Needham keeps a Buy rating and $150 price target on Netflix (NFLX) but warns that buying Warner Bros. (WBD) would put $83B of additional value at risk of being disrupted by GenAI storytelling. Without Warner, Netflix is more global, more nimble, more tech-first, and has more flexibility with the Hollywood unions, the analyst tells investors in a research note. Needham further notes that Warner’s employee count of 35K is 2.5-times larger than that of Netflix, suggesting that its culture and operating practices will be hard for Netflix to overcome.
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