"The news that Netflix is trying to buy Warner Bros. didn't ever look like it would be good for game players, but a recent investor call by the streamer suggests things are a whole lot worse than we previously imagined. Netflix co-CEO Gregory Peters told investors that when it came to Warner's gaming division, it didn't even factor it into the $83 billion dollar deal. It was apparently considered to add nothing to the company's overall value, because "they're relatively minor compared to the grand scheme of things.""
"Warner Bros. Games hasn't exactly shone of late, with multiple closures of extremely talented teams, and the recent flops of MultiVersus and Suicide Squad: Kill the Justice League, but it's still hardly minor. For one, Hogwarts Legacy was the best-selling game of 2023 in the U.S., more popular that Call of Duty, selling 34 million copies in its first year. That's billions of dollars in revenue. Then you've got the Arkham franchise, Mortal Kombat, plus the infinite money machine that is every single Lego game from Star Wars to Harry Potter to Batman. Yes, it's suffered as much as every other arm of the company under David Zaslav, but it's not something you'd immediately write off as worthless."
"However, that's the price Netflix put on Warner Bros. Games when bidding for the whole company. "While they definitely have been doing some great work in the game space," said Gregory Peters on the December 8 call (thanks Pocket Gamer), "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.""
Netflix assigned no added acquisition value to Warner Bros. Games in its $83 billion bid, according to company statements. Netflix previously attempted PC and console gaming initiatives, failed to monetize them, and shifted focus to mobile casual games. Warner Bros. Games has closed studios and produced recent underperforming titles, but also delivered massive commercial hits. Hogwarts Legacy sold 34 million copies in its first year and led U.S. sales in 2023, generating billions. The publisher controls franchises such as Arkham, Mortal Kombat, and numerous lucrative Lego titles, representing significant revenue potential.
Read at Kotaku
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