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 $92,395 (-0.92%) |
1. Netflix Eyes Some WBD Assets in Talks
Bloomberg reports Warner Bros. Discovery (WBD 0.12%) has entered exclusive talks with Netflix (NFLX 0.71%) to sell the film, TV studio and streaming divisions, and the latter confirmed around 7:00am ET it’s struck a deal to buy for $27.75 per share, with the total enterprise value of the transaction standing at approximately $82.7 billion.
- 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 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."
2. DOCU Disappoints, ULTA and SFIX Rally
DocuSign (DOCU +0.68%) 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 (ULTA 1.94%) 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 (SFIX +2.19%) rose 2% after market hours with results showing generative AI and human stylists helping, as CEO Matt Baer flagged higher average client spend.
3. U.S. Looks to Buy More Mineral Stocks
A White House official confirmed 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 including MP Materials (MP +5.26%), with previous announcements sending the respective stock prices soaring.
4. PepsiCo Nears Settlement With Elliott
The WSJ reports PepsiCo (PEP 0.78%) is close to agreeing a settlement deal with Elliott Investment Management, as part of 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 been had since the stake was initiated, but details of the settlement agreement so far are thin on details.
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