Recently AT&T revealed they were looking to divest themselves from the video games industry. In doing so, they plan to sell off as a lump package Warner Brothers Games, with a projected sales price of around four billion dollars. Their interest in selling their gaming division originates not from any issue impacting the industry or market, but as a result of AT&T’s monumental debt load.
Totaling over one hundred fifty billion dollars, it has $10,004,092,386 owed this year and an additional $8,505,559,000 owed in 2021 with 2022 following the trend. It is entirely likely AT&T could go bankrupt from an inability to pay this massive debt load, but right now they have begun cost-cutting and liquidation to stay solvent.
In previous coverage, I speculated based on behavioral patterns, Microsoft would be a major contender to be the buyer. At the time, it was an educated guess, but if the current talk is accurate, they are moving ahead with their interest in purchasing WB Games.
Apparently Microsoft is “Kicking the tires” regarding AT&T’s WB deal.
Which means they’re looking into it to see if it’s worth it.
Microsoft would be a great choice.
— The Slasher41 (@HotTakeMaster) June 14, 2020
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Do note this comes from unverified insiders from Resetera. A site that is known for harboring pedophiles and being the public discussion board of Game Journo Pros. Thus you should take it with a grain of salt, but the information contained within is more probable than it is not. As it would be strange for Microsoft not to take an interest in gaining a significant lead this next generation.
Word currently is they are kicking the tires, or in more common business prose, they are examining if the buy out would be in their best interest. Most importantly, would be what if any Intellectual properties would come with the sale and for how long would those properties be exclusive. Whether it comes with Batman/DC and Harry Potter or just IPs owned by the studios dramatically impacts the value of the offering.
Secondly, they would be evaluating what talent and technology they would acquire from the purchase. If Microsoft or any buyer for that matter determines they will have to invest more than it is worth to whip the studios into shape, then they naturally wouldn’t be to incline to make the purchase.
Though not mentioned, it is entirely likely Sony is “kicking the tires” as well for the same reasons.
Rumor Evaluation: Likely True
This rumor has two things going for it. First, it doesn’t cost much to look, and AT&T is likely being more than helpful with any questions fielded to them. Secondly and more importantly, Microsoft, along with Sony, needs exclusives for the next generation and has demonstrated a willingness to purchase other companies.
For this rumor to not be true, it would require extreme and gross incompetence on the part of Microsoft’s executives. It would mean they chose to pass on an opportunity to get the exclusive rights to the DC universe for gaming. Allowing Xbox Series X to be the DC platform for at the very least the next generation.
It is entirely possible the sale doesn’t go through for a multitude of causes, but the idea they wouldn’t consider it is absurd.