Following Warner Bros. Discovery's (WBD) announcement that it is exploring a potential split, including an outright sale, Netflix (NFLX) co-CEO Ted Sarandos denied any merger rumors during the company's Q3 earnings call on Tuesday.   「We have made it clear in the past that we have no intention of acquiring traditional media networks,」 Sarandos stated. 「This position has not changed.」   Just hours before Sarandos' comments, Warner Bros. Discovery indicated it had initiated a 「strategic alternatives assessment」 after receiving multiple unsolicited acquisition offers. This action has sparked speculation about a new wave of consolidation within the Hollywood media industry.   Reportedly, potential buyers under consideration include Paramount Global (PSKY), Comcast (CMCSA), and Netflix; however, none of these companies have responded to Yahoo Finance's request for comment. Sarandos’ assertion appears aimed at distancing Netflix from these rumors.   After Netflix's Q3 revenue and profits fell short of Wall Street expectations, the streaming giant’s shares dropped approximately 6% in after-hours trading. Nonetheless, Netflix provided an optimistic outlook for the current quarter and reiterated its full-year performance guidance, expecting revenue to reach between $44.8 billion and $45.2 billion.   Sarandos noted that despite other entertainment companies preparing for a new round of consolidation, Netflix remains focused on organic growth rather than mergers and acquisitions.   「Historically, we have preferred to ‘build’ rather than ‘buy,’」 he said. 「We believe there is ample room for growth without fundamentally changing this strategy.」   The co-CEO further revealed that while Netflix will continue to evaluate potential deals, each opportunity will be assessed against rigorous standards: for instance, whether the deal can enhance the company's entertainment content portfolio or strategic objectives, and if its value exceeds building similar capabilities in-house.   「To achieve our business goals, no deal is a ‘must-have,’」 Sarandos stated. 「We have the capability and will choose wisely.」   Netflix co-CEO Greg Peters pointed out that the company has weathered several waves of industry consolidation—from Disney's (DIS) acquisition of 21st Century Fox (FOXA) to Amazon's (AMZN) purchase of MGM, and the merger of Discovery Channel with Warner Bros.   「These mergers have not fundamentally altered the competitive landscape,」 Peters stated. 「Even as we observe some competitors potentially expanding through acquisitions, our perspective on the competitive landscape remains unchanged. Moreover, we believe such mergers do not alter the fundamental challenges faced by competitors.」   Conversely, Peters argues that the more challenging and significant work lies in 「daily cultivating core competencies,」 which includes producing global content and integrating new technologies such as artificial intelligence.   This focus also reflects Netflix's broad emphasis on technology—the company claims that technology enhances efficiency, personalization, and profitability.   「We are working to explore how to integrate the latest technologies, including AI and generative AI,」 Peters said. He emphasized that the goal is to create higher-quality product experiences to improve user acquisition and retention globally.   「AI will provide us with support,」 he added.   At this juncture, Netflix is strengthening its AI capabilities on multiple fronts. Earlier this year, Netflix confirmed it had used generative AI for the first time in original content production—utilizing the technology to accelerate visual effects work in the Argentine sci-fi series, 「El Eternauta.」   However, Sarandos emphasized that Netflix views AI as a complement to human creativity, not a replacement.   「Even with AI, if one lacks outstanding narrative skills, one cannot automatically become a great storyteller,」 he stated. The co-CEO further explained, 「We are not concerned that AI will replace creativity. Instead, we are very excited about how it can create tools and support creativity.」