Netflix did not even consider Warner Bros. Games as something relevant in the Warner acquisition.
During an investor call on December 8, Netflix co-CEO Gregory Peters stated that Warner’s gaming division, responsible for franchises such as Hogwarts Legacy, Arkham, and Mortal Kombat, was simply not considered in the calculation of the US$ 83 billion offer value.
According to Peters, the company’s games were “relatively insignificant compared to the broader picture” of the deal.
The statement caused surprise, since Warner Bros. Games, despite facing recent difficulties, still owns some of the most profitable IPs in the market.
Hogwarts Legacy, Arkham, and Mortal Kombat did not factor into the offer
Netflix’s claim was particularly puzzling because Warner’s gaming division has impressive numbers. Hogwarts Legacy was the best-selling game of 2023 in the U.S., outperforming even Call of Duty and selling more than 34 million units in its first year — a billion-dollar performance.
In addition, the company also owns established franchises such as Batman Arkham, Mortal Kombat, and the long-running LEGO game series, which have generated massive revenue for nearly two decades. Even so, Netflix maintained its position: none of these assets were considered in the deal’s valuation.
This situation unfolds amid a turbulent period for Warner Bros. Games, marked by recent studio closures, internal restructuring, and releases that failed to meet expectations, such as Suicide Squad: Kill the Justice League and the new version of MultiVersus.
Netflix is still trying to figure out how to enter the gaming world
To better understand Netflix’s stance, it’s necessary to look at its own history in the sector. The company invested heavily in games in recent years, attempting to operate on PC and consoles as well, but pulled back after repeated failures. Today, the focus is exclusively on mobile games — a move more aligned with the streaming platform’s profile.
According to Peters, although Warner delivered “great work in the gaming sector,” this did not change the financial model of the offer. Even so, the executive said he sees potential in the acquired intellectual properties, once again citing Hogwarts Legacy as an example.
For Netflix, however, this “potential” seems limited to the mobile space. Franchises like LEGO, Harry Potter, and Batman could easily generate casual mobile titles aligned with the company’s current strategy. However, there are no signs that more complex series, such as Arkham, Shadow of Mordor, or Monolith projects, would be revived.
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Uncertain future for Warner Bros. Games studios and franchises
The lack of explicit valuation of the gaming division raises concerns about the future of the studios that remain active within Warner. Peters acknowledged that there are “great teams and outstanding talent” at the company, but reiterated that this did not impact Netflix’s acquisition offer.
If the acquisition moves forward, the most likely scenario is an increasing focus on mobile games based on the most popular properties — while larger-scale projects, such as a new Batman Arkham, seem increasingly distant.
The transaction is still ongoing, but Netflix’s message is already clear: the gaming market, at least within the scope of the acquisition, was not a priority.
