Netflix co-CEO Gregory Peters revealed that the company's proposed acquisition of Warner Bros. did not factor in the value of its gaming division. Despite successes like Hogwarts Legacy, Peters described the games business as relatively minor. The $82 billion deal faces regulatory hurdles and competition from Paramount.
Netflix's Takeover Bid Overview
Netflix recently proposed an $82 billion deal to acquire Warner Bros. Studios, a major player in film, TV, and gaming. However, during a December 8, 2025, investor conference call, co-CEO Gregory K. Peters admitted that Warner Bros. Games was not considered in the initial valuation. "We actually didn’t attribute any value to that from the get-go because they're relatively minor compared to the grand scheme of things," Peters stated.
Warner Bros. Games' Portfolio
Warner Bros. Games oversees high-profile franchises including Batman (Arkham series), Harry Potter, Mortal Kombat, and Lego titles. Hogwarts Legacy, released in 2023, became the best-selling game in the U.S. that year, moving 34 million copies and generating billions in revenue. Other recent projects include MultiVersus and Suicide Squad: Kill the Justice League, though the division has faced studio closures and underperformance amid broader company challenges under CEO David Zaslav.
Peters expressed post-bid enthusiasm: "Now we are super excited because some of those properties that they've built—Hogwarts Legacy is a great example—have been done quite well, and we think that we can incorporate that into what we're offering." He highlighted opportunities with Warner's studios but clarified that gaming was not built into the deal model.
Netflix's Gaming History
Netflix has struggled in gaming, canceling a AAA multiplayer shooter and closing studios like Boss Fight Entertainment, behind the Squid Game: Unleashed mobile title. The company has shifted focus to casual mobile games, aligning with its streaming roots rather than console or PC ventures.
Deal Uncertainties
The acquisition is not assured, facing regulatory scrutiny and a rival $100 billion-plus bid from Paramount. This undervaluation raises concerns for Warner Bros. Games' developers and future projects, potentially limiting ambitions for series like Arkham or Monolith's Shadow of Mordor.