Upon hearing that Kirby has married Jeff, Joseph tells his daughter she has ruined her life. Blake suggests to Alexis they call a truce to their battle over Steven; Alexis offers Steven a share in Colbyco. Adam informs Fallon he doesn't consider Steven emotionally capable of handling the family business. After discussing the possibility of a reconciliation with Sammy Jo, Steven returns from New York alone. Blake disapproves of his son's plans to move out of the mansion with little Danny, but Krystle insists he let him go to prevent further alienation.

As the Board of Directors gathers to vote on the Denver-Carrington/Colbyco merger, Alexis pointedly tells the group that a nay vote will be met with immediate dismissal. The approval of the motion sends Blake into a fury. Kirby is upset to find Jeff and Fallon laughing together; Krystle comforts her, and also tries to patch up relations between Steven and Blake. Jeff accuses Adam of falsifying reports regarding Denver-Carrington; Alexis warns Fallon of Mark's history as a gigolo. Alexis learns Congressman McVane has managed to block the merger; outraged, she spills her knowledge of his scandalous past to the press.