Highlights
- Warner Bros. may sell off part of its gaming division to address financial debts and boost share prices.
- Despite owning popular studios like Rocksteady and NetherRealm, Warner Bros. faces financial struggles.
- Recent acquisition of Player First Games raises questions about the fate of upcoming releases under Warner Bros.
Recent rumors have implied that Warner 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 as Batman: Arkham studio Rocksteady. It is also the owner of NetherRealm Studios, of Mortal Kombat and Injustice fame, and Portkey Games, the relatively new studio behind the hugely successful Harry Potter spinoff Hogwarts Legacy.
Despite the success of games like Hogwarts Legacy and LEGO 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's Suicide Squad: Kill the Justice League failed to impress consumers and 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. purchased MultiVersus developer Player First Games, which already enjoyed a partnership with the company beforehand. Another Harry Potter spinoff called Quidditch Champions is 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 as the mysterious Wonder Woman video game set to release next year.
Date Founded January 14, 2004 Headquarters Burbank, California, United States Parent Company Warner Bros. Interactive Entertainment , Warner Bros. Games Subsidiaries TT Games , Rocksteady Studios , NetherRealm Studios , Monolith Productions , WB Games Montreal , WB Games Known For Mortal Kombat , Batman , Injustice
