Netflix Didn't 'Attribute Any Value' To Warner Bros. Games As Part Of WB Takeover Bid

Last week, we heard how Netflix was attempting to purchase Warner Bros. in a stunning $82.7 billion deal, before Paramount ended up fighting back with a deal of their own — we'll see how this all unfolds in the coming months.

One of the big questions at the time of the Netflix announcement was whether Warner Bros. Games would be impacted by the takeover, which eventually ended up being confirmed, but no specifics were provided.

However, a follow-up conference call reveals some very interesting comments from Netflix co-CEO Gregory Peters, who advised that Warner Bros. Games wasn't attributed any value in the deal whatsoever.

Here's exactly what he had to say in his answer about this:

John Hodulik (UBS Investment Bank, Research Division): "And does the Warner Bros. assets enhance or accelerate the success in the gaming side?"

Gregory Peters (Co-CEO, President & Director): "Yes. And maybe worth going back again to sort of how we thought about the deal and building our valuation model. While they definitely have been doing some 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. Now we're super excited because some of those properties that they've built, Hogwarts is a great example of that, have 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."

As you can see, Peters is certainly interested in Warner Bros. Games and how popular IP such as Hogwarts Legacy can enhance "what we're offering" at Netflix, but it clearly wasn't considered very important in the takeover.

Is that bad news for the future of the division? Maybe, but it's way too early to say at this point. We'll have to wait and see how this all pans out first, and whether Paramount ends up stealing the acquisition away from Netflix instead.

What are your thoughts on these comments? Let us know down below.

[source seekingalpha.com, via kotaku.com]