Morning Brew Daily - Hollywood Hates Netflix’s WBD Takeover & Apple Dazed By Leadership Exodus
Episode Date: December 8, 2025Episode 730: Neal and Toby dive into Netflix’s industry-changing deal to buy Warner Bros. Discovery. Then, Apple is undergoing a personnel shift as key executives are leaving the company. Meanwhile,... micro cars in Japan have caught the attention of President Trump who wants to bring them to the US, despite regulatory hurdles in the way. Also, heads to tech billionaires and prominent figures on top of robotic dogs become the latest artwork that signifies a wave of digital art. Finally, a look into what’s coming in the upcoming week. Check out https://www.linkedIn.com/mbd for more. Get your MBD live show tickets here! https://www.tinyurl.com/MBD-HOLIDAY Subscribe to Morning Brew Daily for more of the news you need to start your day. Share the show with a friend, and leave us a review on your favorite podcast app. Listen to Morning Brew Daily Here: https://www.swap.fm/l/mbd-note Watch Morning Brew Daily Here: https://www.youtube.com/@MorningBrewDailyShow Learn more about your ad choices. Visit megaphone.fm/adchoices
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Good morning for Daily
show. I'm Neil Fryman. And I'm Toby Howell.
Today, why everyone is angry about
Netflix's takeover of Warner Brothers.
Then something is rotten
inside of Apple.
It's Monday, December 8th.
Let's ride.
Good morning and welcome back to the week.
I know it's not exactly my lane
to comment on design trends, seeing
as I don't follow any, but couldn't
help but notice that Pantone released its color of the year for 2026 late last week.
And it was a true shocker, an off shade of white.
The first time Pantone has gone white in the 26 years has been choosing a color of the year.
As Pantone sees it, the white shade called Cloud Dancer, is, quote, a symbol of calming
influence in a frenetic society, a blank canvas upon which we can start anew peace, unity,
and cohesiveness.
Others saw it quite a bit differently, saying white was a bailout choice and at odds with
the tempestuous political climate. Either way, Toby, I think this means you have to wear a white
tucks to your wedding next year. I think that's a good idea. I think there will be a white dress
involved. So we got half of it covered already. Pantone's Instagram announcing this was a
kind of a battlefield, honestly. There was 13,200 comments under the post. The general vibe was
white for real. Some people called it a recession indicator because how can the color of the year
have no color.
And I thought I was going to be a hater of this, too,
if not for one specific fact, the name.
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Oh, what color is that wall?
Oh, that's Cloud Dancer.
What color is that cable-knit sweater you're wearing?
Oh, this, this old thing?
This is Cloud Dancer.
So the color itself, eh, the name, let's ride.
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Netflix has sent an earthquake rippling from SoCal to D.C. after agreeing on Friday to buy Warner Brothers Discovery.
Worth $83 billion, it's Netflix's largest purchase by far and cements the Silicon Valley Disruptor as the new emperor of Hollywood.
In buying WBD, Netflix will acquire one of the most valuable and iconic movie studios and libraries in existence, which includes,
DC Comics, Harry Potter, and HBO's entire portfolio.
Speaking of HBO, Netflix will also take control of HBO Max, the third largest streaming
service with about 130 million subscribers.
You already know who's number one.
Co-CIO Ted Sarandos acknowledged the deal was a departure from the company that has
typically built things internally instead of buying them from the outside.
I know some of you are surprised we are making this acquisition, he told analysts on
Friday, but this is a rare opportunity that will help us achieve our mission to entertain the
world. He's right about one thing. This is going to be entertaining because the merger announcement
is just the start of what could be years of drama. Already, Hollywood labor groups and some politicians
have come out against the deal saying it would give Netflix an illegal monopoly over the
entertainment industry. Plus, the companies that Netflix beat out to buy WBD probably aren't going
to sit still. Paramount, whose all cash offer for WBD was passed over by the board, could launch a
hostile bid, taking its pitch directly to shareholders with a price above Netflix's.
