To preserve the integrity of the company, Warner Bros. is willing to part ways with a portion of its gaming business.
According to data from the Financial Times, Warner Bros.' management is seeking ways to improve the company's financial situation. The stock price of Warner Bros. Discovery, the division involved in the gaming industry, has plummeted nearly 70% since its inception in 2022.
Top executives considered the option of spinning off the company but dismissed this plan due to the risk of multiple lawsuits. Instead, the company intends to sell off smaller assets.
Potential options include the sale of the Polish TV channel TVN or a stake in Warner's gaming business, which holds the rights to Harry Potter games. The most successful product so far has been Hogwarts Legacy — one of the best-selling games of 2023. In the first two months after its release, players logged over 406 million hours in the game, and retail sales for the first quarter of 2023 generated over 1 billion dollars for the company.
Since its establishment in 2022, Warner Bros. Discovery has focused on cutting costs and paying down debt. The company has undergone several rounds of layoffs and sold off some assets, including All3Media.
The decision to sell assets may be linked to the lackluster launch of another Warner Bros. Games project — Suicide Squad: Kill the Justice League. Released in February 2024, the game turned out to be one of the company's biggest failures, incurring a loss of 200 million dollars. Initially, Warner Bros. considered ending support for the game after its fifth season but later decided to extend it for another year.
Source: 80.lv
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