Good Morning! Morgan Stanley’s co-head of investment banking is predicting a broad rebound in M&A. Bitcoin is on track for its first full-year decoupling from stocks in over a decade, the first time since 2014 equities rallied while crypto fell. And Jamie Dimon says Europe has “a real problem.”

China’s Nvidia rival skyrocketed 425% after a $1 billion IPO. A record number of new billionaires are inheriting their way onto the list. And KKR is in talks to buy an Arctos stake (the Liverpool and PSG investor) as it leans deeper into sports ownership.

Plus: A lawsuit is spotlighting conflicts on continuation vehicles, Waymo is recalling its robotaxi software after school-bus incidents, Meta is buying AI wearable startup Limitless, and why professional athletes love to gamble.

Tired of constantly checking your email? Blueflame’s email agents analyze incoming CIMs, decks, and transcripts and save you hours of combing through email manifestos.

SQUEEZ OF THE DAY

Netflix Stuns Wall Street

After Warner Bros. spent most of this year putting itself up for sale, Netflix came out of nowhere with an $83 billion agreement to acquire Warner Bros. It’s the largest media transaction since Disney bought Fox for $71.3 billion in 2019, and a deal that instantly resets the balance of power across entertainment. 

For a company that has spent 27 years avoiding major acquisitions, this move represents a full strategic shift. Netflix is buying scale, IP, and a global content engine that finally rivals Disney’s, and it is doing so through one of the most ambitious and highly leveraged transactions the media sector has ever seen.

Warner Bros. had been under pressure from declining cable revenue, a heavy debt load, and an incomplete streaming turnaround. Paramount and Comcast explored bids, but Netflix’s speed and all-cash structure carried the process.

If approved, the deal will accelerate the consolidation of global streaming into a three-player market in which Netflix, Disney, and Amazon set the scale and everyone else faces niche strategies or eventual sale.

The structure of the deal shows how aggressively Netflix is pursuing a durable competitive advantage. WBD will first spin off its cable networks into a separate company (Discovery Global). Netflix will then acquire a cleaner studio and the full HBO/Max business for $72 billion.

The transaction is backed by $59 billion in committed financing from Wells Fargo, BNP Paribas, and HSBC. The breakup fee is $5.8 billion, which is among the largest on record and could signal the regulatory hurdles ahead.

For Netflix, the deal is all about stability and scale. The acquisition delivers HBO’s subscriber base, Warner Bros.’ production infrastructure, and one of the most valuable IP libraries in history. It reduces Netflix’s long-term content volatility and brings multigenerational franchises in-house.

The combined business could cover an estimated 350 to 450 million global streaming subscribers and control a theatrical slate that supports both box office and streaming economics. Netflix is effectively purchasing a cash flow engine designed to compound for decades.

Takeaway: This could be the defining entertainment transaction of the decade. It is a late cycle acquisition of a strategically distressed asset by a sector-leader seeking IP defensibility and multi-decade subscriber lock-in. It also signals that the streaming wars have moved into a consolidation phase where size and permanence matter more than experimentation. The streaming disruptor is officially the incumbent now.

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HEADLINES

Top Reads

• Morgan Stanley exec expects broad surge in M&A (USN)

• Bitcoin set for first yearly split from stocks in decades (YF)

• JPMorgan CEO Jamie Dimon says Europe has a real problem (BB)

• China’s answer to Nvidia soars 425% after $1 billion IPO (WSJ)

• Record numbers becoming billionaires through inheritance (Guardian)

• KKR said to be in talks to acquire Arctos stake in sports-investment push (BB)

• Lawsuit highlights private equity's CV conflict (Axios)

• Private equity’s hot ‘continuation’ trade leaves some feeling singed (FT)

• Meta acquiring AI wearable company Limitless (CNBC)

• SoftBank in talks to acquire data-center investor DigitalBridge (BB)

• Luxury residential projects boom on the Miami River amid real-estate surge (NYP)

• Is Bitcoin the digital version of tulips? (BB)

• Traders see a good chance for a FOMO-driven year-end stock rally (CNBC)

• Silver prices have doubled in 2025 (MSN)

• Waymo plans software recall to address bus incidents (BB)

CAPITAL PULSE

Markets Rundown

Market Update

• Stocks hovered near record highs Friday, with major indexes little changed but posting modest weekly gains to start December.