But let's start here, Toby. There doesn't seem to be anyone outside of Netflix and WBD that is
happy about this deal. Yeah, Hollywood, not very happy whatsoever, usually because they've lived
this before. Whenever consolidation happens, usually it ends up with job loss. Every major
studio merger over the last decade usually ends up with people losing their jobs. If you go from
Disney to Fox in 2019, the Skydance Paramount merger, they all
lead to job loss, not as much job creation. And then there's also a bunch of fear about what Netflix
is going to do to the theatrical landscape because Netflix is a streamer. They want you sitting at home.
Netflixing and chilling. They don't necessarily need you going into theater. So when you bring a
major movie studio like Warner Bros. Under its wing, are they going to have the same theatrical release
windows? Is it going to be a priority for them anymore? So there's both the immediate real-term effects
of we're probably going to see some job loss here. And then also the long-term effects is, what's
going to happen to theatrical releases? Yeah, so Netflix, COCIO, Ted Serendos, has talked about the
business model of theatrical releases and in the past quite a bit. And he said, they are, quote,
outmoded. He is not a huge fan. And then go to after the merger announcement, that was all the
questions he was being asked. So what are you going to do after you acquire the Warner Brothers
movie studio? Are you still going to have them do theatrical releases? And he said,
right now, you should count on everything that is planned on going to the theater through
Warner Brothers. So he's sticking to that business model. But a lot of people focused on those
two words at the beginning of that quote right now. And who knows what's going to happen in the
future should this acquisition get close. And it has a complicated regulatory battlefield ahead.
There's going to be a lot of antitrust scrutiny here because one, just immense market
concentration in streaming, putting HBO Max alongside Netflix to the biggest streamers.
Also just immense control over these IP libraries because Netflix has built up
its own IP library. Now you toss in Warner Bros. as well. Distribution power. If you have both the
content and the platform, that is a textbook case of antitrust scrutiny. All of that being said,
it did look like Netflix, Ted Serendos. By the way, he is always referred to as CoCio Netflix.
That's his title. It's his title. He met with President Trump a few weeks ago, and Trump apparently
gave the blessing of this Warner Brothers merger. He said that WBD should go to the highest bidder,
so maybe it won't be as big of an antitrust scrutiny as we are thinking.
But just on paper, it looks like it should be.
But last night, Trump was hosting the Kennedy Center honors.
He was asked about this deal on the red carpet.
He said the takeover, quote, could be a problem because of the size of market share.
So it seems like he's waffling.
But in the end, it's not necessarily up to him.
He could probably put his thumb on the scale because he is the president of the United States
and an especially active one in the private markets.
It will come down to the DOJ, which does review all of these mergers.
And then besides the antitrust scrutiny, this deal has an uphill climb because of those other bidders that were offering submissions for WBD, Paramount and Comcast.
They could launch what's called a hostile bid where they go over the top of the board and appeal directly to shareholders.
And they already, Paramount already gave a signal that it would maybe do that because over the last week, while Netflix was circling this particular deal, Paramount released a letter saying, calling the,
process rigged and saying that the board
always had it in the bank for Netflix
so they could say, hey, shareholders,
we're giving you more money. This is a raw deal
that Netflix is giving you and try to persuade them
that way. So this thing is juicy.
It's just getting started. But
for Netflix, wow.
This is a sign that Silicon Valley
has taken over Hollywood. Netflix is
constantly reinventing itself, breaking
its own rules and said it would
never do ads. It recently launched
an ad tier. It said it would never do sports.
It's now hosting an NFL game on Christmas
day. It said it would never make big purchases and only build things internally. Well, now it's
buying one of the biggest movie studios in the entire planet. Let's move on. Apple has always been
the eldest child of the tech world. Never wanted to cause drama, always stray days, steady as
she goes. The Neil Fryman of the tech world. But now the tech giant is losing talent in droves,
falling behind in the AI race and getting unsolicited product advice from Justin Bieber. He posted on
that he hates the fact that the speech to text button stops your music if you hit it accidentally.
In the last week alone, Apple announced that four main execs would be leaving the company.
