According to earlier reports, Warner Bros. Interactive Entertainment was on the market as parent company AT&T looked to sell off some of its assets. But a new report claims that the telecommunications company may have reconsidered the decision to sell its valuable WB Games division.
Warner Bros. Games incorporates a number of big-name game developers including Rocksteady, NetherRealm and Warner Bros. Montreal, which would all be included in the sale of the WB games branch. The sale was said to be worth up to $4 billion that would help to stem the massive debt that AT&T is currently facing. Big players such as Microsoft and EA were said to be circling the deal, but the sale may be off the table according to new sources.
A report from Bloomberg reveals that AT&T has removed Warner Bros. Interactive Entertainment from its list of non-core assets available for sale. There are a number of possible influencing factors but the site states that insiders believe the games division was too valuable for sale and that its potential for growth is too high. Another contributing factor is the leadership turnover within AT&T that saw John Stankey taking over the CEO role from Randall Stephenson in July. It is also worth noting that the sale decision is still subject to change.
WB Games recently made a big splash at DC FanDome, unveiling two highly anticipated games in Gotham Knights and Suicide Squad: Kill the Justice League. Positive reactions from audiences for these games as well as excitement for other upcoming projects from the studios, such as the rumored Harry Potter RPG, shows huge potential for profit as the future titles look set to be best-sellers on release. This could add to the reasons why AT&T has decided to keep its games subsidiary.
Another factor that could influence the decision to keep Warner Bros. Games is the boom in popularity for the gaming industry due to Covid-19. Recent earning reports have proven that the video games industry has been in demand since in-person entertainment outlets such as cinemas and live events were canceled and people turned to home entertainment outlets such as video games instead. It's even estimated now that 75% of U.S. households have at least one gamer, which is an incredible statistic.
The gaming industry looks set to maintain its success with the release of next-gen consoles such as the PlayStation 5 and Xbox Series X releasing in Holiday 2020. With Gotham Knights and Suicide Squad: Kill the Justice League set to have next-gen console releases, it makes sense that AT&T would want to hold onto WB Games as video games continue to profit.
Source: Bloomberg