Games studios among many assets to face cost scrutiny if acquisition is approved

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Netflix CEO Ted Sarandos has warned that Paramount's acquisition of Warner Bros will require cuts exceeding $16 billion within 18 months, based on financial disclosures Netflix reviewed during its own bid. Warner Bros' games division — home to Rocksteady, TT Games, and Avalanche Studios — faces cost scrutiny alongside film and TV assets. Netflix withdrew from the bidding after Paramount raised its offer to $31 per share in an all-cash deal, collecting a $2.8 billion breakup fee. The deal faces regulatory review in multiple jurisdictions including California and the EU, despite White House support. Warner Bros had already been restructuring its games division around four key IPs after a period of underperformance.

Netflix boss says Paramount acquisition of Warner Bros will result in "cuts in excess of $16 billion" within "18 months or so"