TECH

Netflix mulled buying EA before Warner Bros. acquisition, as it grows AAA games library
Before the proposed Netflix Warner Bros. acquisition, the streamer pondered bidding for EA. Bloomberg details how its leadership had second thoughts after considering stock evaluations. EA’s AAA games include sports franchises, but Warner Bros. Games may be a better complement to Netflix content.
The potential Netflix $82 billion deal to acquire Warner Bros. could boost the streaming giant’s AAA gaming portfolio. WB Games has produced titles for lucrative movie and TV franchises like Harry Potter and Batman. However, according to a paywalled Bloomberg report, it previously expressed interest in EA.
As 2025 winds down, the new biggest potential acquisitions of the year appear to be the $55 billion deal for EA by Saudi Arabia's Public Investment Fund and other investors and the more recent proposed $82 billion agreement for Netflix to buy Warner Bros. Studios. Now, a new report suggests that Netflix once considered buying EA and two other movie studios before the Warner Bros. negotiations came together.
According to Bloomberg, Netflix executives previously debated whether the streamer should place bids for EA, Fox, and Disney. However, the management team reportedly couldn't agree on a deal and feared that its interest in those companies would hurt its standing with investors.
The report doesn't include the details about when Netflix considered these acquisitions, especially since Disney is usually the company that buys other studios including Pixar, Marvel, and Lucasfilm. Disney purchased Fox's entertainment assets in 2019 following an extended approval process from government agencies around the world.
Neither the Warner Bros. nor the EA deals are guaranteed to go forward, since both of them have to win regulatory approval after facing heavy scrutiny. Both, however, have major implications for the video game industry. If the EA deal is completed, Saudi Arabia's PIF will reportedly gain majority control of the company. Senators Richard Blumenthal and Elizabeth Warren have raised their concerns about "foreign influence" on EA. In a regulatory filling last month, EA claimed it would retain creative control of the company.
As for Netflix and Warner Bros., the deal would leave the former in charge of the Mortal Kombat, Batman, and Harry Potter video game franchises. The streamer demonstrated greater ambition for the gaming industry until 2024, when it shut down a AAA multiplayer shooter from a team that included Halo and Destiny veteran Joe Staten. In October, Boss Fight--the studio behind Netflix's Squid Game: Unleashed mobile game--was closed by the streamer.
The Lucas Shaw Bloomberg article reveals that Netflix considered bidding for “every major asset put up for sale, including Electronic Arts Inc. and Fox.” Although it seems less likely, the company even contemplated a Disney takeover. However, executives balked at paying too much for stocks that were previously available at lower prices. The report doesn’t specify when Electronic Arts first appeared on Netflix’s radar.
Would gamers have benefited from a Netflix EA deal? In September, a group that includes Saudi Arabian investors proposed an Electronic Arts buyout. The development raised concerns about the publisher’s future. Analysts have predicted cost-cutting that could involve job losses and more reliance on generative AI. With the latest news, gamers are now debating whether Netflix would have been a preferable suitor.
To this point, the offering of Netflix games has been viewed as lackluster by critics. Most titles are basic mobile-quality experiences that don’t cater to dedicated gamers. The recent addition of Red Dead Redemption attracted attention, but may not lure players away from the PS5, Xbox, or Switch 2.
The Warner Bros. Games lineup would align with the streamer’s TV and movie prowess. It’s easier to see how it could tie in upcoming projects like the Hogwarts Legacy sequel to existing content. On the other hand, with EA, agreements to make Lord of the Rings or Star Wars titles have often come and gone. The publisher’s most profitable releases are sports franchises led by EA Sports FC and Madden NFL.
Regardless of how the subscription service evolves, not all followers believe it can effectively manage AAA games. In 2024, Netflix decided to shutter Team Blue, which had talent that worked on Halo, God of War, and other major titles. The move foreshadowed a focus on lower-budget smartphone endeavors. The potential Netflix Warner Bros. acquisition and curiosity with EA suggest it still lacks a clear direction.
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