AT&T was reported earlier this year to be looking for a buyer for Warner Bros. Interactive Entertainment, its video game unit, as it sought to pay off its nearly $200 billion debt. Several companies had since expressed interest in buying the game studio, including Electronic Arts, Activision Blizzard, Take-Two Interactive, and Microsoft.
Now, a new report from Bloomberg indicates that AT&T will no longer sell its video game division, which would have been valued at around $4 billon if a deal had pushed through. The main reason for AT&T"s latest decision is the "growth potential" of Warner Bros. Interactive as it underwent a leadership overhaul in July, with Chief Operating Officer John Stankey replacing Randall Stephenson as the Chief Executive Officer.
Warner Bros. Interactive comprises studios such as NetherRealm, Rocksteady, and Monolith Productions. Earlier this year, AT&T reportedly tapped LionTree Advisors to kick off the sale process for that unit. Several factors were supposed to have prompted AT&T to retain its game studio, including the upcoming release of a Harry Potter game and a growing demand for online games amid the COVID-19 pandemic. There"s a possibility of AT&T going back on its decision to not sell the video game division though.
Source: Bloomberg