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Welcome to the big leagues, Netflix

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Welcome to the big leagues, Netflix

Warner Bros. has an infamous history of being bought by other companies and then quickly ending up back on the market after its new owners realize how difficult it is to capitalize on a legacy production studio’s assets. Those challenges are part of what doomed WB’s mergers with AOL and AT&T, who bought the studio in attempts to reinvent themselves. But WB’s latest acquisition deal — this time with Netflix for $83 billion — feels like it has the potential to turn out differently because of how much of a major player within the entertainment industry the streamer has become. It also signals just how far Netflix has come: in less than two decades the streamer has gone from tech upstart to subsuming one of the most storied studios in Hollywood.

Assuming that the deal receives regulatory approval, Netflix will soon own the entirety of Warner Bros.’ (but not Discovery Global’s) assets, which includes HBO / HBO Max, DC Studios, and the legacy studio’s television and film production arms. This would make Netflix the corporate home to many more of the world’s biggest entertainment franchises, like Game of Thrones and Harry Potter, and give the streamer a much larger operational footprint as a proper studio. Discovery Global — which retains ownership of networks including CNN, the Discovery Channel, and TLC — is set to become an independent corporate entity by Q3 in 2026.

This strategic bifurcation and sale of assets was obviously WBD’s desired outcome when the company first announced earlier this year that it planned to split Warner Bros. and Discovery back into two units. Back then, CEO David Zaslav had not yet announced that the company was open to acquisition offers. But you could glean as much from looking at the way that WBD was struggling to turn a profit with its linear cable networks.

Even though WBD managed to pay down a substantial portion of the $55 billion debt it inherited when Discovery bought WarnerMedia, the merged company’s flagging cable TV assets were a major factor in it receiving a significantly downgraded credit score earlier this year. That debt — a holdover from AOL’s disastrous merger with Time Warner — loomed over WBD for the entirety of Zaslav’s tenure as CEO.

A blend of money problems, misguided rebrands, and multiple rounds of layoffs left WBD in a very precarious position that made selling itself off to the highest bidder one of its only viable options to appease shareholders. Those challenges might also be difficult for Netflix to deal with, but this situation feels like it could shake out very differently for a handful of key reasons.

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Unlike previous mergers where Warner Bros. was gobbled up by traditional tech giants and telecoms, the new deal is coming at a time when Netflix has long since established itself as a Hollywood power player. In addition to acquiring IP that goes on to become hits, the streamer has built out a robust production infrastructure to spin up wholly original projects of its own. And with many of the platform’s subscriber-generating projects like Stranger Things and Squid Game coming to an end, it’s easy to understand why it wanted to scoop up Warner Bros.’ sizable library of films and series. Netflix doesn’t have the strongest track record of building its own franchises — remember Rebel Moon? — and that’s exactly what it’s getting with WB.

Though Netflix feels like a better acquisition partner compared to Warner Bros.’ previous owners, this is still a consolidation and these kinds of mergers always come with casualties. And it is likely that we will soon start hearing about layoffs as Netflix begins dealing with internal redundancies created by its absorption of Warner Bros.’ employees and operations. But what is much less clear is how the newly merged studio will go about releasing its new projects.

In 2021 during the covid-19 pandemic’s height, WBD’s decision to debut movies on HBO Max as opposed to theaters prompted directors like Christopher Nolan to denounce the company for becoming “the worst streaming service.” Though box office numbers still haven’t returned to pre-pandemic levels, theaters have reopened, and breakout hits like Warner Bros.’ A Minecraft Movie and Superman features have made it clear that there is a demand to see movies on the big screen. Netflix has experimented with very limited theatrical releases that transparently read as plays to qualify its movies for major industry awards. But it has still primarily been a streaming company in the years since it got out of the DVD game.

Unlike MGM, which was on the decline when Amazon bought it, Warner Bros. has had a very strong track record with its recent theatrical releases. Netflix has said that it “expects” to keep putting Warner Bros.’ movies in theaters, but co-CEO Ted Sarandos has signaled that the company is thinking about shortening its theatrical windows in order to “meet the audience where they are quicker.”

“I’d say right now, you should count on everything that is planned on going to the theater through Warner Bros. will continue to go to the theaters through Warner Bros. and Netflix movies will take the same strides they have,” Sarandos said this week in a call with industry analysts.

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Netflix has also made abundantly clear that it is open to cutting production costs by using generative AI. The company has not mandated that its collaborators use the technology as part of their production workflows, but it is easy to imagine gen AI becoming a bigger part of the studio now that it has taken on all of the projects Warner Bros. has in development.

