Netflix executives once debated bidding for Electronic Arts, Fox, and Disney, according to a Bloomberg report, before shifting focus to Warner Bros. The discussions stalled due to internal disagreements and worries about investor reactions. This comes amid larger industry mergers involving EA and Netflix.
Report Details
A Bloomberg investigation has uncovered that Netflix explored potential acquisitions of major entertainment companies, including video game publisher Electronic Arts (EA), prior to its current negotiations for Warner Bros. Studios. The streamer weighed options for EA alongside Fox and Disney but failed to reach a consensus among leadership. Concerns arose that pursuing such deals could negatively impact Netflix's relationship with investors, leading the company to pivot.
The timing of these considerations remains unclear, though the report highlights Netflix's evolving interest in gaming and media assets. Disney's history of acquiring studios like Pixar, Marvel, and Lucasfilm, including Fox's entertainment division in 2019, underscores the competitive landscape.
Broader Industry Context
These revelations occur against the backdrop of two significant proposed deals: Saudi Arabia's Public Investment Fund (PIF) leading a $55 billion acquisition of EA, and Netflix's $82 billion offer for Warner Bros. Both face regulatory hurdles and scrutiny. For EA, U.S. Senators Richard Blumenthal and Elizabeth Warren have voiced worries over potential 'foreign influence' from PIF's majority stake. In response, EA's recent regulatory filing asserts that the company would maintain full creative control.
If Netflix secures Warner Bros., it would oversee prominent gaming franchises such as Mortal Kombat, Batman, and Harry Potter. However, Netflix's gaming push has faced setbacks, including the 2024 cancellation of a AAA multiplayer shooter developed by a team with veterans from Halo and Destiny, and the October closure of Boss Fight Entertainment, creators of the Squid Game: Unleashed mobile title.
These developments signal shifting dynamics in the gaming sector, where streaming giants seek deeper integration with interactive entertainment.