Netflix came incredibly close to pursuing some of the biggest names in entertainment and gaming before landing on their record-breaking Warner Bros. Discovery acquisition. According to a Bloomberg report published December 7, 2025, Netflix leadership actively debated making offers for Electronic Arts, Fox, and Disney before executives ultimately decided those deals posed too much risk. The revelations provide fascinating insight into just how aggressive Netflix’s expansion ambitions have become and why they believe Warner Bros. represents the sweet spot between value and strategic fit.
The Deals That Almost Happened
Netflix management considered acquiring nearly every major entertainment asset that came on the market over recent years. Electronic Arts stood out as particularly intriguing given the gaming giant’s portfolio of sports franchises like Madden NFL, FIFA (now EA Sports FC), NHL, and massive properties like The Sims and Battlefield. Fox’s entertainment assets and Disney’s unparalleled content library also made it onto Netflix’s acquisition wishlist at various points.
However, the executive team struggled to reach consensus on any of these potential blockbuster deals. The biggest concern centered on investor perception and stock price impact. Netflix trades at a significantly higher valuation multiple than traditional media companies, and executives worried that overpaying for assets valued at lower multiples would send the wrong message to Wall Street. There was genuine fear that pursuing these companies could tank Netflix’s stock price and damage their standing with investors who have rewarded the company’s streaming-focused approach.
The timing discussions around these potential acquisitions remain unclear, particularly regarding Disney. Disney has historically been the acquirer rather than the acquired, having successfully purchased Pixar, Marvel, Lucasfilm, and Fox’s entertainment assets in 2019 after an extensive global regulatory approval process. The fact that Netflix even considered attempting to buy Disney speaks to how dramatically the streaming giant’s ambitions have expanded.
Why EA Was Off the Table
The Electronic Arts consideration became moot in September 2025 when EA announced it would be acquired by Saudi Arabia’s Public Investment Fund, Silver Lake, and Affinity Partners in a massive $55 billion deal. The all-cash transaction valued at $210 per share represented a 25% premium and would become the largest leveraged buyout in history if completed. The deal will take EA private, ending its 36-year run as a publicly traded company.
For Netflix, missing out on EA may have been a blessing in disguise. The company’s gaming strategy has been inconsistent and troubled. In 2024, Netflix canceled a AAA multiplayer shooter being developed by a team with Halo and Destiny veterans. In October 2024, the streaming service shut down Boss Fight, the studio behind Squid Game: Unleashed mobile game. Netflix announced a new four-pillar gaming strategy in July 2025 focused on narrative games, multiplayer party games, kids games, and mainstream licensed titles while explicitly scaling back on AAA and indie game publishing.
EA would have represented a fundamentally different bet, bringing console and PC gaming expertise that Netflix lacks. The sports licensing alone (NFL, NHL, Formula 1, MLB, UFC, PGA) would have opened entirely new revenue streams. But the $55 billion price tag and operational complexity of managing traditional game development studios likely made executives nervous, especially given Netflix’s track record of struggling to find an audience for its existing game offerings.
Warner Bros Emerged as the Winner
On December 5, 2025, Netflix announced the deal that finally made it across the finish line. The streaming giant agreed to acquire Warner Bros. Discovery’s studios and streaming operations for $82.7 billion including debt, or $27.75 per share. The offer combines $23.25 in cash with $4.50 in Netflix stock, giving Warner Bros. shareholders both immediate liquidity and upside potential if Netflix stock continues climbing.
Netflix Co-CEO Ted Sarandos described the acquisition as transformative, stating it would accelerate business for decades to come by combining Netflix’s global streaming platform with Warner Bros.’ legendary content library and production capabilities. The deal provides Netflix with approximately 300 million subscribers access to massively valuable intellectual property including DC Comics franchises, Harry Potter, Lord of the Rings, and HBO’s premium content reputation.
Critically for gaming, the Warner Bros. acquisition includes the entire Warner Bros. Games division with studios like NetherRealm (Mortal Kombat, Injustice), Rocksteady (Batman Arkham series), Avalanche Software (Hogwarts Legacy), and TT Games (LEGO franchises). This gives Netflix an established gaming footprint without the astronomical price tag and sports licensing complexities that EA would have required.
The Paramount Problem
Netflix’s Warner Bros. deal didn’t go unchallenged. On December 8, 2025, Paramount (now under Skydance Corporation) launched a hostile $108.4 billion counter-offer at $30 per share in all-cash. Paramount CEO David Ellison argued his bid provides shareholders $17.6 billion more in immediate cash than Netflix’s stock-heavy proposal.
Sarandos quickly pushed back, expressing confidence Netflix’s deal will close and criticizing Paramount’s claimed $6 billion in synergies as code for massive job cuts. The Netflix CEO positioned his company as the buyer that will create jobs and value rather than slash headcount to justify acquisition math. Netflix also argues that once Warner Bros. Discovery spins off unwanted cable networks, shareholders will receive additional value that makes their lower upfront offer ultimately worth more.
The bidding war highlights the stakes involved. Warner Bros. represents decades of premium content, established franchises spanning film, television and gaming, and production infrastructure that would take competitors decades to replicate organically. For Netflix, it’s the acquisition that balances ambition with execution risk in ways EA, Fox, and Disney could not.
