Netflix to acquire Warner Bros. and its gaming division in $82.7 billion deal

Netflix has confirmed a deal to acquire Warner Bros., bringing the streaming giant exclusive access to franchises including Harry Potter, DC Universe, and Game of Thrones, along with several major video game developers, in its biggest acquisition to date.

The details:

• Netflix's co-CEOs Ted Sarandos and Greg Peters announced the acquisition would combine "Netflix's innovation, global reach, and best-in-class streaming service with Warner Bros.' century-long legacy of world-class storytelling," allowing the company to expand its entertainment portfolio and reach broader audiences. Other companies going up against the streaming giant in a bidding war included the likes of Comcast and Paramount Skydance.
• The acquisition also gives Netflix ownership of several game studios, including NetherRealm (Mortal Kombat), Rocksteady (Batman: Arkham), Avalanche Software (Hogwarts Legacy), and TT Games (LEGO video games). Should the company continue supporting the developers, this is a significant expansion to Netflix’s gaming division, which has focused primarily on smaller titles rather than major AAA games in recent years.
• However, both Netflix and Warner Bros’ gaming divisions have struggled in recent years. Warner Bros. confirmed that its gaming revenue had declined by a whopping 48% following the commercial failure of Suicide Squad: Kill the Justice League alongside a lack of releases. Meanwhile, Netflix restructured its gaming business earlier this year, resulting in layoffs and the sale of studio Spry Fox to its original owners.