Looks like some studios are about to have a serious shake-up in their foreseeable future. Tech company giant AT&T has announced that is has reached an agreement with Discovery in a special sale/merger deal. The focus of this transaction is for AT&T to sell off Warner Media which will then merge with Discovery which will then result in creating a brand new “premier, standalone global entertainment company.” Both IGN, and Stephen Totilo of Axios Games reported on the implications of this sale due to the fact that AT&T will also be selling off part of Warner Bros. Interactive Entertainment, also known as WB Games, which consists of several high profile studios.
WB Games is getting broken up somehow due to AT&T’s WarnerMedia-Discovery sale/merger. “Some of the gaming arm will stay with AT&T and some will go with the new company,” rep tells Axios’ @sarafischer. No further info. WB Games lists 11 studios, games for all kinds of IP, devices
— Stephen Totilo (@stephentotilo) May 17, 2021
Last year it was reported that AT&T might no longer be interested in selling off their gaming division. However with this new sale/merger, things have apparently changed as now it sounds like a portion of it will be sold to Discovery. AT&T did not discuss how this process would work, but it was revealed that the deal is anticipated to be approved by sometime in 2022. The price that Discovery is paying for in transaction is quite the hefty one, a staggering $43 billion, as well as a promise of it’s shareholders getting roughly 71% stock of the newly established venture.
As we already mentioned, WB Games is the parent company to several big studios which includes Rocksteady (Batman: Arkham), NetherRealm Studios (Mortal Kombat, Injustice), and Monolith (Middle-Earth: Shadow of Mordor/Shadow of War). While it’s likely that the majority of these studios will remain with AT&T, the real question is who isn’t going to stay? Obviously a lot of things will need to be worked out before anything concrete is established. Hopefully we’ll find out more about this new deal before the year is over.