Alan Dye, the VP of Interface Design, is joining rival Meta.
Its general counsel, Kate Adams is retiring next year.
Lisa Jackson, its VP of Environment Policy and Social Initiatives, is also retiring next year.
And AI Chief John Giandrea is retiring next year.
And yesterday, the information reported that its semiconductor chief is also contemplating
his departure. It's a lot all at once for Apple, especially for a company that has had a grand
total of two CEOs since 1997. So what is going on? It probably leads back to AI, as other companies
have steamed ahead in the AI game. Apple keeps delaying its big Siri upgrade and has yet to put forward
a coherent strategy. It's also led to whispers that all the executive turnover is a signal that
the big Kahuna himself, Tim Cook, could be on the way out as well. Right now, prediction markets
have it at about 50-50 shot, he is still the CEO by the end of 2026.
Neil, a rather tumultuous stretch of brain drain for a company that isn't used to this level
of turbulence.
Another aspect that you have to bring in is just demographics.
A lot of these people, as you mentioned, have been at Apple for decades through the jobs
era, through the Tim Cook era, and he's now been there for well over a decade.
They're in their 60s or they're getting close to it, which means that, you know,
we're going to be there one day and we're going to say, yeah, I don't want to work
anymore. So I think a lot of it does, you can chalk up to the fact that people are just,
they're at retirement age. That said, the folks who aren't retiring in the leadership ranks
and also in the AI engineering ranks are going to one of two places. They're either going to
meta or open AI, which are two of Apple's chief rivals in this big technological race to develop
artificial intelligence, which many in the tech industry think is the next quote unquote
industrial revolution. So the fact that you have some of your best talent decamping for your
rivals at a time when everyone is racing to build the thing that will unlock what they think is
trillions of dollars worth of value. It is a little spooky. Think about what Apple is good at.
They're really good at interface design. They're really good at UI, UX. And if you are a meta and you're
trying to bring this new class of AI wearables online, you do want to poach Apple's talent. You do want
to lean on Apple's internal strength to, you know, build your own new vision for what AI
wearables and it will be. And then OpenAI is also kind of building an anti-Apple hardware team.
They're trying to actually redefine the smartphone era entirely. So they do want to bring some old
people from the smartphone era in to inform those decisions as well. So when you're creating a new
category of computer device, you do want to raid the old category as well. It just makes a lot of sense
that these people are poaching from Apple right now. And it stinks if you are Apple.
Zuck forever for over a decade. It said, I hate that he has a sense. He has a
said it, but he's thought, I hate the iPhone. I hate that I built my social media and I'm
beholden to the iPhone and Apple's devices. He thinks he's building the next iPhone or the next
smartphone or the next computing device, which is glasses. And then OpenAI's poaching of Apple
talent goes back to last year when Sam Altman paid over $6 billion to Aqua hire Steve Jobs's
best designer, which was Johnny Ive, who designed all of Apple's iconic products. They are
worked together to create some sort of AI device that we don't know exactly what it will look like.
But Open AI's poaching of Apple talent goes back years, so does Metas. And Apple is looking to the
future saying, where are we going to get this new pipeline of talent? Justin Bieber may have,
you know, Justin Bieber went on X. Everyone's like, why are you bringing Justin Bieber onto this?
And there is a point to this. So Justin Bieber made fun of this Apple interface where the send
button and the dictation button are the same thing. And I, and a lot of people hopped in to say,
yeah, Justin, like, you are right. Get Apple working on better UI. And my point here is that maybe,
you know, changeover or turnover is a good thing for Apple because there's some mistakes that it's made
in the past. It hasn't done so well in the AI race. So maybe getting some new fresh talent,
getting the old people out, getting some other people in could be, you know, something that
kicks, lights a little fire under them as they are far behind in the AI race.
It was very funny that people were saying,
Justin Bieber was already a top 10% product manager already.
His gripe was the fact that it stopped his music,
so he's coming from a very specific place,
but it was funny that maybe Jay Beaves is, you know,
heading to the upper ranks of Apple.
