According to the Financial Times, Warner Bros. is considering selling part of its video game business in order to improve its financial position.

Despite the success of Hogwarts Legacy and the more than apparent total failure of Suicide Squad, Warner Bros. Discovery’s position in video games is peculiar. The company has not been in a very comfortable position for quite a few years now. WBD needs profound changes to reverse the negative trend. As far as games are concerned, their path leads in the direction of “game as service” and not so much in the context of releasing single-player titles, as the board of directors confirmed months ago.

However, in the last few hours, an exciting piece of information has come to light from the Financial Times. According to this, Warner Bros. is considering selling its stake in the video game business, as well as other smaller assets of the company.

WBD’s board wants to avoid breaking up the company at a time when the company’s stock has fallen nearly 70% since 2022.

CEO David Zaslav and CFO Gunnar Wiedenfels are both evaluating “all options” to stop the steady decline. One of these is the sale of smaller devices, which may also affect video games. In the event that a publisher is interested and wants to buy a stake in Warner Bros. Games, it could be an internal IP or studio. The possibility of spinning off film and TV studios from the streaming business (Max) has also been raised but is not considered viable due to significant operational and legal challenges.

Warner Bros. is considering selling its stake in the video game business

Following the 2022 merger of Warner Bros. Discovery, they have struggled to convince Wall Street of the company’s viability and strength. Even so, problems arose from the ineffectiveness of reducing costs and repaying debts. This has led the board to believe that WBD’s market capitalization should be higher at around $60 billion, compared to the current $18.4 billion. In any case, according to Zaslav, the ideal would be to sell smaller assets in order to improve the financial situation and strengthen the market position. There is a real chance that some of the video games will be affected by this…

Source: Financial Times