[UPDATE - February 27, 2026] After Netflix declined to match Paramount Skydance's sweetened $31-per-share bid, the path is now clear for a $111 billion takeover of Warner Bros. Discovery. All the details are here.
[ORIGINAL STORY] Netflix's agreement with Warner Bros. Discovery to acquire the Streaming & Studios division for $82.7 billion also included the WB Games division, with its studios, assets, and whatnot. However, the biggest VOD streaming media service didn't even mention it in the announcement or in the subsequent investor call.
That was already telling, but yesterday, Netflix executives finally commented on WB Games during the UBS Global Technology Conference. Answering a question, Netflix Co-CEO, President, and Director Gregory K. Peters clarified that the company didn't actually attribute any value to the gaming division during the deal because they're 'relatively minor'.
And maybe worth going back again to sort of how we thought about the deal and building our valuation model, while they definitely have been doing some great work in the game space, we actually didn’t attribute any value to that from the get-go because they’re relatively minor compared to the grand scheme of things. Now we are super excited because some of those properties that they’ve built, Hogwarts Legacy is a great example of that, have been done quite well, and we think that we can incorporate that into what we’re offering. They’ve got great studios and great folks working there. So we believe that there’s definitely an opportunity there. But just to be clear, we haven’t built that into our deal model.
Now, Peters also said that the addition of WB Games would accelerate the company's existing plans in the gaming space. However, it is clear that Netflix does not really believe WB Games to be a particularly significant asset, despite having recently produced a massive success like Hogwarts Legacy, which sold over 34 million units (as of March 2025) and was the best-selling game of 2023, managing to beat even Call of Duty: Modern Warfare 3 and breaking a 14-year streak that either a Call of Duty game or a Rockstar game topped sales charts in the United States.
Granted, WB Games faced some hardships with the flop of Suicide Squad: Kill the Justice League and the closure of Monolith Productions (Middle-earth: Shadow of Mordor/War), Player First Games (MultiVersus), and San Diego Studio, but there's still a lot of untapped potential there, especially after the restructuring that refocused the company on its four key IPs: DC, Game of Thrones, Harry Potter, and Mortal Kombat. It would perhaps warrant a little more consideration than what Netflix is giving them.
The Warner Bros. Discovery deal is far from closed, anyway, especially after Paramount Skydance made its hostile bid of $108.4 billion to get the entire company, not just the Streaming & Studios side. Unlike Netflix, Paramount, through Skydance, already owns several triple-A game development studios, such as Skydance Interactive, which has released several high-profile VR games, and Skydance New Media, Amy Hennig's studio working on Marvel 1943: Rise of Hydra (which was recently delayed to the latter half of 2026) and an untitled Star Wars game. Netflix, on the other hand, closed down its only triple-A game studio last year.
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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