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Dec 6, 2025 4:00 AM

Analyst Says Netflix-Warner Bros Merger Is About More Than Movies— It's An AI Play

Netflix Inc.‘s (NASDAQ:NFLX) $82.7 billion acquisition of Warner Bros. Discovery (NASDAQ:WBD) is a bet on artificial intelligence and chips as much as movies and shows, according to Melissa Otto, head of research at S&P Global Visible Alpha.

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According to Otto, the deal can't be fully understood without considering Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) technology ambitions, Fortune reported.

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Otto told Fortune that a central question for the future of entertainment is who controls premium video at scale, as generative AI increasingly creates and personalizes moving images.

She described this collection ...