Is Warner Bros. Discovery Selling Its Gaming Division?

Recent rumors suggest that Warner Bros. Discovery (WBD) might be considering selling a stake in its gaming division, WB Games.

The Financial Times report suggests that Warner Bros. Discovery is exploring options to off-load some of its smaller divisions. Among the options on the table is WB Games.

This move comes as the company grapples with an over 70% drop in stock price (from $14 in August 2023 to around $8 now), prompting CEO David Zaslav and CFO Gunnar Wiedenfels to take action to prevent a company break-up.

Per FT, selling the games division could be one of the easier moves for WBD to make without triggering legal or content-related issues.

This division is home to some of the biggest intellectual properties (IPs) in gaming, such as Batman, Mortal Kombat, and Harry Potter.

How Have WB Games’ Recent Releases Done?

After the massive success of “Hogwarts Legacy” in 2023, the company didn’t achieve the same level of success with its subsequent titles.

“MultiVersus” received mixed responses, while “Suicide Squad: Kill the Justice League” in 2024 was a complete disaster.

Although “Mortal Kombat 1” has been quite a financial boon for WB Games, there has been some controversy about its paid DLC and microtransactions.

Is Warner Bros. Discovery Selling WB Games to Microsoft?

The current scenario brings back memories of 2020 when WB Games was rumored to be for sale under AT&T’s ownership.

Back then, tech giants like Microsoft and game publishers like Take-Two showed interest in acquiring the division, with potential deals valued at up to $4 billion.

However, the sale never materialized, allowing WB Games to continue operating as a standalone entity.

However, Microsoft’s interest in WB Games never faded. Leaked documents from 2023 revealed that the tech giant was interested in bringing titles like Gotham Knights, Mortal Kombat 1, and Suicide Squad to Game Pass for substantial sums ranging from $50 to $250 million each.

What Are the Implications for Future Projects?

If WB Games is sold, it might impact the projects that are currently in development.

Currently, a single-player open-world action game based on the DC Universe character “Wonder Woman” is in development under Monolith Productions. Announced in December 2021 at The Game Awards, it the supposed to be released after Suicide Squad. A last-minute change in publisher could affect the game’s development and perhaps delay the game.

There are also rumors of a sequel to “Hogwarts Legacy,” as job listings by Avalanche Software have been found online last week. The selling could impact this project too.

As of now, the future remains uncertain. WBD has said it wants to stay in the gaming industry, especially with live-service games, but these new rumors suggest that the company’s stance may be shifting.

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