Imran Khan: Warner Bros interested in selling studios

[the-pi-guy]

Interested parties include EA, Take-Two, Microsoft, Sony, Tencent, Netease, and PUBG Corp. WBD wants to sell studios and license IP, supposedly.

— Imran Khan (@imranzomg) April 29, 2022

[Legend]

There's been smoke for this for years. Wonder if it's actually happening now.

Hopefully not Microsoft or Tencent. PUBG would be really interesting.

[the-pi-guy]

I wonder if it'd make sense to sell the studios individually in this case.

[kitler53]

which studios do they own!   in this case the listened IP seems like the more important part. 

[the-pi-guy]

which studios do they own!   in this case the listened IP seems like the more important part.

Rocksteady (Batman Arkham Series)
Avalanche (eh, but currently working on Hogwarts)
Monolith Productions (Middle Earth games)
NetherRealm (Mortal Kombat)
TT (Lego games)
WB Montreal (Arkham Origins/Gotham Knights)
WB Boston (online/mobile mostly)

[the-pi-guy]

There's been smoke for this for years. Wonder if it's actually happening now.

Hopefully not Microsoft or Tencent. PUBG would be really interesting.

WBD has a massive debt load, has promised a ton of cost cutting, and Zaslav is both very hands on and doesn't know about or care about games at all.

Everything has changed.

[kitler53]

Rocksteady (Batman Arkham Series)
Avalanche (eh, but currently working on Hogwarts)
Monolith Productions (Middle Earth games)
NetherRealm (Mortal Kombat)
TT (Lego games)
WB Montreal (Arkham Origins/Gotham Knights)
WB Boston (online/mobile mostly)

okay.  not a bad list.  not too their talent but all pretty good.  I'll bet Sony could coach any of them into excellence. 

[the-pi-guy]

Ok, I can address that.

We just need to look at what AT&T did. They just went through this exact same song and dance with WB Games, put the studios up for sale to they could focus on licensing for games, and no one was willing to buy for the price AT&T wanted (even MS walked). They then kept WB Games pretty much as is, because it's a good asset that is worth a lot and they didn't want to destroy that value with short-sighted actions.

Now I expect WBD to be willing to sell for less, but I think their business calculations will be roughly the same. It's a good business, it does well for us, let's sell it for what it's worth and if we can't, we don't.

Another interesting post.

[the-pi-guy]

So any predictions?  
Will they end up selling? And who would buy them?

It would be something if Sony acquired WBI and started making a Marvel Gaming Universe.

Not the outcome I want or expect, but it'd be something.

[the-pi-guy]

$300 million for Crystal Dynamics and Eidos *with* their IP should give insight into why WB has struggled to sell its studios *without* their IP. Spending the money to take on the cost of running a studio is barley worth it when you do get Tomb Raider. Now add Batman's licensing.

— Jeff Grubb (@JeffGrubb) May 2, 2022

Why they're unlikely to end up selling.

[BananaKing]

How much are WB asking for?

[the-pi-guy]

How much are WB asking for?

They were asking for about $4 billion last time.

AT&T seeks sale for Warner gaming unit, could fetch about $4 billion, sources say

Matt on ResetEra suggests that it could be a lot lower now, because the new president does not care at all about the gaming branch.