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Good morning.

Warner Bros Discovery is shaking up the Aussie media scene, throwing a spanner in the works for Foxtel’s exclusive rights deal with HBO and for News Corp’s plans to sell its pay TV chain.

Capital Brief’s John Buckley reports that the US entertainment giant, which owns the studio behind hits like Game of Thrones and Succession, has begun preliminary talks with local media and telco firms about potential partnerships ahead of the launch of HBO’s streaming service Max next year.

Warner’s deal exploration talks with the likes of Optus, Telstra and Fetch, signals a potential shake-up that could jeopardise Foxtel’s hold on coveted HBO content, potentially impacting Foxtel’s value just as News Corp considers selling the pay TV operator.

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Market movers

CSL's annual results made waves on the ASX, but not in the way the biotech titan hoped. Despite a 20% profit surge and a dividend bump, CSL’s shares plummeted nearly 5%, marking their worst fall in a year.

The underwhelming performance in its Vifor iron business and soaring operational costs underscored that even the mighty CSL isn't immune to macro trends.

The quick sync

• Small businesses are falling behind in the economic recovery, according to a report by COSBOA and payments platform Square that show smaller enterprises are facing tougher conditions. (Capital Brief)

• Start-up founder Dean Freestone is suing the Victorian government’s Breakthrough Victoria, claiming he was unfairly dismissed from the medical technology company he established. (AFR)

• Fremantle Port, WA’s largest container port, is expected to grind to a halt Sunday as a small group of key workers walk off the job over a pay dispute. (AFR)

• The ACCC accepted a court-enforceable undertaking from TPG that it will not enter into agreements with Google to pre-install its search services as a default function on Android devices. (Capital Brief)

• Record sales for Temple & Webster raise hopes as CEO Mark Coulter says the shakeout in the furniture and homewares retail sector is over. (AFR)(Capital Brief)

Trading floor

M&A

• Universal Music Group (UMG) signed a global licensing deal with Meta, covering music use on platforms like WhatsApp and Instagram, and addressing fair compensation and AI-generated content. (Capital Brief)

• Wesfarmers and Macquarie Group are eyeing the $3bn I-MED diagnostic imaging business. (The Australian)

• Veolia has acquired Australian energy retailer Electricity In A Box, expanding its operations beyond waste management. (AFR)

• Pacific Current Group is selling part of its Victory Park Capital stake to Janus Henderson, with proceeds depending on final costs and consents. (Capital Brief)

• Rio Tinto is seeking to sell a stake in its Winu copper project in Western Australia, exploring partnership options while keeping open the possibility of full retention. (AFR)

• Orora rejected Lone Star's "opportunistic" takeover bid, saying it undervalues the company. (Capital Brief)

• Three bidders for Healius's diagnostic imaging unit are submitting final offers this week, though it's unclear if the $700m price target will be met. (The Australian)

• NEX Building Group has urged the ACCC to approve Stockland's $1.3bn purchase of Lendlease’s housing estate portfolio. (AFR)

• HopgoodGanim is expanding into WA by merging with Perth’s Butlers Lawyers and Notaries. (BNA)

Capital Markets

• Temple & Webster's record sales came with a profit drop as the company reinvested for growth, aiming for over $1bn in sales mid-term. (Capital Brief)

• Gumbuya World amusement park is seeking new investors as its owners, with Edison Partners' help, look to capitalize on its post-lockdown revenue growth. (AFR)

• Seek's revenue and earnings fell, impacted by reduced ad volumes and a $141m impairment from its Chinese investment in Zhaopin. (Capital Brief)

VC

• Main Sequence Ventures-backed fermentation startup Cauldron is mulling a US plant as it raises a Series B, but CEO Michele Stansfield says it is also considering building a unique facility in Australia. (Capital Brief)

• Recycling startup Sircel secured $5m in 'patient capital' earlier this year. It has big ambitions for its chemical based technology to keep e-waste out of landfill. (Capital Brief)

• Kinoxis Therapeutics raised $14.5m in Series B funding to address symptoms in diseases like dementia. (Startup Daily)

• Beauty startup Aglow raised A$1.25m to expand its subscription-based beauty service platform. (Startup Daily)

People moves

• Starbucks appointed Chipotle's Brian Niccol as CEO after Laxman Narasimhan's sudden departure following pressure from activist investors. (Capital Brief)

The watercooler