Warner Bros. Games is reportedly being split up due to the recently announced merger between WarnerMedia and Discovery, Inc.
AT&T, the parent company of WarnerMedia, announced on Monday (May 17) that it would spin off the multimedia company and merge it with Discovery, Inc. The US$43billion deal will give birth to a new “premier, standalone global entertainment company” to rival streaming platforms such as Netflix and Disney+.
The deal, however, will also reportedly affect WarnerMedia’s gaming arm, Warner Bros. Games. Although the video game publisher was not mentioned in AT&T’s announcement, a spokesperson told Axios reporter Sara Fischer that the subsidary will be broken up due to the merger.
“Some of the gaming arm will stay with AT&T and some will go with the new company,” said the spokesperson. It is currently unclear which of the 11 studios under Warner Bros. Games will stay with AT&T, and which will be handed over to the new company.
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
Warner Bros. Interactive Media currently comprises popular developers such as RockSteady Studios, NetherRealm Studios and TT Games, alongside numberous WB Games-branded studios. A large number of these studios are currently working on upcoming major games, but it is currently unclear if the releases will be affected by the merger.
Prior to the merger announcement, RockSteady Studios annocuned that it is developing a new Suicide Squad game, targeted for a 2022 release. Avalanche Software’s Hogwarts Legacy has also been delayed to 2022, alongside WB Montreal’s Gotham Knights.
In June last year, AT&T announced that it was looking to sell WB Games in order to pay down outstanding debts. However, the company later retracted its statement in September, saying that the company was “too valuable to unload during its effort to pay down debt and streamline”.