Highlights
- During the first investor call following Paramount’s agreement to acquire WBD, executives left Warner Bros. Games unaddressed.
- Warner Bros. Games manages high-value gaming IPs such as DC, Mortal Kombat, Wizarding World, and Game of Thrones.
- First briefing after the WBD merger focused on film, TV, and streaming.
Paramount Skydance and Warner Bros. Discovery, Inc. (WBD) executives did not discuss either company’s gaming operations during the first investor call following Paramount’s agreement to acquire WBD. The first M&A call on March 2, 2026, discussed media and streaming operations at length, raising questions about the future role of Warner Bros. Games within the combined entity.
The discussion focused heavily on film production, television networks, and other services, including the integration of Paramount+ with HBO Max into a single streaming service. “Ultimately, this combination will enable us to better compete in today's rapidly evolving entertainment marketplace,” noted Paramount CEO and Chairman David Ellison while emphasizing value creation, storytelling, and “technological expertise.”
Warner Bros. Discovery oversees one of the largest interactive entertainment portfolios among Hollywood studios. The division, Warner Bros. Games, publishes titles based on WBD’s major franchises, including Batman: Arkham, Mortal Kombat, DC Comics, and Wizarding World IPs.
Warner Bros. Games’ Strategic Role and Paramount’s Limited Gaming Footprint
Warner Bros. Games is one of the largest film and television IP-based video game publishers. It oversees multiple studios, including Rocksteady Studios, NetherRealm Studios, TT Games, Avalanche Software, and WB Games Montréal.
Warner Bros. Games' publishing library includes popular titles such as Justice League Heroes, The Lord of the Rings titles, Hogwarts Legacy, and Mortal Kombat titles. Its most successful recent title, Hogwarts Legacy (2023), became one of the best-selling games in the industry. The title surpassed 40M copies sold globally by December 2025, while generating more than $1 billion USD in revenue shortly after launch.
Despite that scale, Warner Bros. Games has faced volatility in recent years. In WBD’s latest financial results, WBD’s studio segment observed a 14% year-on-year decrease, prompting a restructuring of the gaming arm.
After several projects underperformed commercially, a renewed focus on four core franchises, DC, Mortal Kombat, Wizarding World, and Game of Thrones was announced in 2024. In June 2025, WBD made changes to the executives of NetherRealm, the New York studio, and the Montréal studio, for better management of its properties.
Warner Bros. Games’ gaming IPs will be transferred to Paramount after the deal closes. Paramount, by contrast, has maintained a relatively small presence in gaming. Its activities have largely centered on licensing IP through Paramount Game Studios, established in 2022.
Netflix Deal Previously Downplayed Warner Bros. Games Division
Paramount holding the first M&A call without mentioning the gaming division echoes Netflix’s approach. Netflix executives previously indicated that the gaming division did not play a major role in the deal’s valuation.
Netflix co-CEO Gregory Peters said during investor discussions that the company “didn’t attribute any value” to Warner Bros.’ game studios in its acquisition model. Netflix argued that the division was relatively minor compared to the scale of its film, television, and streaming assets.
In recent times, Warner Bros. Games has seen one-off successes like Hogwarts Legacy, instead of a continuous momentum. Netflix and Paramount’s approach towards the publisher and its properties might be a result of that.
However, during the investors' call, Peters mentioned that the company will analyze how they can incorporate Warner Bros’ gaming IPs into what Netflix would be offering. Paramount, on the other hand, is yet to talk about WBD’s gaming arm in their roughly $111B acquisition deal.
