Update: A representative for Warner Bros. provided a statement regarding the possibility of Warner Bros. Games selling any other studios, confirming that, "NetherRealm Studios and TT Games will continue to remain a part of Warner Bros. Games, and all are included in the Warner Media Discovery Merger."
Original Article: The ongoing, complicated split between AT&T and WarnerMedia has taken another twist. While the most recent official update from WarnerMedia is that virtually all of its gaming studios, including Rocksteady, NetherRealm, and TT Games, are going to be moving with it into its newly formed organization with Discovery, a new rumor indicates other plans. A new report claims that Warner Bros. Interactive is "interested" in selling both NetherRealm and TT Games, even citing verifying documentation.
The report comes from Windows Central's Jez Cordon speaking during a recent Xbox Two podcast. Cordon says that Warner Bros. Interactive described seeing both NetherRealm and TT Games as not being "in their scope," using WB's language. As such, at one point in time WarnerMedia was considering selling both studios, though Cordon couldn't say whether the possibility was recent or not. Cordon says the documents he has don't refer to any specific time frame, so they could be antiquated.
While the report that Warner Bros. Interactive was considering or is still considering selling NetherRealm and TT Games is unique, it's not the first time a studio sale from WB has gone around. Leading into E3 2021, there was a flurry of rumors about Microsoft potentially acquiring Rocksteady and NetherRealm for Xbox Game Studios. Those rumors obviously never came to fruition and haven't been mentioned since, but nevertheless add to the growing discourse surround potential Warner Bros. Interactive studio sales.
Cordon lightly speculates about the reasons why NetherRealm and TT Games might no longer be within the scope of WarnerMedia's efforts. He says that the recent Mortal Kombat film's performance may have disappointed, making the IP less attractive to the company. For TT Games, he mentions the likely pricey cost of licensing LEGO, as Traveller's Tales has only produced LEGO games for the past decade.
Obviously, the reasons behind WarnerMedia considering selling any of its studios are fairly unlikely to be revealed. If going by WarnerMedia's word, there's no reason to believe it's considering selling any studios. There's a substantial possibility that WarnerMedia will continue forward with the studios it has for the foreseeable future.
What complicates the issue is WarnerMedia's upcoming joining with Discovery to form Warner Bros. Discovery. The $43 billion merger, which decouples WarnerMedia from AT&T in the process, is loosely planned to close soon. But the priorities of WarnerMedia before the merger, which may or may not include selling certain studios, may be dramatically different from the priorities of the new Warner Bros. Discovery leadership. Suffice to say, these new NetherRealm and TT Games acquisition rumors only complicate the matter.