To preserve the company’s integrity, Warner Bros. is ready to part with part of its gaming business.
Pros data According to the Financial Times, Warner Bros. management is looking for ways to improve the company’s financial condition. The share price of Warner Bros. Discovery, the company’s gaming division, has fallen by almost 70% since its inception in 2022.
Top management considered splitting the company, but rejected this plan due to the risk of numerous lawsuits. Instead, the company plans to sell smaller assets.
Among the possible options are the sale of the Polish TV channel TVN or a share of Warner’s gaming business, which owns the rights to the Harry Potter games. The most successful project was Hogwarts Legacy — one of the best-selling games of 2023. In the first two months after its release, players spent more than 406 million hours in the game, and retail sales in the first quarter of 2023 brought the company more than $1 billion.
Since its creation in 2022, Warner Bros. Discovery has focused on cutting costs and paying down debt. The company has made several waves of layoffs and sold some assets, including All3Media.
The decision to sell assets may be related to the unsuccessful launch of another Warner Bros. Games — Suicide Squad: Kill the Justice League. The game, released in February 2024, became one of the company’s biggest failures, causing losses of $200 million. Initially, Warner Bros. considered discontinuing support for the game after the fifth season, but later decided to extend it for another year.
Source: 80.lv