[UPDATE - February 27, 2026] The bidding war is over: Netflix has officially declined to match Paramount Skydance's final offer, paving the way for a $111 billion acquisition of Warner Bros. Discovery. We've covered the full story in detail here.
[ORIGINAL STORY] Today, Netflix announced that it has reached an agreement to acquire Warner Bros. Discovery's Studio and Streaming assets (HBO Max, HBO, its film, television, and gaming studios) for $72 billion (with a total company evaluation of $82.7 billion).
As you may recall, Warner Bros. Discovery was formed following the merger of AT&T's WarnerMedia division with Discovery, which was announced on May 17, 2021, and officially completed on April 8, 2022. Around a year ago, however, WBD executives decided to split the division into two separate units: the more profitable Streaming & Studios and the less profitable Global Linear Networks, with the split expected to be complete by mid-2026.
Ever since that announcement, speculation ran rampant that the goal was to sell off the more appealing Streaming & Studios to the highest bidder, and that's exactly what happened today. Previous rumors suggested that Sony might have been interested. As of last month, WBD execs were officially evaluating different offers from multiple parties. It's not surprising that Netflix won, given its financial resources.
There was the lingering doubt of whether such an acquisition would include WB's gaming studios. Surprisingly, it seems that the answer is positive. This means Avalanche Software (Hogwarts Legacy), NetherRealm Games (Mortal Kombat, Injustice), Rocksteady Games (Batman: Arkham, Suicide Squad: Kill the Justice League), and TT Games (LEGO) will go under Netflix's control. The WB Games division was restructured earlier this year, following the closure of Monolith Productions (Middle-earth: Shadow of Mordor/War), PlayerFirst Games (MultiVersus), and San Diego Studio, as well as the departure of its CEO, David Haddad.
The goal was to focus entirely on the four big owned franchises: DC, Game of Thrones, Harry Potter, and Mortal Kombat. Whether Netflix agrees with the strategy remains to be seen, though. Their gaming efforts so far have been mixed. They acquired Oxenfree developer Night School Studios and a few mobile developers, including Spry Fox, which was recently sold back to its original owners. In 2022, they expanded their mobile game offerings available through the subscription model and also founded a studio to develop a triple-A action RPG designed by several industry veterans. However, they closed down that studio about a year ago.
Right now, it's anyone's guess what their gaming strategy will be. Below, you can find prepared statements from Netflix and WB executives regarding the acquisition, which is expected to close within twelve to eighteen months.
Ted Sarandos, co-CEO of Netflix, stated:
Our mission has always been to entertain the world. 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.
Greg Peters, co-CEO of Netflix, added:
This acquisition will improve our offering and accelerate our business for decades to come. Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.
David Zaslav, President and CEO of Warner Bros. Discovery, 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. 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.
About the author: With over two decades of experience in gaming journalism, Alessio Palumbo has led the gaming vertical at Wccftech since August 2015. He started working at a young age for Italian websites like Everyeye.it, Gamestar.it, Nextgame.it, and Multiplayer.it before kickstarting the indie English-language publication Worlds Factory as its founder and Editor in Chief. In the last decade, he has coordinated the overall output of Wccftech's gaming section, managed PR relations, assigned reviews, produced daily news coverage, edited gaming content as needed, and delivered game reviews. Arguably, his trademark content is the long series of exclusive developer interviews that have been cited by Wikipedia and by the biggest news media and gaming publications. His passion for technology also makes him knowledgeable when it comes to gaming hardware and tech. His favorite genres include RPGs, MMORPGs, and action/adventure games.
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