Netflix’s recent acquisition of Warner Bros. Discovery’s Streaming & Studios division for $82.7 billion has sparked significant industry chatter. Unexpectedly, this massive deal also includes the WB Games division, a move that Netflix initially downplayed. Despite the inclusion of game studios and assets, Netflix chose not to highlight this facet in its announcement or during an investor call.
Netflix’s View on WB Games
At the UBS Global Technology Conference, Netflix Co-CEO Gregory K. Peters addressed WB Games’ role in the acquisition. Peters explained that the gaming division wasn’t given much weight in Netflix’s valuation model. He emphasized that while WB Games has achieved notable success, such as the acclaimed Hogwarts Legacy, its impact was considered minor in the broader context of the deal. Nevertheless, Peters expressed excitement about integrating some of WB Games’ properties into Netflix’s offerings.
The Significance of WB Games
Peters noted that adding WB Games could speed up Netflix’s gaming ambitions, although the sector wasn’t seen as a major asset. The division’s success with Hogwarts Legacy, which sold over 34 million units by March 2025 and was the top-selling game of 2023, demonstrates its potential, having outperformed titles like Call of Duty: Modern Warfare 3.
Despite some setbacks, including the failure of Suicide Squad: Kill the Justice League and the closure of several of its studios, WB Games is refocusing on key franchises like DC, Game of Thrones, Harry Potter, and Mortal Kombat. This shift indicates untapped opportunities that Netflix might explore, even if they haven’t yet recognized its full potential.
Challenges and Opportunities Ahead
The deal’s completion remains uncertain, as Paramount Skydance has made a competing bid of $108.4 billion for Warner Bros. Discovery. Paramount already possesses several high-profile game studios, unlike Netflix, which shuttered its only triple-A game studio last year. The competitive landscape raises questions about how Netflix will position itself in the gaming market amid these developments.