Did Netflix want to buy EA before its $82bn Warner Bros deal?

Netflix’s eighty-two-billion-dollar deal for Warner Bros. sent shock waves to the entertainment world, yet new reports reveal the company had earlier, discreet acquisition talks with EA.

What made the move come to a halt were internal discussions, high costs, and investor worries, raising new questions about the scope of Netflix’s gaming ambitions.

The surprising rumor broke just as Netflix made its huge Warner Bros. bid, sparking speculation that the streaming giant was on the verge of a very different strategy.

The speculations gained momentum after a Bloomberg report revealed that Netflix top guns spent months weighing whether to buy EA (Electronic Arts).

The move was driven by a larger ambition to diversify beyond streaming by building a portfolio of major entertainment and gaming assets.

Netflix even considered Disney and Fox during these deliberations, showing how wide their search really was.

However, insiders say the company struggled to make a clear decision, their leadership fearing a rapid gaming push would startle investors still seeing Netflix as a pure streaming platform.

That hesitation ultimately made them walk away from the EA deal, despite its long-term potential.

Did Netflix back out of the EA deal?

Acquiring EA would have been a risky, multibillion-dollar gamble. With EA’s high valuation, any premium offer risked hurting Netflix’s stock. Analysts note that management feared overpaying for a company with a fundamentally different business model.

For context, Netflix has made multiple efforts over the years to step into gaming; it even acquired studios, launched mobile games, and pursued a major shooter, only to face setbacks.

Last year, it scrapped a big-budget multiplayer project and closed the Squid Game Unleashed studio, Boss Fight.

These setbacks spotlight the high cost and risk of building games in-house.

An EA purchase would have provided immediate, proven franchises, but the financial and strategic risks were ultimately deemed too risky for Netflix.