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Market Data Table

Breakfast News: WBD May Sell to Netflix

December 5, 2025

Thursday's Markets
S&P 500 6,857 (+0.11%)
Nasdaq 23,505 (+0.22%)
Dow 47,851 (-0.07%)
Bitcoin $92,394 (-0.93%)

A chart showing Netflix's free-cash-flow reserves.

1) Netflix Eyes Some WBD Assets in Talks

Bloomberg reports Warner Bros. Discovery (NASDAQ:WBD) has entered exclusive talks with Netflix (NASDAQ:NFLX) to sell the film, TV studio and streaming divisions, with a deal possible within days. The former's shares slipped over 1% in pre-market trading, while Netflix stock edged down around 0.5%.

Netflix offering $5 billion breakup fee if deal doesn't get regulatory approval: Yesterday, a group of anonymous film producers sent a letter to Congress warning that such a deal would result in monopolistic control of the industry, giving Netflix sweeping power in the entertainment space.
"Netflix would be a fascinating parent to take on the streaming and studio assets": Earlier this week, TMF Chief Investment Officer Andy Cross said, despite the deal complexities, "Netflix has the biggest advantage: it lacks the baggage but has the scale of monetizing long-term assets better than anyone."

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2) DOCU Disappoints, ULTA and SFIX Rally

Docusign (NASDAQ:DOCU) fell over 6% in pre-market trading, as the guidance coming from quarterly results underwhelmed investors despite CFO Blake Grayson saying "both full-year revenue and billings have hard year-over-year comparisons against last year's higher volume of early renewals."

K-Beauty "continues to resonate and drive skincare sales": Ulta Beauty (NASDAQ:ULTA) jumped over 5% in early-hours trading thanks to earnings and revenue topping estimates, with CEO Kecia Steelman attributing success to Korean products.
"The ninth consecutive quarter average order value (AOV) has increased year over year": Rule Breakers rec Stitch Fix (NASDAQ:SFIX) rose 2% after market hours, with results showing generative artificial intelligence (AI) and human stylists helping, as CEO Matt Baer flagged higher average client spend.

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3) U.S. Looks to Buy More Mineral Stocks

A White House official confirmed that the government is planning on taking more equity stakes in critical mineral companies, as it aims to protect national security concerns and compete with Chinese suppliers.

"We're literally buying equity … because that's the only way we're going to catch up with China": Jarrod Agen, executive director of the National Energy Dominance Council, declined to give specific company details but said there was a broad scope of businesses making the right case for investment.
$1 billion spent in the past year in mineral and mining stocks: The U.S. government already holds stakes in stocks such as MP Materials (NYSE:MP), with previous announcements sending the respective stock prices soaring.

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4) PepsiCo Nears Settlement With Elliott

The Wall Street Journal reports PepsiCo (NASDAQ:PEP) is close to agreeing on a settlement deal with Elliott Investment Management as part of the ongoing work to overhaul PepsiCo's portfolio of brands with the activist investor. The stock price was little changed ahead of the market open.

$4 billion stake taken in early September: After taking on the initial stake, Elliot has pushed for changes, including franchising switches for its bottling operations and divesting underperforming assets in its food business.
Still "a few areas where we need to probably educate each other a bit more": PepsiCo CEO Ramon Laguarta said constructive discussions have taken place since the stake was initiated, but details of the settlement agreement so far are thin on details.

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5) Your Take

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