The more glaring concern to come out of the new merger is the way that this could impact competition between the major studios and streaming platforms. Netflix has effectively replaced Warner Bros. as one of the Big Five, which will likely change the entertainment industry’s power dynamics. But streaming customers will probably feel these shifts more directly as Netflix and its competitors settle into a new status quo.

Netflix’s prices could go up yet again under the auspice that the service has become more premium with Warner Bros.’ offerings. It’s still not clear how Netflix will handle the HBO / Max brands long term. The company has said that it thinks “HBO and HBO Max also provide a compelling, complementary offering for consumers,” but it would not be surprising to see those brands ultimately going the way of Hulu, which has been turned into a section within Disney Plus.

It has been years since Netflix was a rowdy upstart fighting to be taken seriously. But even though the company has already cemented itself as the world’s biggest TV / movie streamer, this new deal will take it to a different level of prominence. The Netflix / WBD merger will undoubtedly result in changes — some of them bad — that reverberate through the entire entertainment landscape.

But as tumultuous as things will likely feel in the immediate future, it doesn’t seem likely that Netflix will end up trying to sell off Warner Bros. in a couple of years. Acquisitions of this scale aren’t the company’s usual MO, but it has been bullish about wanting Warner Bros. since the studio went on sale. If the deal goes through, Netflix is undoubtedly in the big leagues — now it has to prove it belongs.

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Judge sides with Anthropic to temporarily block the Pentagon’s ban

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Judge sides with Anthropic to temporarily block the Pentagon’s ban

After Anthropic’s weeks-long standoff with the Pentagon, the company won one milestone: A judge granted Anthropic a preliminary injunction in its lawsuit, which sought to reverse its government blacklisting while the judicial process plays out.

“The Department of War’s records show that it designated Anthropic as a supply chain risk because of its ‘hostile manner through the press,’” Judge Rita F. Lin, a district judge in the northern district of California, wrote in the order, which will go into effect in seven days. “Punishing Anthropic for bringing public scrutiny to the government’s contracting position is classic illegal First Amendment retaliation.”

A final verdict could be weeks or months out.

Anthropic spokesperson Danielle Cohen said in a Thursday statement, “We’re grateful to the court for moving swiftly, and pleased they agree Anthropic is likely to succeed on the merits. While this case was necessary to protect Anthropic, our customers, and our partners, our focus remains on working productively with the government to ensure all Americans benefit from safe, reliable AI.”

“I do think this case touches on an important debate,” Judge Lin said during the Tuesday hearing. “On the one hand, Anthropic is saying that its AI product, Claude, is not safe to use for autonomous lethal weapons and domestic mass surveillance. Anthropic’s position is that if the government wants to use its technology, the government has to agree not to use it for those purposes. On the other hand the Department of War is saying that military commanders have to decide what is safe for its AI to do.”

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On Tuesday, Judge Lin went on to say, “It’s not my role to decide who’s right in that debate… The Department of War decides what AI product it wants to use and buy. And everyone, including Anthropic, agrees that the Department of War is free to stop using Claude and look for a more permissive AI vendor.” She added, “I see the question in this case as being … whether the government violated the law when it went beyond that.”

It all started with a memo sent by Defense Secretary Pete Hegseth on Jan. 9, calling for “any lawful use” language to be written into any AI services procurement contract within 180 days, which would include existing contracts with companies like Anthropic, OpenAI, xAI, and Google. Anthropic’s negotiations with the Pentagon stretched on for weeks, hinging on two “red lines” that the company did not want the military to use its AI for: domestic mass surveillance and lethal autonomous weapons (or AI systems with the power to kill targets with no human involvement in the decision-making process). The rollercoaster series of events that followed has included a barrage of social media insults, a formal “supply chain risk” designation with the potential to significantly handicap Anthropic’s business, competing AI companies swooping in to make deals, and an ensuing lawsuit.

With its lawsuit, Anthropic argues that it was punished for speech protected under the First Amendment, and it’s seeking to reverse the supply chain risk designation.

It’s rare, and potentially even unheard of until now, for a US company to be named a supply chain risk, a designation typically reserved for non-US companies potentially linked to foreign adversaries. Anthropic’s designation as such raised eyebrows nationwide and caused bipartisan controversy due to concerns that disagreeing with a presidential administration could potentially lead to outsized retribution for a business in any sector.

