Paramount makes no reference to game studios in first WB call to investors

Paramount held its first call with investors after acquiring Warner Bros, but did not mention either firm’s gaming divisions.

Paramount executives mainly discussed consolidating parts of both companies, such as merging HBO Max and Paramount+, and the acquisition’s impact on the entertainment industry.

There was much discussion about IP, which overlaps with Warner Bros Games’ refocus on its core franchises. However, the games business does not appear to be a current priority.

“By uniting our iconic studios, complementary streaming platforms with a global footprint, our cable and linear networks and our world-class IP, we have the opportunity to help shape the future and build a next-generation media and entertainment company,” said Paramount CEO David Ellison.

“Ultimately, this combination will enable us to better compete in today’s rapidly evolving entertainment marketplace where storytelling, combined with world-class technological expertise is essential in driving value creation for consumers, creatives and shareholders.”

In November 2024, Warner Bros Games announced it would focus on four core franchises – Hogwarts Legacy, Mortal Kombat, Game of Thrones, and DC. This followed comments from Warner Bros CEO David Zaslav, who said its games division “was substantially underperforming its potential.”

Last June, it promoted three studio heads to cement this strategy, including Montréal studio head Yves Lachance, who was appointed SVP of development for Harry Potter and Game of Thrones-related games, and Shaun Himmerick, studio head of Mortal Kombat developer NetherRealm, who was appointed SVP of development for DC.

Warner Bros Games New York studio chief Steven Flenory was appointed SVP of central tech & services, focusing on game and publishing technology, QA, user research and customer service.

In its latest financial results, Warner Bros said it was “rebuilding [its] video game pipeline.” Its full Studios segment – which includes gaming – saw revenue drop 14% year-on-year to $3.18 billion.

The fight between Paramount and Netflix over Warner Bros has continued since last December, when Netflix announced it would acquire the company for an estimated $82.7 billion at $27.75 per share.

Last week, Netflix backed out of the deal after declining to match Paramount’s raised $31 per share offer.

In a recent interview, Netflix CEO Ted Sarandon said there will “be cuts in excess of $16 billion” as a result of the new deal between Warner Bros and Paramount.

You can read our full timeline of the Warner Bros acquisition process here.