In a staggering piece of news this Friday, streaming giant Netflix has announced that it has entered an agreement with Warner Bros. Discovery to acquire Warner Bros. in a deal that's valued at roughly $82.7 billion — an equity value of $72 billion.
Netflix is specifically acquiring Warner Bros.' Streaming & Studios company, which it created in June 2025 and includes including Game of Thrones, the DC Universe, Harry Potter, Lord of the Rings, and platforms such as HBO and HBO Max and Warner Bros. Games.
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The media company doesn't mention WB's gaming division at all in its press release. However, Game Developer has confirmed with a WB spokesperson that "the recently-restructured video game division... will be joining Netflix."
Currently, Warner Bros. Games includes a number of studios such as Rocksteady (Batman: Arkham series), NetherRealm Studios (Mortal Kombat), TT Games (LEGO), Portkey Games, and Avalanche Studios (Harry Potter), along with WB's studios in Boston, Montréal, New York, and San Francisco.
It's a huge deal that Netflix expect to take around 12-18 months, but that's if it goes through. We know how long other huge acquisitions have taken. Plus regulators are more than likely to get involved. Paramount had previously attempted to purchase the studio in October, which was rejected.
If successful, Warner Bros. shareholders will receive $27.75 a share along with stock in Netflix and the company expects to make savings of around $2-$3 billion by the third year.
The deal could have a huge impact on these studios, and is yet another example of consolidation in the video game industry at a time when layoffs, game studio sales, and closures are rampant.
In fact, earlier this week, reports emerged that Netflix was selling Spry Fox, developer of Cozy Grove, back to the owners.
We'll update this story if more information comes to light.
[source ir.netflix.net, via gamedeveloper.com]
Comments 50
It is not looking good.
Wow. Just wow. I never expected something like that to happen in my lifetime 🙁.
Fingers crossed as few people as possible will be affected by this if it goes through or even better someone stops it - how I wish more companies acted the way Nintendo do when it comes to acquisitions (and honestly several other aspects as much as they're also far from perfect although to be fair nobody is), but of course that isn't a way to make big money in the short time which is all they clearly care about instead of growing yes, but in a healthy way...
"In order to keep up our excellent service, we are increasing your subscription fee to € 30,00 per month. Please understand."
Netflix should go out of business. Hate their business model and I hate streaming.
Yay! Down with that pesky competition! The less players in the scene, the better!
The wider effects this would have on not just gaming but the whole entertainment industry is really concerning. Cinemas will likely be hit in a very serious way as Netflix will focus on making everything streaming based. It will also create less competition as it’s a major consolidation.
A huge move for streaming services.
@Elektrogeist1287
"Anything I don't like shouldn't exist!"
What a s***show the Warner Bros. Discovery merger has been.
Guess I'll have one combined bill from Netflix now. And I'll have to cut ties with my Disney+, Hulu, and HBO Max bundle deal now.
This will be bad for the industry. It's not a done deal yet though, so hopefully it won't happen.
There goes HBO?
I’m sure this wonderful deal won’t result in a whole heap of layoffs…
Yay for more market concentration ... this was inevitable in some form, but it is still simply bad.
Not the worst of the prospective buyers, but is that really any consolation as we watch the continued monopolization of entertainment?
Instead of breaking up such business structures … another market regulation failure if this goes through.
@Zaruboggan I just didn’t want Paramount to get it.
Please, for the love of God do not allow this merger.
All Batman games will now only be available on mobile as part of Netflix Games.
I don't have a strong opinion on the merger, but with HBO max maybe dying and Hulu in the process of dying and the Funimation app recently dying, it's been interesting watching streaming services going from only a couple big ones to 50 zillion different services and now they are consolidating again.
@rockodoodle all the options are bad. HBO Max is without a doubt the best streaming service and all the other companies are worse. I pray this doesn't go through.
The company that has never put out a good original movie or show thinks they can shepard some of the biggest IPs ever.