Anthropic’s own business has been significantly affected by the designation, according to its court filings, which say that it has “received outreach from numerous outside partners … expressing confusion about what was required of them and concern about their ability to continue to work with Anthropic” and that “dozens of companies have contacted Anthropic” for guidance or information about their rights to terminate usage. Depending on the level to which the government prohibits its contractors’ work with Anthropic, the company alleged that revenue adding up to between hundreds of millions and multiple billions could be at risk.

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During Tuesday’s hearing, both companies had a chance to respond to Judge Lin’s questions, which were released in a document the day prior and hinged on matters like whether Hegseth lacked authority to issue certain directives and why Anthropic was named a supply chain risk. The judge also asked, in her pre-released questions, about the circumstances under which a government contractor could face termination for using Anthropic’s technology in their work — for instance, “if a contractor for the Department uses Claude Code as a tool to write software for the Department’s national security systems, would that contractor face termination as a result?”

On Tuesday, the judge also seemed to admonish the Department of War for Hegseth’s X post that caused a lot of widespread confusion per Anthropic’s earlier court filings, stating that “effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic.”

“You’re standing here saying, ‘We said it but we didn’t really mean it,’” Judge Lin said during the hearing, later pressing on the question of why Hegseth wrote the above barring contractors from working with Anthropic instead of just simply designating Anthropic as a supply chain risk.

In a series of questions on Tuesday, Judge Lin asked whether the Department of War plans to terminate contractors on the basis of their work with Anthropic if it’s separate from their work with the department, and a representative for the Department of War responded, “That is my understanding.”

Judge Lin asked, “Let’s say I’m a military contractor. I don’t provide IT to the military. I provide toilet paper to the military. I’m not going to be terminated for using Anthropic — is that accurate?” The representative for the Department of War responded, “For non-DoW work, that is my understanding.” But when the judge asked whether a military contractor providing IT services to the Department of War, but not for national security systems, could be terminated for using Anthropic, the representative for the Department of War did not give a concrete answer.

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During the hearing, Judge Lin cited one of the amicus briefs, which she said used the term “attempted corporate murder.” She said, “I don’t know if it’s ‘murder,’ but it looks like an attempt to cripple Anthropic.”

“We are continuing to be irreparably injured by this directive,” a lawyer for Anthropic said during the hearing, citing Hegseth’s nine-paragraph X post.

In a recent court filing, the Department of Defense alleged that Anthropic could ostensibly “attempt to disable its technology or preemptively alter the behavior of its model either before or during ongoing warfighting operations” in the event it felt the military was crossing its red lines — a theoretical situation that the Pentagon said it deemed an “unacceptable risk to national security.” The judge’s pre-released questions seem to challenge that statement, or at least request more information on it, stating, “What evidence in the record shows that Anthropic had ongoing access to or control over Claude after delivering it to the government, such that Anthropic could engage in such acts of sabotage or subversion?”

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Drone food delivery launches in New Jersey

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Drone food delivery launches in New Jersey

NEWYou can now listen to Fox News articles!

You place a food order, check your phone, and instead of a driver pulling up, a drone lowers your meal to your front yard. That scenario is already playing out in the Garden State. But before you get too excited, this is still a limited test.

Grubhub just launched New Jersey’s first drone-powered food delivery pilot, and it is getting plenty of attention. The three-month program kicked off on March 18 in Green Brook, just a few miles from Middlesex. If you live within about 2.5 miles of the location, you may be able to try it yourself.

Even better, you will not pay anything extra to choose the drone option.

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YOUR DOORDASH ORDER MIGHT ARRIVE FROM THE SKY AS DRONE DELIVERIES TAKE OFF
 

Grubhub launches a three-month drone delivery test in New Jersey, offering faster drop-offs with no added cost. (Grubhub)

How the drone delivery program works

The program is based out of Wonder’s Green Brook location, which operates a multi-restaurant kitchen. That means your order can come from one of 15 different food concepts, all prepared in the same place.

Here is how it works step by step:

  • You order through the Grubhub app
  • You select drone delivery if you are eligible
  • Your food is prepared and secured by trained staff
  • A drone flies it along a pre-approved route
  • The order is lowered safely to the ground using a tether

You can track everything in real time, just like a regular delivery. It feels familiar, but the final step looks very different.

Why this could be faster than your usual delivery

Timing matters when you are hungry. That is where drones may have a real advantage. Unlike drivers, drones do not deal with traffic, stoplights or parking. They fly directly to your location using optimized flight paths.

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Grubhub says deliveries should arrive faster than traditional methods. While that will vary based on conditions, the goal is simple. Less waiting, more eating. This test will help the company see if that promise holds up in real neighborhoods.

