Warner Bros. Discovery’s games business was not considered a factor in Netflix’s acquisition deal of the company, the streaming giant’s co-CEO Gregory Peters has revealed during its latest earnings call.
That’s putting it a bit mildly, to be honest, as Peters described the game business as “relatively minor” in the grand scheme of things. The acquisition was announced earlier this week, and while regulars still need to approve it, there was no mention of the gaming side of things in the initial press release — and now we know why.
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.
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Now we’re super excited because some of those properties that they’ve built, Hogwarts is a great example of that, have 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 think that there’s definitely an opportunity there. But just to be clear, we haven’t built that into our deal model.
A report on Bloomberg earlier this week stated that Netflix considered buying a number of other companies prior to Warner Bros. Discovery, including video game publisher Electronic Arts.
Peters mentioned Hogwarts Legacy in the statement above, which is one of the biggest-selling video games of the past few years. Launched in February 2023 for PS5, PC, and Xbox Series X/S (and later coming to PS4, Nintendo Switch, and Xbox One), Hogwarts Legacy has sold over 34 million copies and generated over one billion dollars in revenue. Back in November 2024, it was announced that a sequel is now in development.
[Source – Netflix Earnings Call via Eurogamer]