A report from CNBC suggests AT&T is eager to sell its video game division Warner Bros. Interactive Entertainment for around $4 billion to help pay off some of its debt, valued at almost $200 billion.
Parties that are believed to have shown interest so far include Take-Two, Electronic Arts, and Activision Blizzard.
If a deal was to go ahead, the sale would include studios like NetherRealm (Mortal Kombat), Avalanche (Just Cause), 5th Cell (Scribblenauts), and Rocksteady (best-known for the Batman Arkham series).
It's worth pointing out this would not include ownership of IP like Batman or Harry Potter. Instead, AT&T is likely to arrange a "commercial licensing agreement" - allowing it to continue to earn revenue from its IP.
According to sources, no deal is assured or imminent. If we hear anything else - we'll let you know. What company would you like to see to acquire the WB gaming division? Leave a comment below.
[source ign.com]
Comments 15
4 billion?!! Wow. Yea Microsoft probably COULD do it, but should they?
And Is Sony even worth for 4 billion? 😂
This would be massive for Xbox. Rocksteady especially would be huge
That’s such a huge amount of money to spend when you consider that most of the IP they own aren’t really relevant today, with the exception of the listed above and even then a lot of the games, such as that by Rocksteady and TT Games, are licensed.
Unfortunately I see Rocksteady becoming a shell of its former self no matter if EA, Activision or Take Two buy it. Fully expect a lot to leave and hopefully form a new studio on their own.
If EA buys them then you pay microtransactions for moves in mortal, including basic moves like jump, move left, move right (sold separately to move left) and so on. So until you buy moves you're a mute punching bag. Oh yeah, you pay for each sound effect for each character and stage music, and ambient sound effects too😀🍪🍼💵💴💶💷💸💱
@KelticDevil “ but should they?”
Well, we talking about Mortal Kombat, every DC license (on royalty basis), Shadow of Moldor games, Harry Potter (any WB movie license really) LEGO games. And a ton of very capable studios with proven track records at delivering solid games.
Need I say, of course: Batman.
Right now, Microsoft REALLY could use Mortal Kombat and Batman to fend off Sonys exclusivity on Street Fighter and Spider Man.
For us, gamers, it would be horrible if this ends in the hands of EA, Take Two is Activision (sorted in worst to least worst.) EA would honestly ruin every single one of those studios and close it all down eventually.
This would be an amazing acquisition for MS but I do think $4 billion is a big ask, especially when the new owner would still have to pay WB licensing fees for certain IPs. MS can more than afford it as it is worth more than a trillion dollars but only they know if it’s worth it.
If Microsoft picked up the new Batman and made it an Xbox exclusive to counter-program against Spider-man, that would be AMAZING.
A lot of people keep mentioning MS buying them, but I'm not in agreement at all. MS is still going strong, but the pandemic affected everyone, so I'm sure MS is trying to figure out where they can cut losses. Not to mention that the U.S. isn't in the best of relations with China, where most of their manufacturing comes from. And one of the reasons why AT&T is in the financial problems they are is because of their spending habits trying to buy as much content as they could. So considering they've already bought a ton of studios, the last thing I would want to see is MS following in AT&T's footsteps and ending up with a console generation where the Xbox isn't financially profitable because they bought one studio or one IP more than they should have.
Tbh, I think Xbox will be better positioned to compete with Sony if they make all new IP and take advantage of the original content they already have. They already own several video game content that can stand next to some of the best that Sony and Nintendo own if they only gave them to good developers to make new games out of.
@Tharsman Batman isn't part of the deal. So they'd only get the studio, and not the IP.
@Octane they don’t get Batman ownership, but they still get the license to make Batman games. Sony does not own Spideeman either, well... they do own the license to make movies in perpetuity... or until they spend 3 or 7 years without making one.... but in video games it’s not a permanent license.
@Tharsman Is that a given as well? They could license the IP to another publisher, right?
@Octane a lot of the studio would lose most of its value if they could not continue making the series of game they been selling (Harry Potter is in the works, Batman series, Injustice, Shadow is Moldor series.)
The article assumes the same:
“ Instead, AT&T is likely to arrange a “commercial licensing agreement” - allowing it to continue to earn revenue from its IP
@Tharsman Of course, but there's no say this is forever, or just to cover the games they are currently working on.
@Tharsman “ Right now, Microsoft REALLY could use Mortal Kombat and Batman to fend off Sonys exclusivity on Street Fighter and Spider Man.”
I’d never thought of it in those terms, but that would be a massive coup for Microsoft.
I really really hope EA does not get its hands on MK. Just no. That’s a level of pain that would make me cry.
As much as I think MS would do well with MK, I also look at KI as an Xbox exclusive and wonder if it’s really a good thing. I mean I guess people would purchase and Xbox for MK. I thought that Boon did have a better working relationship with the MS side. I think I remember him being the one to defend the dev kits back when the rumor was the Xbox was the weaker one. Am I imagining that?
And poor Avalanche first Disney and now AT&T. They can’t really catch a break can they.
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