AIR TAXIS IN THE US COULD LAUNCH THIS SUMMER
 

New Jersey residents within range can order food by drone, with real-time tracking and tethered drop-offs. (Grubhub)

The tech behind the delivery drones

The program uses the DE-2020 drone from Dexa, a company that specializes in autonomous delivery systems.

This is not a hobby drone. It is a fully automated aircraft built for commercial use.

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Key features include:

  • FAA-certified operations for safety and compliance
  • Secure communication systems during flight
  • Controlled drop-off using a tether system
  • Pre-planned routes to reduce noise and disruption

Before each flight, crews check that food is packaged and secured properly. That step helps prevent spills or issues mid-air. In short, there is a lot more going on behind the scenes than a simple takeoff and landing.

We reached out to Grubhub, and a spokesperson shared the following statement:

“Our partnership with Dexa represents a major step forward in Grubhub’s commitment to delivery innovation,” said Abhishek “PJ” Poykayil, SVP of customer delivery operations at Wonder and Grubhub. “By connecting Grubhub’s marketplace expertise, Wonder’s innovative mealtime platform, and Dexa’s expansive drone technology, we’re proud to introduce a faster and more efficient way for New Jersey diners to experience food delivery without compromising safety or reliability.”

We also reached out to Dexa for more insight into the technology behind the program. CEO and founder Beth Flippo shared the following with CyberGuy:

“At Dexa, we’re proud to be powering the underlying autonomous technology that enables this new generation of on-demand delivery. Our partnership with Grubhub brings together their industry-leading logistics network with our advanced autonomy platform, which is designed to safely navigate complex environments, optimize real-time routing, and operate reliably without the need for continuous human intervention. This is a meaningful step toward a future where autonomous systems are woven seamlessly into everyday life, from delivering food and goods to supporting transportation, infrastructure and critical services. As consumers continue to expect faster, more efficient and more sustainable options, autonomy will play a central role in meeting those expectations at scale.”

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FORGET DRONES, THIS STREET-SMART ROBOT COULD BE FUTURE OF LOCAL DELIVERIES
 

Autonomous drones designed by Dexa deliver meals from a central kitchen, bypassing traffic in a new suburban pilot program. (Grubhub)

Why companies are pushing drone delivery now

This move is not random. It is part of a bigger shift in how companies think about delivery. You and I want speed, convenience and reliability. At the same time, businesses want to reduce costs and scale faster. Drone delivery sits right in the middle of that.

It removes many of the delays tied to traditional delivery. It also opens the door to new models, especially in suburban areas where distances are manageable.

We are already seeing this play out in other parts of the country. Companies like Wing, backed by Google’s parent company Alphabet, have been testing and expanding drone deliveries for food, retail and small packages in select U.S. markets.

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This New Jersey test is another step in that direction, and it shows how quickly the space is evolving.

What this means to you

Even if you are not in Green Brook, New Jersey, this still matters. Here is why:

You may get faster deliveries

If this works, shorter delivery times could become the new normal.

You could see more delivery options

Apps may soon offer choices like driver, robot or drone depending on your location.

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It could change delivery costs

Right now, there is no added fee. In the future, pricing models may shift based on speed and demand.

Your neighborhood may see more drones

That raises questions about noise, safety and privacy that communities will need to address.

This is not only about food. The same technology could expand to groceries, retail and even medical supplies.

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Kurt’s key takeaways

It is easy to see drone delivery as some sort of cool experiment. But something bigger is starting to take shape right above us. For the first time, the sky is becoming part of everyday delivery. Today it is takeout. Tomorrow it could be groceries, last-minute essentials or even urgent supplies. If this technology proves reliable, and we get comfortable with it, the way you get what you need could change faster than you expect. So the next time you hear a faint buzz overhead, you may want to look up. It might not be a plane. It could be your dinner on the way. The real question is not if drones will become part of daily life. It is how soon you will be tracking one to your doorstep.

Would you trust a drone to deliver your next meal? Why or why not? Let us know by writing to us at Cyberguy.com

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Netflix is raising prices again

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Netflix is raising prices again

Netflix’s prices just went up, with its cheapest, ad-supported tier now reaching $8.99 / month (up from $7.99 / month), according to an updated support page spotted earlier by Android Authority. The standard and premium plans are also getting a hike, going from $17.99 to $19.99 / month and $24.99 to $26.99 / month, respectively.

Netflix didn’t share its reasoning for the price hike this time around, as it last cited delivering “more value for our customers.” It’s also unclear when the price hike will go into effect for existing subscribers. The Verge reached out to Netflix with a request for comment but didn’t immediately hear back.

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