only Lily, but Chance too. Victor says he prefers to put his life on the line rather than work for Billy Abbott. Adam thinks that sounds like Billy’s trademark leadership style. He’ll put his best mud-slingers on it. Victor warns he’s not to go after Lily or Chance… only Billy. Adam thinks he’s officially fair game again. Victor asks Adam to do this as smoothly as possible, and make it look as though Billy’s totally out of control. Adam says that’s a piece of cake. Victor has another assignment. He wants himt o use Newman Media to smooth over Audra Charles’ exit from Glissade.

Phyllis joins Billy in his office, and he apologizes for her over-hearing Jill. She asks how bad it was, and he doesn’t want to get into it. It was a private conversation. Phyllis persists, “What prompted the call?” Billy says, “Lily.” She spun things to Jill and made him look like a back-stabbing villain. Jill doesn’t believe that Lily was plotting against him. Phyllis would never side with anyone against her son. Billy says she’s also upset that Chance left, and that he hired Phyllis. The redhead says she’ll have to live with it. Billy says, “No, she doesn’t.” She gave him an ultimatum. He has until Abby’s wedding to rectify his mistakes… namely Lily and Phyllis. She gawps, “Oh my God, are you going to fire me?!’

Billy can’t worry about her. Phyllis gawps, “Thanks, Billy.” Billy apologizes, but he doesn’t have a choice. He doesn’t like this anymore than she does. Phyllis tells him not to do it then. Jill gave him the company to run. She can’t see how well they work together. Billy says if he doesn’t fire her, he’ll lose everything. She’ll seize control. “And then both of us are out on the streets.” Phyllis can’t believe Jill’s threatening to take away the company Billy named in her honor. If he fires her, this will be the third high-ranking exit. It will look like he doesn’t have control of the company. Billy has to fire her, but he’s not going to rehire Lily. “That door is not going to open.” Phyllis suggests there might be a third door that will let him hold onto everything.

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In his apartment, Chance tells Daniel, “That’s definitely blood. A lot of it. Do you have any idea where this came from?” Daniel says he has no idea. He asks what Chance thinks. Chance tells him not to panic. They’ll have it analyzed and find out whose blood it is. Chance tells Daniel to steer clear of the cabinet. Daniel questions why the person who put them there didn’t wash them first if they were trying to hide something. Chance thinks they were in a hurry. He asks Daniel if he’s sure that’s Heather’s phone. Daniel confirms it and wonders how it got back in here. He reaches to take it to put in the passcode. Chance wants to handle it at headquarters. Daniel is upset. Chance has to follow police procedure, but he relents and asks Daniel the passcode. Daniel tells him. Chance puts it in, and it doesn’t work.

Chance questions why the passcode Daniel gave him won’t work on Heather’s phone. Daniel can’t understand it, but remembers he can request a change of code. He does so, and while they wait, he says he’s been calling and texting that phone non-stop. Why wouldn’t he have heard it in the cabinet? Chance muses that maybe it wasn’t there the whole time. Daniel asks, “You think that somebody brought it back here recently?” He can’t understand how that would be possible. Getting the new passcode, he gives it to Chance, who says, “I’m in.”

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In Victor’s office, Adam assumes he doesn’t want the real story out… that Audra was unceremoniously booted from the company without a reason. He asks if he trusts Audra not to tell the real story. Victor thinks she’ll honor the NDA. Adam questions him trusting Kyle. Victor says he’s capable and coming into his own, “He just needed the right mentor.” Adam asks if he’s suggesting his father was not the right one. Victor asks, “Did I mention his father?” Adam isn’t buying that this is family business. He had one condition for coming back to Newman Media… that he wouldn’t go after Jack or his family. Victor protests that he’s promoted his son. If Glissade’s success means the demise of Jabot, so be it. Adam tells him, “You know my conditions.” Victor replies, “Son, you know mine.” Adam walks out and passes Michael. He thinks he can help him and asks what Victor’s plan is for the companies and Jack Abbott, “Be specific.”

