Netflix Didn’t Attribute Value to Warner Bros. Games in Acquisition Because it is “Relatively Minor”

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Netflix recently announced it’s buying Warner Bros. for $82.7 billion, but didn’t initially discuss Warner Bros.’ gaming business. At a conference this week, Netflix’s co-CEO, Gregory Peters, explained that the gaming division wasn’t highlighted because it represents a small portion of the overall acquisition.

Peters acknowledged WB Games has achieved successes, like with Hogwarts Legacy, but considers them small compared to the larger entertainment landscape. He explained this likely contributed to Netflix initially undervaluing the gaming division. However, Peters expressed optimism about the future, stating Netflix is eager to collaborate with WB Games once the acquisition is finalized, and he sees a clear potential for growth.

Honestly, we’re revisiting how we initially looked at the deal and our valuation. We didn’t really factor in their gaming work at first because, while good, it seemed small compared to the bigger picture. But now we’re really excited! They’ve done some fantastic work, like with Hogwarts Legacy, and we think we can really leverage that. They have some amazing studios and people, and we see a real opportunity here. Just to be clear, though, we haven’t changed our initial deal numbers to reflect this yet.

Warner Bros. Games is actually home to many different development studios, including well-known names like NetherRealm Studios (known for Mortal Kombat), Rocksteady Games (the creators of the Batman: Arkham series), and Avalanche Software (who made Hogwarts Legacy). However, the gaming division hasn’t been doing as well lately, largely because games designed as ongoing services – like Suicide Squad: Kill the Justice League and MultiVersus – haven’t been very successful.

Several live-service games haven’t succeeded, and this has significantly impacted some game studios. A report from February suggested these failures contributed to the closure of Monolith Productions, Player First Games, and WB Games San Diego. The most prominent closure was Monolith Productions, which also meant the cancellation of their unreleased Wonder Woman game.

When announcing the studio’s closure, the company acknowledged Monolith’s impressive track record of creating memorable games and fan experiences. They expressed deep appreciation for the dedication of the three teams and thanked all employees for their hard work. Despite the difficult decision, the company stated they are committed to returning to the creation of excellent games for their fans, driven by their talented studios, and achieving financial success and growth starting in 2025.

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2025-12-10 14:41