Netflix buys Warner Bros., potentially upgrading its gaming ambitions with new studios and IP

Today, Netflix announced that it has agreed to acquire Warner Bros., the massive entertainment company that includes the major streaming service HBO. While this is a huge consolidation of two of the largest entertainment companies in the world when it comes to movies and television, this also gives Netflix a much larger presence in gaming. WB Gaming has had both hits and misses over the last few years, including the flop Suicide Squad: Kill the Justice League and the massive success of Hogwarts Legacy, which went on to be the best-selling game of the year it was released. Meanwhile, Netflix has been struggling to get a foothold in the space. Red Dead Redemption recently joined the service, and the Life is Strange studio, Don’t Nod, is reportedly working on something for Netflix. However, the stream also abandoned its AAA development plans by shutting down a studio around this time last year.

Netflix is set to acquire Warner Bros., which could dramatically shift Netflix’s gaming plans

The deal must still pass regulatory review in the US and other countries, so it may be months before anything is finalized, and there’s no guarantee it will go through. But this deal would give Netflix access to Warner Bros.' extensive list of properties, including Batman, Superman, and other DC heroes, Harry Potter, Game of Thrones, and more. Along with this potential acquisition, Netflix would acquire a handful of notable game development studios. Rocksteady, known for the Batman: Arkham games; NetherRealm Studios, the team behind Mortal Kombat; TT Games, the studio behind many of the LEGO video games; and Avalanche Software, the team behind the massive hit Hogwarts Legacy, all fall under Warner Bros. If Netflix and Warner Bros. can handle this well, they could have a flourishing gaming division in the next few years.

Of course, this does not guarantee that all these studios will remain at Netflix in the future. In massive transactions like this, layoffs and restructuring are bound to occur at all levels of both companies. Since Microsoft acquired Activision Blizzard in a historic 2023 deal, thousands of employees have been laid off across both companies.

In a press release from Netflix, Warner Bros. Discovery CEO David Zaslav said, “Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most.” The massive company is reportedly still going through with plans to split the Warner Bros. and Discovery brands. From the press release, “This separation is now expected to be completed in Q3 2026.” This is expected to occur before the planned acquisition, meaning Netflix is not acquiring Discovery as part of this transaction.

Should this acquisition go through, it will undoubtedly have a massive impact on the entertainment space. Between Netflix and HBO Max’s streaming audiences and Warner Bros.' box-office success, it will be a difficult company to compete with. According to a September Variety article, Warner Bros. had seven consecutive films open above $40 million, such as A Minecraft Movie, Sinners, and Superman. Will these movies come to Netflix, remain in theaters, or both? For now, we will have to wait to see what happens next.

Red Dead Redemption

May 18, 2010

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