AT&T refused to sell Warner Bros. gaming division amid multibillion-dollar debts
Warner Bros. Gaming Division It will remain in the AT&T structure. The company is not going to be sold for several reasons, including the potential success of future game releases and plans to repay the huge debt of the media conglomerate.According to Bloomberg sources familiar with the situation, AT&T considered Warner Bros.
Interactive Entertainment is too valuable an asset. Right now, the company is trying to pay off a huge debt (by the end of 2019, it amounted to $ 150 billion), and the gaming division can help with this.
According to the publication, several factors could have influenced AT&T’s decision at once:- a potentially successful, but still not officially presented game based on the Harry Potter universe;the impact of the COVID-19 pandemic on the entertainment industry.
- The closure of cinemas, in fact, turned the games into new blockbusters for a while;analysts note that the sale of the gaming division for AT&T has probably become too complicated a process.
- A potential buyer could be scared off by a large number of projects under licenses and long-term obligations associated with them;The decision not to sell WBIE was made against the background of a reshuffle in the board.
- In July, John Stankey, who previously worked as the operating director of the media conglomerate, took the position of CEO of AT&T.Rumors that AT&T is interested in selling WBIE appeared a few months ago.
It was assumed that the transaction amount could reach $4 billion. However, in August, the CEO of WarnerMedia also denied this information.
Now the gaming division of the company is working on several major projects. Last month, Rocksteady officially announced the Suicide Squad game in the Arkham universe, and WB Montreal presented Gotham Knights about the confrontation between the Bat family and the Court of Owls organization.
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- The game publishing division of Warner Brothers will have a new headTencent May Buy Warframe Owners for $1.49 billion
- Swedish holding Embracer Group acquired eight companies at once
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