Written by 5:56 pm Gaming, News Views: 0

AT&T Wants To Sell Its Warner Bros Gaming Unit

AT&T is considering a sale of their Warner Bros. Interactive digital technology company in an arrangement that will raise about $4 billion, according to people familiar with the matter.

Take-Two Interactive Software, Electronic Arts and Activision Blizzard both shared interest in purchasing the gaming company, said the men, who requested not to be identified because the talks are private. No contract is assured or inevitable, two sources have reported.

Inside Warner Bros, several of the video game names. Interactive was linked to intellectual properties held by Warner, namely “Harry Potter,” “Battle of Thrones” and “The Lego Movie.” The group also controls the shows “Mortal Kombat” and “Scribblenauts.” A deal could involve a trade licensing agreement where AT&T could continue to earn revenue from its IP, the people said.

John Stankey, the former WarnerMedia CEO, is set to replace Randall Stephenson as AT&T’s new chief executive on July 1. Stankey may seek to sell assets after Elliott Management, an activist hedge fund, took a stake of $3.2 billion last year, pushing for divestments and changes in leadership.

Elliott called on AT&T to offer non-core assets which include DirecTV, which was not in lieu of pursuing a Stankey transaction. Stankey said at Morgan Stanley’s Technology , Media & Communications Conference in March, AT&T works on “a lot of research regarding portfolio rationalization.”

AT&T purchased Time Warner in a transaction that closed in 2018 for $109 billion, and has a debt of around $165 billion. New Hulu CEO Jason Kilar assumed the role of CEO of WarnerMedia on May 1.

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