The Rundown Netflix Buys WBD in Historic $83B Deal, Tesla Launches Affordable Model 3 in Europe
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Dec 5, 2025 A groundbreaking $83 billion acquisition sees Netflix gobbling up Warner Bros. Discovery. The deal's structure involves cash and stock, but Netflix is leaving out cable channels to focus on new assets. Market reactions are mixed, raising antitrust concerns and shareholder worries. Meanwhile, Tesla launches an affordable Model 3 in Europe, betting big on full self-driving tech as the future of their success. Plus, beauty retail shines with Ulta's robust earnings, while HPE faces setbacks with AI server delays.
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Small Caps Rally On Rate-Cut Hopes
- Small caps outperformed with the Russell 2000 hitting record highs amid speculation of Fed rate cuts next week.
- Zaid Admani explains smaller companies benefit more from lower borrowing costs due to higher debt sensitivity.
PCE Shows No Surprise Inflation
- The delayed September PCE inflation report showed 2.8% year-over-year, in line with expectations and comforting to markets.
- Zaid Admani highlights that upcoming November inflation and jobs data will be critical for Fed rate expectations.
Netflix's Risky $83B Play
- Netflix is acquiring Warner Brothers Discovery for $83 billion, focusing on the studio and HBO Max while spinning off cable assets into Discovery Global.
- Markets reacted poorly and Netflix accepted a $5.8 billion breakup fee, signaling antitrust risk and shareholder concern.