AT&T, the parent company to Warner Bros., is seeking companies to purchase their gaming division - which hosts a smattering of big developers and gaming franchises that have been going for decades.
In an article posted yesterday on CNBC, their sources reported that Take-Two Interactive (BioShock, Grand Theft Auto), Electronic Arts (Battlefront, FIFA) and Activision Blizzard (Warcraft, Call of Duty) are interested in purchasing their interactive division, including all of its IP, which could fetch up to an astonishing $4 billion. When it comes to gaming companies, EA, Activision Blizzard and Take-Two Interactive are probably the only publishers able to afford the purchase
Some big gaming franchises have come out of Warner Brothers, including Harry Potter, Game of Thrones, The LEGO games, Mortal Komat and last, but not least, the Batman franchise.
Some of the more notable studios that are currently owned by Warner Brothers are:
- Avalanche Software (Disney games)
- Monolith Productions (F.E.A.R., Middle-Earth)
- NetherRealm Studios (Mortal Kombat)
- Portkey Games (Harry Potter)
- Rocksteady (Batman)
- TT Games (Lego)
With a financial debt of at least $200 billion, selling off Warner Bros Interactive will only amount to 2% of their current debt, which means that AT&T will have to dip into their other divisions to reel back some debt. Their non-core assets that are also potentially on sale includes their streaming service DirectTV.
AT&T purchased Time Warner (which included Warner Bros.) in 2018 for $109 billion, the subsidiary is now operating at $165 billion in debt, this is very bad news that is going to send ripples throughout the media industry both in gaming and TV/Movies. Not only this but they're also a telecommunications giant.
AT&T purchased Time Warner (which included Warner Bros.) in 2018 for $109 billion. The subsidiary is now operating at $165 billion in debt, which will not only send ripples throughout the media industry both in gaming and TV/movies, but also their telecommunication divisions will suffer. Former WarnerMedia CEO John Stankey previously said that AT&T is focusing on “a lot of work around portfolio rationalization” at the Media & Telecom Conference.
The current state of the global economy is hitting all companies, both small or conglomerates. What will happen with Warner Brothers is remains to be seen, but what does seem clear is that their gaming divisions are most certainly heading elsewhere.