Netflix co-CEO Greg Peters confirmed the company attributed no value to Warner Bros. Discovery's video game arm when structuring its $82.7 billion acquisition deal, calling the segment "relatively minor compared to the grand scheme of things."

Speaking at a conference presentation reported by Pocket Gamer, Peters responded to a question about whether buying Warner Bros. would accelerate Netflix's gaming roadmap. His remarks leave the future of Rocksteady, Avalanche Software, Traveller's Tales and NetherRealm Studios explicitly unaccounted for in the deal model.

"While Warner Bros. had done 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," Peters said.

"Now we are super excited because some of those properties that they've built, Hogwarts is a great example of that, have been 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."

What's actually inside the Warner Bros. Games portfolio?

• Rocksteady Studios — Batman: Arkham series
• Avalanche Software — Hogwarts Legacy
• Traveller's Tales — LEGO games
• NetherRealm Studios — Mortal Kombat, Injustice
• WB Games Montreal — Gotham Knights

Hogwarts Legacy has sold tens of millions of copies and generated billions in dollars of revenue since its 2023 launch, making the zero valuation harder to square with the IP's commercial track record.

Why did Warner Bros. Games fall out of the deal math?

The valuation gap mirrors a punishing 2024. Rocksteady's Suicide Squad: Kill the Justice League triggered around $200 million in write-downs, while live-service brawler MultiVersus added a further $100 million hit. Harry Potter: Quidditch Champions failed to register commercially, and games group boss David Haddad exited the company in January.

By June, Warner Bros. Games had restructured around four pillars: Mortal Kombat, Harry Potter, DC and Game of Thrones. Monolith Productions, Player First Games and Warner Bros. San Diego were shuttered, and the Wonder Woman game was cancelled.

Warner Bros. Discovery President and CEO David Zaslav acknowledged in a subsequent financial call: "We recognise [the games business] is substantially underperforming its potential right now."

What does Netflix actually want with these studios?

Netflix has cycled through high-profile gaming hires and subsequent studio closures since 2021. Its current pipeline narrows to four lanes: narrative games tied to Netflix shows, children's titles, social party games and Grand Theft Auto ports.

Peters' framing of Hogwarts-style IP as something Netflix could "incorporate" points toward a narrative-game application of Warner Bros. properties, rather than large-scale live-service development.

What's still on the Warner Bros. Games slate?

• Lego Batman: Legacy of the Dark Knight — launching in 2026
• Hogwarts Legacy sequel — in development, unannounced
• Rocksteady single-player Batman title — reported, unannounced
• NetherRealm's next project — undisclosed, with MK1 updates halted
• WB Games Montreal — reportedly pitching a new Game of Thrones game

Lego Batman: Legacy of the Dark Knight looks structurally safe regardless of deal timing. The acquisition is not expected to close before summer 2027, putting it beyond the project's launch window.

The open question for studios is whether a "zero-value" line item becomes a launchpad for in-house Netflix development, a divestiture target, or a holding pattern for unannounced projects the buyer never priced in.