M&A News: Netflix Acquires Ben Affleck’s AI Firm after Ditching WBD

Video streamer Netflix NFLX -0.13% ▼ announced that it has acquired InterPositive, a filmmaking technology company founded by Academy Award winner Ben Affleck. More specifically, the company develops artificial intelligence tools designed to assist with movie production. The financial terms of the deal were not disclosed. Notably, the acquisition comes as the entertainment industry becomes more open to using AI in filmmaking. In the past, many people in Hollywood were worried that AI could threaten creative jobs or raise issues around intellectual property.

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However, attitudes toward AI appear to be changing, as more studios are now exploring how the technology can support storytelling rather than replace creative workers. For example, Disney DIS -0.97% ▼ recently revealed plans to allow OpenAI to use characters from franchises such as Star Wars, Pixar, and Marvel in its Sora AI video generator. Similarly, Netflix Chief Content Officer Bela Bajaria said that new technology should help increase creative possibilities rather than limit them.

According to Bajaria, the goal is to give filmmakers more tools while still keeping writers, directors, actors, and crews at the center of the creative process. Interestingly, InterPositive’s technology is designed to assist filmmakers with complex production challenges. For instance, the system can help with missing shots or incorrect lighting while still preserving the project’s artistic vision. In addition, following the acquisition, Affleck will join Netflix as a senior advisor.

Is Netflix a Good Stock to Buy Now?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 30 Buys, nine Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average NFLX price target of $114.94 per share implies 16.5% upside potential.

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