Netflix says Warner Bros.’ game studios are ‘relatively minor’ as streamer moves to acquire company

Netflix co-CEO Gregory Peters has said Warner Bros.’ game studios weren’t a factor in its $82.7 billion acquisition bid, calling them “relatively minor” as doubts grow over the division’s future.

Netflix considers Warner Bros.’ game studios to be a “relatively minor” factor in its offer of $82.7 billion to acquire the company.

The comment comes at a sensitive moment for Warner Bros. Games, which has endured a year of cancellations, layoffs and stalled releases.

Speaking on the Netflix’s latest earnings call, co-CEO Gregory Peters said the company “didn’t attribute any value” to Warner Bros.’ gaming arm, describing it as “relatively minor compared to the grand scheme of things”.

The statement contrasts sharply with the scale of the studios involved, which include Rocksteady (Batman Arkham), Monolith Productions (F.E.A.R.), NetherRealm (Mortal Kombat) and Avalanche Software (Hogwarts Legacy).

Still, Warner Bros.’ recent financial performance helps explain the stance, as games revenue fell 48 per cent in early 2025 and another 23 per cent in the most recent quarter, driven by a lack of new launches.

The downturn has been compounded by high-profile setbacks: the cancellation of Monolith’s Wonder Woman, layoffs at Rocksteady after Suicide Squad: Kill the Justice League underperformed, the closure of Multiversus, and the scrapping of a Hogwarts Legacy expansion.

However, Hogwarts Legacy itself remains a blockbuster success, selling more than 34 million copies and securing a sequel in development.

Peters said Netflix still sees potential in Warner Bros.’ IP, pointing to Hogwarts as a standout example.

But he stressed that gaming upside had not been factored into the acquisition model, underscoring that it is not a core focus of the deal.

He said: “They’ve got great studios and great folks working there. So we think that there’s definitely an opportunity there.

“But just to be clear, we haven’t built that into our deal model.”

The acquisition itself is not settled, as Paramount has submitted a competing offer, calling Netflix’s bid “inferior” and setting up a potential bidding war.

For Warner Bros.’ game studios – and projects like Rocksteady’s reported return to Batman – the future now hinges on which buyer prevails, and how much priority they place on gaming.