Netflix to buy Warner Bros. Discovery, Ulta earnings, Meta's rebound and more in Morning Squawk

In a significant development for the entertainment industry, Netflix has announced a deal to acquire the film and streaming assets of Warner Bros. Discovery. This acquisition concludes a lengthy sale process that has captured the attention of Hollywood. In other notable market news, Meta Platforms saw a resurgence, with shares climbing over 3% yesterday, marking a positive week for the Facebook parent company. This uptick was bolstered by reports that CEO Mark Zuckerberg is contemplating substantial cuts to the company’s metaverse division, potentially slashing its budget by as much as 30%, which could lead to job reductions within its virtual reality segment. Meanwhile, Ulta Beauty is defying industry trends by exceeding Wall Street's expectations for the third quarter. The retailer's strong performance resulted in a more than 6% increase in shares during after-hours trading. Ulta has raised its full-year profit and sales outlook for the second consecutive quarter, attributed to sustained consumer interest in beauty products even amid broader spending cutbacks. In political news, the Government Accountability Office (GAO) is investigating Bill Pulte, Director of the Federal Housing Finance Authority, following Senate Democrats' requests for a probe into allegations of misuse of federal resources. The inquiry focuses on claims that Pulte accused political opponents of mortgage fraud, leading to criminal referrals to the Department of Justice. Lastly, Tesla has significantly improved its ranking in Consumer Reports' latest evaluation of auto brands, moving up to the 10th position for 2026, compared to 18th last year. This rise is attributed to increased reliability, though the Cybertruck was noted as the only model receiving a below-average score. Subaru topped the list, followed by BMW and Porsche.