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Netflix Shrugs Off Warner Bros. Game Studios in $82.7B Buyout: “Relatively Minor” to the Deal
December 11, 2025Netflix’s massive $82.7 billion acquisition bid for Warner Bros. barely acknowledges the existence of its gaming studios. On an earnings call, Netflix co-CEO Gregory Peters dropped the blunt truth: “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.”
Even though Warner Bros. Interactive Entertainment comes wrapped in the deal, gaming was missing in action from both the press release and the main event webcast. If you blinked, you missed it; gaming was a mere footnote.
Warner Bros. Games: A Struggling Giant
There’s a reason Netflix is brushing WB’s gaming business aside. Warner Bros. has been fighting an uphill battle in the games industry lately. In its first-quarter earnings for 2025, the company reported a brutal 48 percent drop in game revenue; no new releases, no new cash. By November, revenue was still sliding, down another 23 percent with, you guessed it, still no new titles hitting shelves.
The hits kept coming: Hogwarts Legacy’s planned expansion got cancelled. Rocksteady Studios, the team behind the Arkham games, faced layoffs after Suicide Squad failed to deliver. Monolith Production’s entire Wonder Woman game was axed. Multiversus, the brawler aiming to chase the Smash Bros. magic, was shut down. WB Games has taken one body blow after the next.
Yet, it’s not a dead end. Hogwarts Legacy became a monster hit, selling over 34 million copies according to a Bloomberg report. That puts it among the best-selling video games of all time. Rumour has it that a sequel is already brewing in the background.
Peters acknowledged these high points, saying, “Some of those properties that they’ve built, Hogwarts is a great example of that, have done quite well, and we think that we can incorporate that into what we’re offering.” Then he delivered a reality check: “But just to be clear, we haven’t built that into our deal model.” It’s clear Netflix expects little from Warner Bros.’ game division, at least on paper.
What Happens to Warner Bros. Gaming Talent?
Despite having studios like Rocksteady and others with proven talent, their fate is now caught in the wind. “They’ve got great studios and great folks working there. So we think that there’s definitely an opportunity there,” Peters admitted. But, without any concrete plans or value assigned, there’s little hope gaming will become a Netflix priority once the ink dries.
In June, Warner Bros. shook up its leadership and promised to double down on juggernaut franchises: Mortal Kombat, Harry Potter, DC, and Game of Thrones. But so far, nothing new has landed. Rocksteady is reportedly developing a new Batman game, following up on their acclaimed Arkham series. Whether Netflix will nurture projects like this or leave them stranded is totally unclear.
The entire situation gets even stickier with another twist: Paramount just lobbed in a public offer for Warner Bros. too, aiming to outgun Netflix’s “inferior” bid. The final owner of Warner Bros, and the future for its game studios remains up in the air.
For now, Warner Bros. games are just riding in the sidecar of a Hollywood megadeal. If you’re invested in WB’s next blockbuster or the jobs of its talented developers, hanging on to optimism may take some work.
