As 2025 comes to a close, the entertainment and gaming landscapes may be set for massive transformation. Two blockbuster deals are capturing headlines: Saudi Arabia’s Public Investment Fund leading a $55 billion acquisition of gaming giant EA and Netflix’s eye-popping $82 billion proposed purchase of Warner Bros. Studios. But here’s the kicker: it would appear Netflix had its sights set on EA long before the deal for Warner Bros. materialized.
Bloomberg recently reported that executives at Netflix spent extensive time weighing the pursuit of EA, as well as Fox and Disney, before ultimately landing on Warner Bros.
The leadership team couldn’t make up its mind on these earlier targets, and there were grave concerns about how such dramatic maneuvers might shake investors accustomed to Netflix’s core streaming model.
It is unclear, however, exactly when such discussions took place internally, but the mention of Disney as a potential target does raise some eyebrows. For the most part, Disney has historically been an acquirer rather than an acquiree, with successful acquisitions of Pixar, Marvel, and Lucasfilm over the years.
Gaming Ambition of Netflix and Foreign Influence Concerns Overshadow Major EA and Warner Bros
The entertainment behemoth completed its purchase of Fox’s entertainment assets back in 2019, following a complex web of regulatory approvals across multiple countries.
The future of both deals involving Warner Bros. and EA is far from certain. Regulatory approval is hardly a given, and already both transactions are under heavy scrutiny by government regulators and industry overseers alike.
The stakes are unusually high since the deals have the potential to reshape the power structure in the gaming industry.
The EA deal has set off alarm bells in Washington. Senators Richard Blumenthal and Elizabeth Warren have raised concerns about foreign influence over one of America’s most prominent gaming companies.
Under the deal, Saudi Arabia’s PIF would take majority control over EA. The company has sought to assuage those concerns, saying in a regulatory filing last month that it would retain creative control over its business despite the change in ownership.
Could a Warner Bros. Acquisition Solidify Netflix’s Gaming Strategy?
For Netflix, the Warner Bros. acquisition would mark a major move into gaming intellectual property. The deal would hand it control over popular franchises like Mortal Kombat, Batman, and Harry Potter games. This would be a big move into the gaming world, though one in which Netflix has had a spotty record so far.
The streamer showed considerable ambition in gaming throughout recent years; however, 2024 brought a reality check. Netflix shuttered development of a highly anticipated AAA multiplayer shooter that had attracted talent from legendary franchises such as Halo and Destiny, including industry veteran Joe Staten.
More recently, in October, Netflix closed Boss Fight, the studio responsible for Squid Game: Unleashed, a mobile game based on the streamer’s hit series.
These closures paint a complicated picture of Netflix’s gaming strategy. While the company quite obviously wants to be considered a player in the gaming world, it has struggled to find a direction that works for it. The Warner Bros. deal could provide an established foundation of proven franchises, as opposed to the riskier proposition of building games from scratch.
The broader implications for the games industry are huge. If both go through, they would account for more than $135 billion combined in transactions and would dramatically reshape the competitive landscape.
EA going under Saudi Arabian control would be one of the most significant examples of Middle Eastern investment in Western gaming to date. Meanwhile, Netflix with control of major gaming franchises would further blur the lines between streaming entertainment and interactive media.
Will Antitrust Fears Halt the Gaming Industry’s Consolidation Trend?
What remains to be seen is whether regulators will allow these massive consolidations to proceed. Antitrust concerns, foreign investment restrictions, and the potential for reduced competition could all factor into the final decisions.
For now, Netflix and the consortium bidding for EA alike will need to make the case that these deals serve the public interest while addressing legitimate concerns about market concentration and creative independence.
The gaming industry has already seen significant consolidation in recent years, and these potential deals would accelerate that trend dramatically. Whether ultimately successful or not, they signal that gaming has grown too valuable for major players to ignore.