I do think the final point we have to make here is that compensation plays into
all of these decisions as well.
We have talked ad nausea about meta and Zuck laying out these gargantuan AI research
packages and Apple just hasn't kept pace with that. So sometimes they're being outbid by 4x, 5x,
these salaries they are offering their own internal workers. So one name to keep an eye on is Johnny
Saroja, who is Apple's chip chief. And apparently they are laying out the red carpet. They are
trying everything in their power to retain him because if Saroja leaves, that is a devastating
signal to Wall Street. It is one of their most important technical leaders remaining at the company.
so if they lose Saroja, a lot of warning bells are sounding at Apple.
All right, we're going to take a quick break and come back with our winners of the weekend.
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Welcome to our winners of the weekend, the segment where Neil and I picked two things that had
a better weekend than Ohio State haters. I won the pre-show game of Madden 07, so I'm up first,
and my winner is Tiny K-K cars because they might be coming to America. K-cars are a Japanese
vehicle class created back in the 40s in order to encourage mass car ownership.
They are very small, often less than half the weight of a standard U.S. car.
but have become ubiquitous in Japan for being cheap, maneuverable, and just plain cute.
For those reasons, they seem to have captured the imagination of none other than President Trump.
Returning from a recent trip to Japan, he posted,
I have just approved tiny cars to be built in America.
His infatuation seems to be tied to affordability.
A new K car in Japan costs around $10,000, while used one can go for as little as five.
Compare that to the average new car price in America, which just surpassed,
$50,000 for the first time, and you see the appeal. Now, before you start dreaming of a diminutive
road trip, there remains some major hurdles before K-cars can make it onto American roads, mostly
tied to safety regulations. But, Neil, the fact that we're talking about these tiny cars at all
feels like a win. Everyone seems to be infatuated with these tiny Japanese cars, whether from
President Trump all the way on down, they are so cute, they are so delightful. That said,
when you're talking about what Americans actually want to buy in terms of cars, it is not these.
They don't even want sedans.
Pretty much every carmaker has stopped making sedans for the North American market.
Ford only sells one actual car today.
That's the Mustang.
Chevy only makes one actual car sedan today.
That's the Corvette.
So there is very little.
People, yes, they are fun and cute to look at.
But when you're actually thinking about, hey, what do I want to drive on the road?
What do I want to drive on a highway?
And you go out in your car currently and you see SUVs and all these other heavy trucks on the road.
You're saying, actually, the tiny car is the last thing that I want if I want to keep my family safe.
It would take a rewriting of NHTSA rules.
Basically, they're just way too small.
They don't have basic features like a airbag sometimes or roll bars or things that just you have to have to drive on American roads today
to go along with the fact that cars are becoming bigger and heavier.
So even if you do fudge the safety regulations, would families want to endanger their family?
Because when you're going up against a, you know, Ford F-250 and you're in a K-car, suddenly it doesn't seem as cute anymore.
So yes, both from a consumer perspective, there's some headwinds, but also from a regulation perspective.
If you do want one, though, you can get one into the United States.
There is a measure that allows you, that is meant to accommodate classic car collectors that allows you to import certain cars.
So there were an estimated 7,500 K cars imported into the United States last year under this car collecting measure.
So it is possible to get one.
You probably won't be able to take it on the highway, certainly not, and barely any roads, unless there's this whole rewriting of the federal vehicle safety landscape, which Transportation Secretary Sean Duffy was asked about this after Trump said, we should get Japanese K cars on the roads.
He said, like, we're looking into it.
we're looking into it, but don't expect anything to happen soon.
That's the classic like boss underling.
Like, oh, sure, yeah, I'm definitely looking into this one, but it probably won't happen.
All right, my winner is Beeple, who's once again found himself at the center of the art world this
weekend for making anthropomorphize billionaire dog robots that poop out NFTs.
Okay, there's a lot there.
So let's break this down one by one.
Beeple, whose real name is Mike Winkleman, is the artist you may remember from selling an
NFT for $69 million back in the crypto speculation heyday of 2021.