What This Means for Gaming
The Bloomberg report reveals that Netflix seriously weighed becoming a major gaming platform operator through EA before ultimately deciding that path carried too much uncertainty. Instead, Warner Bros. Games provides a middle ground solution – established studios with proven franchises but without the sports licensing obligations and hardcore gamer expectations that come with EA properties.
Netflix has been transparent about gaming struggling to find its audience on the platform. Most Netflix subscribers don’t even know the service offers games, and engagement numbers remain disappointingly low despite featuring award-winning indie titles. The four-pillar strategy announced in July 2025 acknowledges these realities by focusing on narrative experiences, party games, kids content, and mainstream licensed titles rather than chasing the AAA blockbuster market or indie darlings that don’t drive subscription value.
Warner Bros. Games fits this strategy perfectly. Properties like Mortal Kombat, Batman, Harry Potter, and LEGO games have mainstream recognition and appeal. These are franchises casual audiences understand and might actually discover through Netflix’s interface. Compare that to EA’s Battlefield or Dragon Age franchises which primarily attract dedicated gamers who already own consoles and wouldn’t subscribe to Netflix specifically for game access.
Regulatory Hurdles Remain
Both the Netflix and Paramount offers face significant regulatory scrutiny. Either acquisition creates an entertainment behemoth with unprecedented control over film, television, streaming, and gaming content. Antitrust regulators around the world will examine whether consolidating this much IP and production capacity in one company’s hands harms competition and consumer choice.
The process will take time. Netflix expects 12 to 18 months for regulatory approval if their deal survives Paramount’s hostile bid. Warner Bros. Discovery shareholders must decide by Paramount’s tender offer deadline of January 8, 2026, whether the higher cash offer or Netflix’s strategic vision represents better long-term value. Even after a winner emerges, government agencies may demand concessions, asset sales, or behavioral commitments before approving the transaction.
FAQs
Did Netflix actually try to buy Electronic Arts?
Yes, according to Bloomberg’s report, Netflix executives debated making an offer for EA. However, leadership couldn’t reach consensus on the deal and worried about negative investor reaction. EA subsequently agreed to be acquired by Saudi Arabia’s PIF, Silver Lake, and Affinity Partners for $55 billion in September 2025.
Why didn’t Netflix buy Disney?
Netflix considered Disney as a potential acquisition target but executives couldn’t agree on pursuing the deal. The primary concerns were paying too much for an asset trading at a lower valuation multiple than Netflix and the negative message that would send to investors. Disney’s market capitalization and complexity also made it an exceptionally difficult acquisition to execute.
What gaming studios does Netflix get with Warner Bros?
The Warner Bros. acquisition includes NetherRealm Studios (Mortal Kombat, Injustice), Rocksteady Studios (Batman Arkham series), Avalanche Software (Hogwarts Legacy), TT Games (LEGO games), and WB Games Montreal (Gotham Knights). These studios develop games based on DC Comics, Harry Potter, Lord of the Rings, and other major Warner Bros. intellectual properties.
Is the Netflix Warner Bros deal finalized?
No, the deal faces two major obstacles. First, Paramount launched a competing $108.4 billion hostile bid on December 8, 2025 that Warner Bros. shareholders must consider. Second, even if Netflix’s offer prevails, regulatory approval will take an estimated 12 to 18 months with no guarantee of success.
How much is Netflix paying for Warner Bros?
Netflix’s offer values Warner Bros. Discovery at $82.7 billion including debt, or $27.75 per share. The payment structure combines $23.25 in cash with $4.50 in Netflix stock. Paramount’s competing offer is $30 per share in all-cash, totaling $108.4 billion for the entire company.
When did Netflix start offering games?
Netflix began offering mobile games to subscribers in 2021 as part of its effort to diversify beyond streaming video. However, the initiative has struggled to gain traction with most subscribers unaware games are even available. In July 2025, Netflix announced a refocused four-pillar gaming strategy emphasizing narrative games, party games, kids titles, and mainstream licensed properties.
What happened to Fox that Netflix wanted to buy?
Disney acquired 21st Century Fox’s entertainment assets in 2019 for approximately $71 billion following an extended global regulatory approval process. Netflix apparently considered making its own bid for Fox before Disney’s acquisition closed, but executives couldn’t agree on pursuing the deal.
Why does Netflix want gaming companies?
Netflix views gaming as a way to increase subscriber engagement, reduce churn, and justify subscription price increases by offering more value. The company also sees gaming as the future of entertainment consumption, particularly as younger audiences spend more time gaming than watching traditional video content. However, execution has proven extremely difficult with multiple studio closures and strategic pivots since entering the gaming market.
Conclusion
Bloomberg’s revelation that Netflix seriously considered acquiring EA, Fox, and Disney before choosing Warner Bros. Discovery shows just how aggressive the streaming giant’s expansion ambitions have become. The fact that these deals never materialized highlights the difficult balance Netflix must strike between growth, valuation discipline, and investor expectations. Warner Bros. emerged as the Goldilocks option, big enough to be transformative with iconic franchises spanning film, television and gaming, but not so expensive or complex that it would tank Netflix’s stock price or require operational capabilities the company doesn’t possess. Whether the $82.7 billion bet pays off depends first on surviving Paramount’s hostile counter-bid and then navigating a lengthy regulatory approval process. For gaming specifically, Warner Bros. provides Netflix with established studios and mainstream franchises that align with their refocused strategy far better than EA’s hardcore sports and shooter properties ever could. The next few months will determine if Netflix leadership made the right call walking away from those bigger fish to land Warner Bros. instead.