Forums - Gaming Discussion - Warner Bros Interactive no longer for sale

https://www.eurogamer.net/articles/2020-08-09-at-and-t-looks-to-have-changed-its-mind-about-selling-its-gaming-studios#:~:text=Create%20an%20account-,AT%26T%20looks%20to%20have%20changed%20its%20mind%20about%20selling%20its,the%20Studios%20and%20Networks%20group.%22&text=Warner%20Bros.%20Interactive%20Entertainment%2C%20owner,no%20longer%20up%20for%20sale.

AT&T looks to have changed its mind about selling its gaming studios

"Warner Bros. Interactive remains part of the Studios and Networks group."

Warner Bros. Interactive Entertainment, owner of studios such as Rocksteady, NetherRealm, and TT Games, is seemingly no longer up for sale.

Reports came in last month that parent company AT&T - which acquired Warner Bros. in 2018 - was looking to offload its gaming division for "about $4 billion" (£3.1 billion) in a deal that may include a "commercial licensing agreement where AT&T can continue to get revenue from its IP" such as LEGO and Harry Potter. Take-Two, Electronic Arts, and Activision Blizzard all initially expressed interest, but no deal followed, and then reports came in that Microsoft had also expressed an interest in acquiring the outfit.

Now, however, it seems AT&T has reconsidered the sale and instead of selling off its gaming concern to help mitigate its debts, instead it is restructuring the organisation. In an email to staff, CEO Jason Kilar told staff Warner Bros. Interactive "remains part of the Studios and Networks groups".

"The Warner Bros. Motion Pictures Group continues to be led by Chairman Toby Emmerich," a statement from the company reads (thanks, TheSixthAxis). "Warner Bros. Television Studios group continues to be led by Chairman Peter Roth. Warner Bros. Interactive remains part of the Studios and Networks group, along with our Global Brands and Franchises team including DC led by Pam Lifford, and our Kids, Young Adults and Classics business led by Tom Ascheim, all focused on engaging fans with our brands and franchises through games and other interactive experiences."

The email didn't shed light on the change, nor what might next be in store for WB's gaming division, but Kilar did acknowledge to all staff that the changes elsewhere in the organisation were "a lot to take in" and that "however challenging the [...] changes may be, we will also successfully navigate them as well".

The news comes just a short time after Rocksteady has confirmed an earlier Eurogamer report it is working on a Suicide Squad game. In a tweet showing an image of a decrepit-looking Superman with a target on his head, the Batman Arkham developer revealed the Suicide Squad game will be announced on 22nd August, during the DC Fandome event.

Interesting turn of events, looks like WB Bros will remain as is. Thoughts?



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Personally I think these sites are reading too much into it, it's not like they're going to just cease WBIE operations cause they're trying to sell, things will continue as normal until someone actually acquires them.

"Remains part of" is just a statement of fact right now until it is no longer a fact (like someone actually acquiring them), deal of this size would likely take 4-6 months at the very minimum.

Buuut it is possible AT&T were simply asking for too much, if negotiations are still happening I'd still be betting on EA getting them.

Last edited by Ryuu96 - on 09 August 2020

"Now, however, it seems AT&T has reconsidered the sale and instead of selling off its gaming concern to help mitigate its debts, instead it is restructuring the organisation"

If I were to make a wild guess I would say no one was willing to buy all the studios in one single purchase and now they're looking to just sell some of them separately. 

I still think the best option for Warner Bros would be to just license their IPs. They would be earning money without having to spend a dime. 



I bid $12. I would be a good owner.



http://www.youtube.com/watch?v=F1gWECYYOSo

Please Watch/Share this video so it gets shown in Hollywood.

Probably for the best. More publishers is a good thing



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And hopefully it stays that way.

Wouldn't be so bad if a non-gaming related company were to buy them to get into gaming. But none of the existing gaming companies that could actually afford to buy them would be good.



Bet Shiken that COD would outsell Battlefield in 2018. http://gamrconnect.vgchartz.com/post.php?id=8749702

I didn't really want someone like Microsoft, Stadia, or Activision buying them but I wonder how that would effect ATT's debt levels Love me some ATT stock with their 7% dividend yield!



Great!



Bite my shiny metal cockpit!

I find it funny to see so many people saying, "Oh, this is great!" without considering two things:

1) If AT&T is in so much debt then they might not have the financial disposition to invest in many games.

2) They might end up just licensing the IPs anyways, so I wouldn't surprised if either MS or Sony (or both) ended up snatching some of those IPs to make exclusive games.



I'm still confused about the sale, I was under the impression that WB Interactive was profitable. Does WB need liquidity that badly?



You know it deserves the GOTY.

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