That sale made him the third most expensive living artists in the world, and for many, signaled the top of the NFT bubble.
While the NFT bubble did pop spectacularly, Beeple has kept on grinding, and his latest piece is the talk of the town at Miami's Art Basel, the largest art fair in the United States.
Titled regular animals, Beeple's Project is a pen of quadruped robot dogs that are fitted with very realistic heads of famous painters like Picasso, Warhol, and Beeple himself, as well as billionaires like Elon Musk and Jeff Bezos.
The robot dogs are equipped with cameras that take pictures of what they're looking at.
And from time to time, they will stop walking around, enter poop mode, and go number two,
which in this case means they expel an image based on what the camera captured.
Since this is Beeple, we're talking about.
Hundreds of those prints come with a QR code that offers onlurkers a chance to own the image as an NFT.
It's all very bizarre, but Toby, I've seen this all over my social media,
and it's clear Beeple has a knack for going viral.
Is there anything more than just a surface level stunt here?
I think there is a deeper level, which is why I'm kind of on board with this project.
So if we go down the art history rabbit hole, Picasso and Moral reframed how people saw the world.
They were a big cultural driver of that.
Now people are saying that who shapes the global worldview at this point?
It's tech billionaires like Elon Musk and Mark Zuckerberg.
He said that they can do one simple algorithmic trick or tweak, and it will change how you are visually interacting with the world.
If Instagram starts showing more of one post than the other, that changes your environment.
So he's basically, by putting them all in a pen together, he's saying, here are the people changing our worldviews now.
It's not necessarily the artists of old, even though they're in the pen too.
It's now Elon Musk and Mark Zuckerberg.
And it's also really freaking creepy.
So, of course, people are going to pay attention to it.
People are going to pay attention to it.
And they are going to pay for it as well.
Each of these robot dogs, there were two per figure.
they were being sold for $100,000 a pop,
and they sold within the first hour they were there.
What was interesting to me is the ones that had people's face
sold before anyone else.
So people really were infatuated with this.
I would say the art critics were not at all.
Art news talked to one dealer
who described the work as decadent
in the way that signifies moral and cultural decline.
Called it a spectacle that panders to the crowd,
dodges complexity, disguises things,
ideas behind technological bombast.
Sure, it's nice that people care about it, but this whole project tramples on the art of
history of digital and video art and makes it a bit.
People has dealt with this kind of criticism for years, too, because he was creating
NFTs and sold one for $69 million, which people were like, what is going on?
We don't even know what an NFT is, and now he's one of the most expensive living artists in
the world.
So there does seem to be a divide between high culture and low culture.
The art critics hate it, but the regular people seem to get enough of it.
My mom actually went, and she said it's as creepy as they think.
You can see them turn and take a picture of you.
Apparently, an AI algorithm chooses which pictures do get pooped out, though.
And she says, no one pooped my picture out.
So maybe next time you've got to go to the weird performance robot dogs to get, you know, a selfie taken.
It's Monday.
So here are the events you need to know about in the week ahead.
Who's ready for a ray cut?
With the labor market stumbling, the Federal Reserve is a lock to slash interest rates at its meeting on Wednesday,
bringing borrowing costs to their lowest level since the fall of 2022.
Then, Chair Jerome Powell will hold a closely watched press conference to share his view on where
the economy is headed.
Also expect a lot of chatter about Powell's replacement when his term ends in May.
Trump has said Hull announced the next Fed chair in the next few weeks.
Despite the fact that it does look like a rate cut is all but assured at this meeting,
the Fed has been dealing with some problematic data gaps of late.
Remember, the Bureau of Labor Statistics canceled the October inflation in jobs report
and said only some of that data will make it into the November report.
So they're basing it mostly on vibes, not great hard data, very divided.
It's at the Fed or the college football playoff committee right there.
Yeah, we'll get to that.
Australian kids are getting their last TikTok scrolls in because come Wednesday,
the country is set to be the first in the world to ban teens from using social media.
