The Financial Times has published a report on Warner Bros Discovery’s ongoing share price decline. WBD was formed in 2022 by a merger of Warner Bros. and Discovery, the goal being to help the two companies compete against the likes of Netflix and Disney.
Now though, Warner Bros Discovery is apparently considering selling a chunk of its gaming business.
According to the Financial Times, the company has been seeking ways to reverse declining stock prices, including a break-up plan. However, that split would apparently present too many challenges and result in potentially years of legal challenges.
Instead, the Financial Times says WBD are “looking to offload smaller assets.” Citing “people familiar with the matter,” the Financial Times say they are considering “offers to sell Polish broadcaster TVN or a stake in Warner’s video games business.”
The report rightfully points out that Warner Bros. gaming division holds the rights to Harry Potter. Keep in mind that a stake in the gaming division doesn’t mean all of it, so WB could retain the rights to many of its biggest IP, including Mortal Kombat and Harry Potter. A “stake” could also mean they are simply looking for investors willing to provide capital in return for a cut of the profits.
It’s fair to say that Warner Bros. has seen mixed success with its gaming division. On the one hand, Hogwarts Legacy was the best-selling game of 2023 and is still selling millions of copies in 2024. On the other hand, Suicide Squad: Kill the Justice League was a disaster that cost the company $300 million. Bafflingly, Warner Bros. themselves said they wanted to make Hogwarts Legacy into a live-service game, right around the time Kill the Justice League, itself a live-service, was crashing and burning.
In the middle of all that, they also launched Mortal Kombat 1. Last we heard, it had sold 3 million units in its first few months. We haven’t heard anything since then, though. MK1 is also due to get a massive new expansion this year.