• Investors digested delayed September PCE inflation and consumer spending data, which came in largely as expected.

• Fed rate-cut optimism continues to support sentiment, along with a rebound in technology and AI stocks.

• Netflix announced a $72B cash-and-stock acquisition of Warner Brothers, though the deal is expected to face heavy regulatory scrutiny; Netflix fell 3%, while Warner Brothers rose 5%.

• Bond yields rose, while the U.S. dollar was steady against major currencies.

Economic Data Highlights

• The PCE price index—the Fed’s preferred inflation gauge—held steady in September, with both headline and core readings hovering just below 3% year-over-year.

• Goods inflation ticked slightly higher, offset by continued moderation in services inflation, suggesting stable but persistent price pressures.

• We expect inflation to remain above the Fed’s 2% target through 2026, likely settling in a 2.5%–3.0% range as steady growth keeps upward pressure on prices.

• The Fed may welcome the stability in inflation but is unlikely to declare victory, reinforcing a cautious approach to future rate cuts.

Sector Trends

• Technology and AI stocks extended their rebound on growing optimism around next week’s Fed decision.

• Energy lagged slightly as oil prices remain subdued near multi-month lows.

• Financials and industrials outperformed, supported by stronger credit conditions and business sentiment.

Earnings Today

• No significant earnings scheduled for Monday.

Movers & Shakers

• (+) Rubrik ($RBRK) +22% after the cloud data management and data security company posted blowout earnings.

• (+) Victoria’s Secret ($VSCO) +18% because of a sales rebound after the company brought back its catwalk marketing.

• (–) SoFi ($SOFI) -6% after the fintech platform announced a $1.5B public offering of its stock.

Prediction Markets

• Core inflation numbers come out December 10th.

• Trade on real-world events with Kalshi. Use code OWS to get a $10 bonus when you trade $10.

Private Dealmaking

• Celero Communications, a DSP provider for AI infrastructure, raised $140 million 

• Triana Biomedicines, a developer of molecular glue degraders, raised $120 million

• Antithesis, a software testing platform, raised $105 million

• Paradigm Health, a clinical trial matching business, raised $78 million

• Flex, a “private bank” platform for business owners, raised $60 million

• PermitFlow, an AI platform for construction, raised $54 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

BOOK OF THE DAY

The Compounders

Description: A deep-dive into nine little-known publicly traded conglomerates that have quietly rewritten the M&A playbook — using smart, small acquisitions plus ruthless reinvestment discipline to generate returns that rival legends. The book traces how firms like Constellation Software, Heico, and others turned modest deals into generational wealth, proving that time, compounding, and capital-allocation edge can beat hype every time.

Book Length: 236 pages 
Release Date: September 2, 2025

Ideal For: Long-term investors, value seekers, founders, operators, or anyone interested in learning how capital allocation and disciplined growth can build hidden multi-baggers.

“True compounding isn’t about rocket-solo deals — it’s about steady, deliberate acquisition and reinvestment, year after year.”

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DAILY ACUMEN

Reframing

When Thomas Edison's laboratory burned down in 1914, destroying years of work, he told his son, "Go get your mother. She'll never see a fire like this again."

The next day, he said, "There's great value in disaster. All our mistakes are burned up. Now we can start fresh."

Same disaster, different frame.

Your perspective is a choice. How can you reframe your challenges today?

Remember, it's not what happens to you, but how you respond that defines you.

ENLIGHTENMENT

Short Squeez Picks

• Why professional athletes love to gamble

• What New York’s waterfront could have looked like

• The link between happiness and creativity 

• The habits of naturally irreplaceable people

• 10 conversational phrases charismatic people use

MEME-A-PALOOZA

Memes of the Day

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