The law requires that users must be at least 16 to have accounts for Instagram, Reddit, Snapchat,
TikTok, X, Twitch, and more, while allowing apps like Discord, Pinterest,
Roblox and WhatsApp, after regulators said those were used more for messaging or gaming.
So we pretty much every country is watching how this experiment will play out to inform their
own social media rules. And we certainly are going to talk about this later in the week,
but already stories of how kids are getting around these bands have been just flooding news wires.
People have been holding up pictures of Beyonce and skirting. People have been holding up Halloween
masks and skirting these bands. So a lot of the technology that are supposed to ensure that these kids
won't be able to access this problem, is being circumnavigated or circumvented, because these teens
are digital natives.
Like, they know how VPNs work.
They know how to get around stuff like that.
So you are right that it is one grand experiment that is happening in front of the world,
but you just can't beat the teens.
They're too smart.
Over in the Supreme Court, a landmark case will begin today that test the power of the president
to meddle with agencies set up by Congress.
Back in March, Trump fired Democratic FDC member Rebecca Slaughter years before her term
expires in 2029, which sparked challenges from groups who say he doesn't have the authority to do
that. This goes way beyond Trump. At stake is a 90-year legal precedent known as Humphreys' executor,
which shields the leaders of independent agencies from removal. If Trump wins his bid to fire
slaughter, then Humphreys could fall. This case is essentially about whether the administrative state,
which has been something that the Trump administration has been attacking for a while,
can remain insulated from who's in the White House, from politics themselves,
Or does it just become an extension of whoever's in leadership?
So it is a big precedent at stake here.
Can people, you know, do their jobs without fear of the White House meddling
if their policies differ from what the White House currently wants at that moment in time?
It will also have huge implications for whether Trump can fire one of the Fed governors, Lisa Cook,
which is another case that's going before the Supreme Court next year.
College football will dominate small talk across American offices this week
after 12 teams were selected to compete in the upcoming playoff with controversial inclusions and
snubs.
But no matter how messed up the system is, everyone can agree that Indiana is the story of the
season.
Historically bottom feeders in football, the Hoosiers defeated perennial powerhouse, Ohio
State to win the Big Ten Conference Championship, capping off one of the most remarkable
glowups in the history of the sport.
Their quarterback Fernando Mendoza is the heavy favorite to win the Heisman Trophy,
which will be awarded on Saturday.
Remember, I am college football team agnostic.
Last year, I chose a team, and I chose Indiana.
So who's really to thank here?
Kurt Signetti for turning the most losing program in college football history into the best team in the country,
or Toby Howell, the podcaster, for choosing them on Morning Brew Daily last year.
It's tough to say.
Very tough decision.
Kind of like what the suction committee had to do.
And there's a lot of outraged people.
I think everyone can agree that Indiana is a deserving number one.
It would really be amazing if they could make a deep run.
Notre Dame, who didn't get selected for the college.
college football playoffs took their ball and went home.
They were supposedly up for their, they are supposed to be up for bowl consideration.
They literally rescinded their name and say, we're not playing if we didn't make the
college football playoff.
BYU is also really mad, which is very funny to see them arguing their case on publicly on
social media right now.
So this is one of the great things in life, though, arguing about college football.
Okay, that is all the time we have.
Thanks so much for starting your morning with us.
Have a wonderful start to the week.
and a huge thank you to everyone who came to our live show on Thursday.
The energy in that room was insane and it exceeded all of our expectations.
We're already cooking up more events next year,
so if you missed out, there will be plenty more opportunities to hang out in real life.
If you want to get in touch, you can send a note to Morning Brew Daily at Morningbrew.com
or DM us on Instagram at MB Daily Show.
Let's roll the credits.
Emily Milliron is our executive producer.
Raymond Liu is our producer.
Our associate producers are Olivia Graham and Olivia Lake.
Yichinawa Ogu is our technical.
director hair and makeup is coming down with the cold so you gave it to me.
Devin Emory is our president and our show is a production of Morning Brew.
Great show today, Neil. Let's run it back tomorrow.
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