Back in 2018, AT&T purchased Time-Warner which is the parent company of Warner Bros. Interactive Entertainment for $108.7 billion, and along with it, came a large chunk of Time-Warner departments. This has led the current owners of the company to try and sell what they considered to be non-essential assets of the company in order to recuperate some of the money, however, that decision has since been changed.
The news about AT&T selling the gaming division first appeared in June of this year with a potential cost of it being around $4 billion. Many of the big names in the video game industry such as Electronic Arts, Take-Two, Activision Blizzard, and even Microsoft were among the potential buyers but it would appear that the AT&T are no longer wanting to sell Warner Bros.
At the moment of writing this, we have no official information regarding the reasons behind the sale cancelation, but there are a couple of things that have more than likely contributed to AT&T making this decision.
Warner Bros. Interactive Entertainment is the publisher of many popular video game franchises such as the Batman Arkham franchise, Mortal Kombat, and many Lego crossovers including Lego Star Wars. According to AT&T, the gaming division has a lot of growth potential and could become a very valuable asset as time passes. A new upcoming Harry Potter game could also be a reason for AT&T’s decision. Harry Potter is a very popular franchise and according to some sources, this game will be different from all previous games and will allow players to swap between characters and explore the magical world in an RPG fashion.
Another possible reason could be the ongoing pandemic of COVID-19. With the cinemas and theatres being closed, people are forced to look for other forms of entertainment. Many of them are finding it in gaming which has made video game sales go through the roof.