This is the worst company to buy them outside some random Chinese company
@Dimjimmer Warner Bro was/is a dying company… It surprised they have survived this long after the decade they’ve had. They would have not survived another 10 years. This at least buys them another couple until Netflix realize they was worthless and tries to resell…
Well, on the bright side now any future Arkham games can’t be worse than that Suicide Squad game.
…right? Please?
Here comes the microtransaction and pay-to-play models.....
And here I thought things couldn't get worse for one of my favorite franchises, Mortal Kombat.
I am now just more pissed a Saudi Prince didn't want WB over EA.
99% of their streaming videos are garbage. It's like shopping at the dvd bargain bin at walmart. I hear lately they've been pushing some woke agenda with their shows aimed at children. Personally I find that disgusting.
Netflix was the neutral option: just the same bad things continuing to happen. Skydance Paramount is the bad one: things immediately getting much much worse. The REAL bad sign though was that COMCAST were the GOOD Option.
We can only hope that, in the confusion, a lion's share of the gameinf assets somehow end up at Wade Rosen's Atari (though now I'm remembering that his brother is the head of games at Nickelodeon, under Paramount, and my mind is putting two and two together and-)
Oh.
Oh no
so no more quality tv shows from hbo. this is awful for the future.
@FragRed This was my thought immediately. What does this mean for movie theatres? Will WB movies not be in theatres anymore? Or will they just keep them as separate brands? Theatre under WB, straight to streaming Netflix?
It's not a great move, but it's not like the games division of Warner Bros. could get much worse really.
@Truegamer79 What's a 'woke agenda'?
@SBandy1 not at all what I said, kid.
@Truegamer79 you’re just rambling nonsense.
Woo, more super consolidation. Because we all know how beneficial this is for the entertainment industry. Especially when it comes to jobs and creativity.
I'm worried for Lego Batman Legacy of the Dark Knight now
@Elektrogeist1287
It very much was.
Or you were just wishing hundreds of thousands out of jobs because you don't like streaming services?
How nice of you!
@Skunkfish "Woke" = "whatever I don't like"
@Gen4Fan Don't be. Most everything in development will still happen. Netflix should be a boon for the video game industry in the fact we should see plenty more DC games on the horizon.
I don't understand all the doom and gloom from so many people on this. Considering the other potential buyers, this is easily the best outcome.
@Truegamer79 woke agenda? What like E. T or The Goonies, i like these films about people who actually care for each other.
Enjoy your tariffs.
This is huge news! How is Netflix going to handle HBO if the deal is accepted? I imagine they would shut it down in favor of offering all content in Netflix which is a big plus for the platform since Netflix infra is a lot better. At the same time, this much content would likely require a price increase…
As for gaming division, I don’t really see them changing anything about it. It’s more of a bonus than the actual reason for this offer, I imagine. For us, diversifying the revenue with games could help hold the price of Netflix sub.
@Elektrogeist1287
Then why are people canceling Netflix in droves? Look it up. I'm not the only one fed up with it. Kids are confused enough without people pushing their ideals on others with their subliminal messages.
@Fake-news
Yes let's just assume that everyone against woke loves Tarrifs. I couldn't care less. I don't buy from outside America anyway.
This is Netflix going after Xbox
@Truegamer79 You buy from outside America. You're just too dense to know it.
Next you'll be telling me kids shouldn't learn Arabic numerals in schools.
@JohnnyMind netflix is the worst option.
Look what they did to the witcher tomb raider splinter cell and devil may cry shows.
All if the sudden it had the biggest drop in viewers.
Also people that think everyone will keep there job will be looking at this later like microsoft just cutting 50.000 jobs in 1 year.
@Truegamer79 like the splinter cell .rap show.
Antitrust laws must be strengthened and strongly enforced to prevent these sorts of things from happening. Of course, the increasingly highly corrupt Trump regime in the United States is very unlikely to engage in such ethical behaviour.
We will all lose choices and quality will diminish as this process continues.
first netflix ruined castlevania by butchering the source material for season 2 now this.
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