Netflix came close to acquiring a major game studio before Warner Bros. secured its $82.7 billion merger agreement, Newsweek reports.

The near-miss reveals that Netflix weighed direct ownership of established development talent rather than continuing its strategy of acquiring smaller mobile-focused teams and building internal studios from scratch. Newsweek did not name the studio Netflix pursued or disclose the price under discussion.

The $82.7 billion Warner Bros. figure anchors the deal environment Netflix was operating in. Warner Bros. Discovery's games division — home to franchises including Mortal Kombat, Batman's Arkham series and Hogwarts Legacy developer Portkey Games — has been one of the most closely watched assets in media consolidation, and any Netflix bid for a comparable AAA operation would have marked a step change in how streaming platforms approach interactive content.

For studios and publishers, the report signals that Netflix remains an active buyer at the top end of the market, not just a licensor of game IP or an acquirer of boutique mobile teams. The company has spent the past several years building a games offering bundled with its subscription, adding titles to its catalog and recruiting developers — a strategy that has so far produced a large library but limited player engagement compared with dedicated gaming platforms.

A major studio acquisition would have given Netflix proven production pipelines, owned IP and a AAA-scale workforce in one transaction, accelerating a games push that organic hiring has struggled to match. The fact that talks progressed far enough to be described as a near-purchase suggests Netflix's leadership sees games as core to subscriber retention rather than an experimental side bet.

The broader context matters for competitive dynamics. If streamers begin competing for the same studio targets that traditional publishers and platform holders pursue, valuations for proven development houses could rise and the pool of independent AAA talent could shrink further.

The report leaves open whether Netflix will revive talks with the unnamed studio or pursue alternative targets now that the Warner Bros. deal has reshaped the market. Watch whether Netflix's next gaming move comes as an acquisition announcement or another expansion of its internal development footprint.