AT&T is offering Warner Bros. game division for sale

AT&T is offering Warner Bros. game division for sale

AT&T offers its Warner Bros. interactive entertainment (WBIE) put up for sale, according to a CNBC report as well as our own reports.

Citing anonymous sources, CNBC said Friday that the potential bidders were Take-Two Interactive, Electronic Arts and Activision Blizzard. If the sale occurs, it would be a major change for Hollywood and its industry relations, as most of the major studios choose to withdraw from the game industry, reversing a trend from previous decades where they took charge of development studios.

Two sources confirmed to GamesBeat that the report is correct in terms of sales division. WBIE did not comment on this. EA and Take-Two declined to comment. Activision Blizzard did not respond to the request for comment.

CNBC said the price could be around $ 4 billion. But one of my sources said that the proposed price was $ 2 billion. A large gaming company has said it is not interested in buying because WBIE only makes money intermittently and does not own some of the major franchises that are at the heart of its main games. He does not, for example, have the Harry Potter license, as it is unclear whether author J.K. Rowling would approve the transfer of the Warner Bros. license. to another gaming company. Nor does it own the property of DC Comics, which the Batman Arkham and Injustice franchises use.

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No deal is assured or imminent, said CNBC. WBIE has 10 game studios, led by David Haddad. The company offers a wide range of games such as Harry Potter, Lego, Mortal Kombat, Batman Arkham and Game of Thrones. He also has original mobile titles like Golf Clash, and this year he’s launching Lego Star Wars: The Skywalker Saga.

WBIE studios include TT Games, Rocksteady Studios, NetherRealm Studios, Monolith Productions, WB Games Boston, Avalanche Software, Playdemic, WB Games Montreal, WB Games San Francisco and WB Games San Diego. WBIE stands out as one of the few success stories in Hollywood and gaming, and it is a kind of crown jewel in the gaming industry.

David Haddad is

Above: David Haddad is President of Warner Bros. Interactive Entertainment.

Image credit: Dean Takahashi

Last year, rumors also emerged that AT&T, which acquired WBIE Time Warner’s $ 109 billion acquisition, planned to sell WBIE to reduce its debt by $ 200 billion. He abandoned this plan, considering WBIE an asset. But during the current recession, exacerbated by the coronavirus and recent unrest, AT&T is under more financial pressure from shareholders to sell assets.

In addition to this, former Warner Media CEO John Stankey replaces Randall Stephenson as CEO of AT&T on July 1.

When it comes to Hollywood and gaming, a number of movie studios are doubling over on the streaming wars as they try to cope with the foreclosure of movie theaters. Games, of course, would be a great way for entertainment companies to go digital. But heavy investments in the broadcasting of films and television programs tax Hollywood companies. Disney + has managed to attract many users, prompting other studios to follow suit, said an observer who asked not to be identified.

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