Summary
Recent rumors have implied thatWarner Bros.may be looking into selling a large stake in its video game business as part of a company-wide division of financial debts and an attempt to increase its share price. While nothing is confirmed as yet,Warner Bros. has faced significant turmoil in recent years as a result of various financial shortcomings on both the film and video game fronts.
Warner Bros. has been a major player in the gaming industry for a long time, having acquired TT Games, the developer behind the popular LEGO video games, in 2007, as well asBatman: Arkhamstudio Rocksteady. It is also the owner of NetherRealm Studios, ofMortal KombatandInjusticefame, and Portkey Games, the relatively new studio behindthe hugely successfulHarry PotterspinoffHogwarts Legacy.
Despite the success of games likeHogwarts LegacyandLEGO Star Wars: the Skywalker Saga,Warner Bros. is reportedly considering a massive sale of a large portion of their gaming division,according to the Financial Times. Reportedly, Warner Bros. CEO David Zaslav is looking into selling some of the company’s less profitable assets, which seemingly includes a major part of its gaming stake.
Warner Bros. Looks at Selling its Gaming Stakes to Recoup Financial Debt
The company faced a massive loss of an estimated $200 million after Rocksteady’sSuicide Squad: Kill the Justice Leaguefailed to impress consumersand has yet to recoup that loss with any of its other releases. It is unclear which studios would be affected should Warner Bros. go through with the sale, however, as the company has quite a few developers under its belt.
Just weeks before rumors that it would be selling off a good chunk of its gaming stakes,Warner Bros. purchasedMultiVersusdeveloper Player First Games, which already enjoyed a close partnership with the company beforehand. AnotherHarry Potterspinoff calledQuidditch Championsis also currently set for release later this year, leaving some room for speculation as to the game’s ultimate fate.
The rumored decision to sell off its gaming stakes is just one of many proposed plans from Warner Bros. in recent years to rack up its stock prices for investors following its 2022 merger with Discovery, which spawned from an effort to compete with the likes of Disney and Netflix. It has seemingly been an uphill battle ever since for the company, and it remains to be seen what may happen to many of its previously announced projects, such asthe mysteriousWonder Womanvideo game.
