The Rundown – December 5, 2025

Host: Zaid Admani
Main Topics: Netflix’s $83B Acquisition of Warner Bros Discovery, Tesla’s Affordable Model 3 Launch in Europe, Stock Movers (Ulta & HP), Excel World Championship

Episode Overview

Today's episode of The Rundown dives into a seismic shift in the entertainment industry with Netflix's historic $83 billion deal to acquire Warner Bros Discovery. Zaid Admani breaks down why he thinks this is a risky move for Netflix and discusses the market's reaction. The episode also covers Tesla’s latest effort to regain market share in Europe with a new, more affordable Model 3, notable moves from Ulta and HP after their earnings and outlooks, and ends with a lighthearted recap of the Microsoft Excel World Championship.

Market Recap & Macro News

[00:45 – 02:00]

• The S&P 500 rose by 0.1%, Nasdaq was up 0.2%, while small caps (Russell 2000) outperformed, jumping 0.7% to record highs.
• Investors anticipate Fed rate cuts at the upcoming December 10th meeting, positively affecting small companies reliant on debt.
• "Lower rates mean lower borrowing costs, which could have a meaningful impact on small companies. Bottom line." – Zaid Admani [01:19]
• The long-delayed September PCE inflation report (the Fed’s preferred gauge) was released, showing inflation up 2.8%, in line with expectations.
• "Obviously this data is pretty old at this point, but it's nice to see there wasn't any unexpected spike in inflation back in September." – Zaid Admani [01:41]
• Markets responded positively, trending green, suggesting possible record highs to close the day.

Main Story: Netflix’s $83B Warner Bros Discovery Acquisition

[02:10 – 06:44]

• Deal Breakdown:

  • Netflix pays $83 billion (over $50 billion in cash); Warner shareholders get $23.25 in cash + $4.50 in Netflix stock per share.
  • Netflix gains Warner Bros movie studio, studio lot, and HBO Max.
  • Key franchises acquired: Superman, Batman, Harry Potter, Game of Thrones, The Sopranos.
  • Cable channels (TNT, CNN, Discovery Channel, etc.) spun off into a new company called Discovery Global.
  • Cable segment’s revenue was down 23% last quarter – Netflix avoided purchasing this struggling segment.

• Industry Reaction & Critique:

  • "This is Netflix's largest deal by far and the largest entertainment deal of the decade." – Zaid Admani [02:21]
  • Paramount and Comcast were frontrunners; Paramount is frustrated, claiming antitrust regulators won't approve the deal.
  • Netflix acknowledges the regulatory risk, agreeing to a $5.8B breakup fee if the deal is blocked.
    • "That's a massive breakup fee. They seem to be confident they're gonna get this deal to go through." – Zaid Admani [05:10]
  • Netflix stock fell 4% after the announcement.
  • Zaid expresses skepticism:
    • "I'm not loving this. This deal doesn't make that much sense to me. Like, I'm not sure why Netflix is even doing this." [05:36]
    • Notes overlap in subscriber bases and the challenges with Netflix adopting the theatrical release model.
    • Concerns about reduced competition in Hollywood, with one less major studio for creatives.
    • "Maybe Netflix will change their business model moving forward and start putting movies in theaters. But I think a lot of people working in Hollywood aren’t going to like this…" [06:20]
  • Conclusion: The deal could reshape Hollywood, but may pose major risks for Netflix shareholders.

Tesla’s New Affordable Model 3 in Europe

[06:44 – 07:56]

• Tesla launches a new Standard Model 3 for Europe, priced variably by country ($32,000 in Norway, higher in Germany).
• Faces tough competition from Chinese automakers, especially BYD, whose Dolphin Surf EV is priced at $26,000.
• Zaid’s take: The real determinant of Tesla’s future isn’t car models anymore, but the success or failure of Full Self-Driving (FSD) technology.
  • "The cars don't matter anymore when it comes to Tesla. The success of the company will now depend on if they can get full self driving to work." [07:31]
  • Warns that competitors like Waymo may outpace Tesla on autonomy.

Stock Movers: Ulta & HP

[07:56 – 08:54]

• Ulta:

  • Reports strong Q3 with a beat on earnings; raises full year outlook for the second straight quarter.
  • Comparable sales up 6.3% YoY in Q3; shares up more than 6%.
  • CEO notes tight consumer budgets, but beauty products stay resilient due to the "Lipstick Index."
    • "Beauty products tend to be resilient, even in an economic slowdown. In fact, there's the famous Lipstick index, which shows that sales of makeup increase during an economic slowdown..." [08:22]

• HP:

  • Shares down 9% after projecting weaker than expected quarterly outlook due to delays in AI server purchases, especially from government clients.
  • Q1 revenues expected below Wall Street estimates, with revenue shifting into the second half of next year.

Fun Fact: Excel World Championship

[08:54 – 09:54]

• The Microsoft Excel World Championship just wrapped up in Las Vegas.
• Event featured energetic crowds, WWE-style entrances, and 25 top competitors.
• Champion: Dermund Early, an Irish financial consultant, who received a trophy, championship belt, and $5,000 prize.
  • "Honestly, I'm kind of surprised that the champion only gets a $5,000 prize. I'm not gonna lie. I kind of want to go to this event next year." – Zaid Admani [09:39]
• "If you're a finalist at this event, that has to go on your resume, right? Because everyone lies about how good they are at Excel on their resume. But these guys have the receipts to prove it." [09:33]

Notable Quotes

• On the Netflix/Warner deal:
  "This is Netflix's largest deal by far and the largest entertainment deal of the decade." – Zaid Admani [02:21]
• Market sentiment:
  "Lower rates mean lower borrowing costs, which could have a meaningful impact on small companies. Bottom line." – Zaid Admani [01:19]
• On Tesla:
  "The success of the company will now depend on if they can get full self driving to work..." – Zaid Admani [07:31]
• On Excel Championship:
  "If you're a finalist at this event, that has to go on your resume, right? Because everyone lies about how good they are at Excel on their resume. But these guys have the receipts to prove it." – Zaid Admani [09:33]

Key Timestamps

• 00:45: Market update and Fed outlook
• 02:10: Netflix’s Warner Bros Discovery acquisition explained
• 05:36: Host’s skepticism and industry critique of the deal
• 06:44: Tesla’s affordable Model 3 Europe launch and industry context
• 07:56: Ulta’s earnings and “Lipstick Index;” HP’s weak outlook
• 08:54: Excel World Championship segment

This episode delivers sharp analysis, timely stock moves, and an entertaining break with the Excel World Championship—ideal for investors keeping an ear on both Wall Street and pop culture.