In a groundbreaking move, Netflix has announced its agreement to acquire Warner Bros., a deal valued at $82.7 billion. This acquisition includes HBO Max, HBO, and Warner Bros.’s film, television, and gaming studios, marking a significant expansion for Netflix in the entertainment industry.
Warner Bros. Discovery: A Brief History
Originally formed through the merger of AT&T’s WarnerMedia and Discovery, Warner Bros. Discovery (WBD) was officially recognized on April 8, 2022. Last year, WBD decided to split into two units: Streaming & Studios and Global Linear Networks, with the split planned for completion by mid-2026. Speculations indicated the Streaming & Studios unit was being prepped for sale, and today, Netflix emerged as the successful bidder.
Impact on Gaming Studios
Contrary to some expectations, Netflix’s acquisition includes Warner Bros.’s gaming studios. This means that top-tier developers like Avalanche Software (known for Hogwarts Legacy), NetherRealm Games (famed for Mortal Kombat and Injustice), Rocksteady Games (creators of Batman: Arkham and Suicide Squad: Kill the Justice League), and TT Games (LEGO series) will now operate under Netflix’s umbrella. Earlier restructuring in WB Games saw a focus shift to major franchises such as DC, Game of Thrones, Harry Potter, and Mortal Kombat.
Future of Netflix Gaming
Netflix’s gaming endeavors have been varied, with acquisitions like Night School Studios and ventures into mobile gaming. However, their strategy remains uncertain as they explore opportunities in the gaming sector. With this acquisition, Netflix positions itself to potentially redefine its gaming landscape. The deal, expected to finalize within 12 to 18 months, has been met with optimism from both Netflix and Warner Bros. executives, highlighting a shared vision for enhancing entertainment options.
Netflix’s acquisition of Warner Bros. for $82.7 billion, including its gaming studios, marks a pivotal expansion in the entertainment landscape.