that.5 Things to Know Before the Stock Market Opens on Friday

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Here are five key points investors should keep in mind as the market opens:

Netflix announced that it has signed a definitive agreement to acquire the film studio and streaming assets of Warner Bros. Discovery (WBD). The transaction ends a months‑long auction that has dominated entertainment headlines.

• The deal gives Netflix control of the WBD film library and the HBO Max streaming platform. Discovery will retain its cable‑network portfolio, including TNT and CNN, which it will spin out as a separate public entity.
• Netflix will pay $27.75 per WBD share in a cash‑and‑stock structure, valuing the combined enterprise at roughly $82 billion.
• Closing is expected in Q3 2026, after the Discovery spin‑off is completed.
• Competing bids were submitted by Paramount Skydance and Comcast’s NBCUniversal, but the Netflix proposal emerged as the frontrunner.
• Paramount’s legal team filed a letter with WBD CEO David Zaslav questioning the fairness of the auction process.

Strategic impact: By adding a deep film catalog and a premium streaming service, Netflix aims to diversify revenue beyond its core subscription model, improve content cost efficiencies, and better compete with Disney+ and Amazon Prime Video. The acquisition also positions Netflix to tap into legacy franchise IP, potentially boosting international growth and advertising‑supported tiers.

Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. A future spinoff could make Versant the new parent of CNBC.

Meta Platforms shares jumped more than 3% on the news, nudging the company back into positive weekly performance and providing modest lift to both the S&P 500 and Nasdaq Composite.

Bloomberg reported that Zuckerberg is authorizing a substantial budget reduction for the company’s metaverse division—up to 30% of its annual spend. The cuts could include headcount reductions that would affect the Reality Labs segment.

Analysts view the move as a pragmatic response to persistent under‑performance of the metaverse business, which has yet to achieve meaningful monetization. By reallocating capital toward its core advertising engines and AI‑driven products, Meta aims to preserve cash flow while keeping a foothold in emerging immersive technologies.

Ulta Beauty outperformed market expectations in its third‑quarter earnings, propelling the stock higher than 6% in after‑hours trading.

Management raised both full‑year profit and sales guidance for the second consecutive quarter, citing stronger comparable‑store sales and continued consumer appetite for beauty products—even as discretionary spending elsewhere eases.

Strategic outlook: Ulta’s omnichannel strategy, which blends a robust e‑commerce platform with an expansive physical footprint, is delivering higher basket sizes and repeat visitation. The company’s loyalty program, Ultamate Rewards, now exceeds 30 million members, providing valuable data for targeted promotions and inventory optimization.

The Government Accountability Office announced a formal investigation into FHFA Director Bill Pulte following a request from Senate Democrats. The inquiry will examine whether Pulte and agency staff abused federal authority to target political opponents of former President Donald Trump with mortgage‑fraud allegations.

Pulte has previously referred several high‑profile Democrats, including New York Attorney General Letitia James and Senator Adam Schiff, to the Department of Justice. The GAO has not set a timeline for its review, and FHFA declined to comment.

Potential ramifications: A finding of misconduct could trigger leadership changes at the FHFA, affect confidence in the agency’s oversight of Fannie Mae and Freddie Mac, and influence broader discussions about the politicization of federal housing policy.

Tesla rose to #10 in Consumer Reports’ 2026 auto‑brand ranking, a notable jump from #18 the previous year.

The improvement stems largely from better reliability scores across the Model S, Model 3, Model X, and Model Y. The Cybertruck remains the only Tesla model with a below‑average rating, reflecting ongoing concerns about its build quality and production scalability.

Industry perspective: Tesla’s ascent signals that incremental quality gains are resonating with consumers, even as competitors such as Subaru, BMW, and Porsche retain top‑spot positions. Continued focus on manufacturing consistency and after‑sales service will be critical for Tesla to maintain momentum.

Suggested reads for the weekend:

— Reporting contributed by Julia Boorstin, Lillian Rizzo, Alex Sherman, David Faber, Sara Salinas, Sarah Whitten, Melissa Repko, Chris Eudaily, Dan Mangan, and Michael Wayland. Edited by Josephine Rozzelle.