Netflix has announced it’s acquiring Warner Bros. in a deal worth $82.7bn, including its game studios.
Back in June, Warner Bros. Discovery announced the company would be split between Streaming & Studios (including Warner Bros. Motion Picture Group, DC Studios, and HBO among others) and Global Networks (including sports and news TV brands like CNN and TNT Sports).
It’s the former half that Netflix is set to acquire, with the transaction closing in 12-18 months once the split takes place, subject to regulatory approvals. At the time of the split announcement, David Zaslav, president and CEO of Warner Bros. Discovery, said it will “invigorate each company by enabling them to leverage their strengths and specific financial profiles. This will also allow each company to pursue important investment opportunities and drive shareholder value.”
Warner Bros.’ game studios includes the likes of Rocksteady (the Batman Arkham series), NetherRealm Studios (Mortal Kombat), and Avalanche Studios (Hogwarts Legacy).
It’s currently unknown how the gaming division of Warner Bros. will be impacted by the Netflix acquisition. While gaming isn’t mentioned specifically in Netflix’s press release, “games and consumer product and experiences” were included during a webcast on the news. Hogwarts Legacy at the least was a huge revenue driver and a sequel is extremely likely, while DC fans will surely be hopeful Rocksteady is reportedly working on a new Batman game to follow its celebrated Arkham Knight series.
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“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix. “By combining Warner Bros.’ incredible library of shows and movies – from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends – with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”
Netflix co-CEO Greg Peters added the acquisition will “improve our offering and accelerate our business for decades to come”.
“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,” said Zaslav. “For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
As for Warner Bros. Games, in June it initiated a dramatic leadership shift as part of a refocus on its biggest franchises, like Mortal Kombat, DC, Harry Potter, and Game of Thrones. It follows a turbulent time for the company, which saw a 48 percent decrease in games revenue earlier this year due to not releasing any games.
That followed a reported cancellation of a planned expansion to Hogwarts Legacy; Suicide Squad flopping and Rocksteady suffering layoffs; the shutdown of brawler Multiversus; and the cancellation of Monolith Productions’ Wonder Woman game.
