Stock Movers: Warner Bros. Rejects Paramount Bid, Affirm Rallies, Estee Lauder Gains

Warner Bros. Discovery and Paramount Deal

• 📉 Warner Bros. Discovery (WBD) stock dropped nearly 3% and was down in post-market trading, currently around $28.75 a share.
• 🚫 Warner Bros. is planning to reject Paramount's hostile takeover bid due to concerns over financing and other terms, according to a Bloomberg scoop.
• 🤝 The Warner Bros. board still believes its existing agreement with Netflix offers greater value and certainty compared to Paramount's proposal.
• 💰 A key sticking point for Warner Bros. is the financing proposed by Paramount, which is led by David Ellison and partially backstopped by a revocable trust managed by Larry Ellison's wealth, adding uncertainty.
• 💸 Simultaneously, Jared Kushner's Affinity Partners is exiting the takeover battle for Warner Bros. Discovery.
• 🌍 Despite Affinity Partners' exit, Paramount's offer is reportedly bankrolled by influential Middle Eastern investors including Saudi Arabia's Public Investment Fund, Qatar Investment Authority, and Lamad Holding Company.
• 📈 In related news, Netflix saw a slight post-market increase of 6% following these headlines.

Affirm's Healthy Trends

• 🚀 Affirm (AFRM) shares gained as much as 12% during the regular trading session.
• ✅ The company's Chief Financial Officer stated at an industry event that quarter-to-date trends were healthy, according to an Evercore ISI analyst.
• 📊 Bloomberg Intelligence research suggests that Apple's multi-lender partnerships and adoption among millennials and Gen Z could benefit buy now, pay later companies like Affirm.

Estee Lauder's Strong Outlook

• ✨ Estee Lauder (EL) stock rose over 3% in regular trading.
• 📈 Bank of America raised its price target on Estee Lauder to $130 from $120, reiterating a buy recommendation and naming it their top pick in beauty for 2026.
• 🌏 This optimism is attributed to improving beauty demand in China and the US, along with a projected margin rebuild.