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Michael tells Adam he’s not privy to Victor’s plans anymore. Adam’s not buying it. Michael says he’s not in his father’s good graces. Adam asks about his father using Kyle as a weapon to get back at Jack. Michael says that Jack and Diane will know how to deal with it better than most. Adam thinks Victor is grooming Kyle, and not for any good purpose. Michael suggests he might have fondness for Kyle. Adam can personally attest that Victor playing father figure to anyone is a double-edged sword. He’s sure that Victor’s plan is even worse than he thought.

At Daniel’s place, he wants Chance to tell him if he’s seeing any red flags on the phone. Chance goes through her calendar and sees she was planning ahead for Thanksgiving. Daniel tears up. Chance sees there were no outgoing calls before she disappeared. He looks through the text exchanges with Daniel and spots an unsent text to Paul. Daniel pleads, “What does it say?” Chance thinks he should take it down to headquarters. Daniel pleads with him. The not knowing is killing him right now. Chance reads Heather’s unsent text to Paul, which says she and Lucy may need to come to Lisbon since she and Daniel have been fighting non-stop and it’s starting to scare her. Daniel says it’s not true. Chance continues that his anger issues have resurfaced and are worse this time around. Daniel can’t imagine Heather writing that to Paul or anyone. Daniel protests that he never gave Heather a reason to be scared of him. Chance wants to take the phone to forensics. Daniel yells at him. He tells Chance that Heather was everything to him. He asks if Lucy was right and Chance is looking at him as a suspect now.

At Abbott Chancellor, Billy tells Phyllis it doesn’t matter what she has to say, it’s not going to change what has to happen. Phyllis wants to pitch her idea, but he begs her to stop. He rants about having to hold off Victor and appease his mom. He can’t continue to fight for her! Phyllis asks him to pretend to fire her in a public place. Billy says his mom’s not an idiot. She’ll see that she’s still on the payroll. Phyllis will work unpaid until they make a success of things, then Jill will see her in a whole new light. She cries, “Please do not fire me. Not only that, you have to hire Daniel.” She pleads that this needs to happen. Billy is sorry. He can see she’s upset, but maybe not working there will be good for her… she can focus on her son and herself.

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Phyllis rants at Billy not to pretend to care about her. Having the job forces her to focus on something other than her grief and will do the same for her son. Billy doesn’t think it’s the answer she’s looking for. Phyllis says fine. She’ll bypass him and go to the source and plead her case. Billy warns it won’t work. Phyllis says she’ll make Jill love her. Billy reminds her his mother can out-stubborn a brick wall. Phyllis tells him he’s underestimating her.

At Newman, Michael heads into Victor’s office. He tells him that Adam is deeply concerned about his plans for Jack Abbott. Victor can’t understand why his son feels any loyalty to Jack Abbott. Michael says it could be human compassion, but it’s also possible he feels that he is exploiting Kyle for his own gain. Since he’s using Adam’s division as an attack dog, it’s possible he feels exploited. Victor gave his son a powerful position. If he fails to execute his duties, he’ll fire his ass!

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At the Club, Jack asks Audra what kind of deal she’s proposing. Audra will help him get his son back where he belongs, and he can help her get her company back. Jack won’t bargain for Kyle. He will handle Victor and Kyle on his own. Audra gambled by violating her NDA on him being the honorable man he claims to be. Doesn’t he think she’s entitled to something in return for risking Victor’s wrath. Jack advises her to walk away. She won’t beat Victor and he doubts she’ll ever run Glissade again. Audra fumes, “Watch me.”

In Billy’s office, Phyllis says she can convince Jill she’s not a mistake. Billy tells her if her strategy fails, he’ll lose everything. He can’t gamble on her plan. Phyllis informs him that he either lets her do this, or he fires her and becomes his mommy’s puppet dancing on a string.

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At Daniel’s place, Chance tells him they’ll have to do a more thorough search and he needs to make other living arrangements. Daniel rants that he loved Heather and loves his daughter. His family was everything to him. Chance tells him that because of the evidence he just found, the apartment is now considered a crime scene. Daniel fumes, “You are not doing this right now!” Chance says he is. Daniel asks what he thinks this will do to Lucy. Chance says forensics will be there soon. “You need to leave. Now.”

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Next on The Young and the Restless: Kyle makes a dangerous deal with Victor, Daniel finds himself in a compromising position, and tension builds between Diane and Jack.