AT&T Plans To Keep WB Games, Apparently Refusing To Sell The Gaming Unit

Despite the massive interest in WB Games, AT&T seems to be keeping the gaming unit to itself.

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AT&T, Warner Bros. Interactive Entertainment's (WB Games) parent company, has changed its mind. Instead of selling its high-valued gaming unit, AT&T plans to hold onto WB Games for the foreseeable future.

According to sources who spoke to Bloomberg on the condition of anonymity because the information is still private, AT&T has removed WB Games from its list of non-core assets to sell off. The sale was initially sparked by AT&T looking to streamline its subsidiaries and pay off mounting debt, but the company has since realized WB Games' potential, shrugging off the prices the division was attracting.

WB Games consist of studios like Avalanche Software (Cars 3: Driven to Win), NetherRealm Studios (Mortal Kombat 11), Rocksteady Studios (Batman: Arkham Knight), WB Games San Francisco (Harry Potter: Wizards Unite), and a few others. The newest titles attached to WB Games are Gotham Knights and Suicide Squad: Kill The Justice League, which are launching in 2021 and 2022, respectively.

Since the announcement that AT&T was looking to sell WB Games in June 2020, a bevy of companies has expressed interest in the prolific gaming division. This includes Activision, Electronic Arts, Microsoft, and Take-Two Interactive, among others. The sale could have fetched a $4 billion price tag.

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Fud_Sang

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Edited By Fud_Sang

They have the tools to be a powerhouse. They don't need to be bought out especially by the big tyrant publishers like take two, EA, and Activision. They've done well enough without. They need some help but they can get better by hiring out rather than selling off. Once again I will restate they DO NOT need to be bought out by any of those companies. They should not want that either. Every dev that has gone over to those companies has regretted it regardless of the price tag.

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BDRTFM

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Edited By BDRTFM

@fud_sang: AT&T is not a developer nor are they a game publisher. This is something totally foreign to their business model. They will literally have to hire people just to handle the people who handle the assets as nobody currently working at AT&T has a clue about being a video game publisher. They are in debt and are trying to offload some of that debt. In order for them to keep this new division of their company viable, they will have to pour cash into it that they are sorely lacking. Sure they can do it but it won't be a piece of cake or a walk in the park.

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BDRTFM

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I guess we'll have to wait and see how a company like AT&T handles the game publishing business. The fact that they were thinking about offloading the business doesn't exactly inspire confidence.

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ZmanBarzel

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I'm happy for the employees at the various WBIE properties who won't have this uncertainty hanging over their heads heading into the holidays.

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lionheartssj1

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Aren't they the publisher for Witcher 3 and, presumably, Cyberpunk 2077? Surely they're set to get some money from that, right?

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ZmanBarzel

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Edited By ZmanBarzel

@lionheartssj1: "Witcher 3" and "Cyberpunk 2077" are self-published by CD Projekt. Warner Bros. Interactive merely handled distribution for W3 in North America, a duty it's going to repeat for C2077. (Bandai Namco distributed W3 in Europe, but I'm not sure if it will do the same for C2077.)

WBIE will get...something...for its efforts -- otherwise, why bother doing it? -- but it won't be to the level of what a publisher would.

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lionheartssj1

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@zmanbarzel: Ah, thank you. I couldn't remember the specifics of how that arrangement was set up.

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ZmanBarzel

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@lionheartssj1: No problem! It's an easily confusable situation. Despite the air of knowledge in my reply, I actually had to do some research to make sure.

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santinegrete

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Oh man these guys own FEAR, I wish that game made a comeback. Just don't sell to Activision or EA mkay?

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Cikatriz_ESP

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Dang, I would’ve bought it, too.

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Just1MoHr

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Seller's remorse!

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johnny0779

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Edited By johnny0779

They won't sell it now, but once they find themselves in need of their "golden parachutes" that's when potential buyers will try to give them under valued propositions for everything.

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Viper13579

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Once they saw the prices and the eagerness, they changed their minds quickly

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mcnichoj

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@Viper13579: One of the higher ups at AT&T: "Hmm, why are these companies so willing to pay these high amounts of money for video game studios..."

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Viper13579

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@mcnichoj: AT&T doesn’t need the money but you can tell they didn’t do their homework on the video game department

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FanboyMan

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@Viper13579: AT&T does need the money! They’re willing to hold WB Interactive because, their confusing IP licensing probably lowered the valuation below what they wanted.

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