Certain sectors in the entertainment industry saw minimal losses from the COVID-19 pandemic, with others facing drastic profit margin failures. This extended towards Warner Brothers Interactive Entertainment, with their film studio suffering significant losses since March 2020. When looking towards the gaming division of Warner Brothers, profits didn’t drop believe a 2.3 percentage. The Warner Brothers Gaming Division is now being used to offset the losses associated to WB Productions. It should be mentioned that Warner Brothers Interactive Entertainment is owned by the AT&T Company.
Reports indicate that AT&T is selling the gaming division of Warner Brothers, with the associated price tag for this acquisition being $4 Billion. It’d be the most significant payout ever seen in gaming history, with analysts claiming their selling price is reasonable. Most forget that Warner Brothers Gaming Division maintains several studios, which create video games for notable franchises. That included Batman, Mortal Kombat, Lord of the Rings, Cards, Game of Thrones, Harry Potter, and the LEGO Series. Whoever purchased WBs Gaming Division would obtain access to these properties. It’d also mean that NetherRealm Studios, Rocksteady Studios, Monolith Productions, WB Games Montreal, Avalanche Software, WB Games San Francisco, and TT Games would become properties that the acquisition holder.
Inside sources close to negotiations with AT&T mentioned that this sale won’t follow unless the acquisition holder agrees to provide revenue to Warner Brothers under all their franchises. This means it’d cost $4 billion to acquire their Gaming Division, while still paying them monthly percentages on profits earned from developed games. Under these conditions it’s expected that interested parties will inevitably back down from an agreement. Warner Brothers needs to become negotiable to make their goals of selling sustainable.
Three corporations in the gaming industry have expressed public interest in acquiring Warner Brothers Gaming Division. They include Activision, Electronic Arts, and Take Two Interactive. WB Executives are holding primary negotiations with Activision for this acquisition, which would make sense with the recent growth this publisher has shown sine 2015.
Better Mobile Games Will Come
One benefit awarded to consumers from this acquisition is that mobile entries into these franchises will excel tenfold over the next five years. Consumers can anticipate new entries into the LEGO, Harry Potter, and Lord of the Rings mobile franchises.