AT&T has placed the Warner Bros. Games up for sale. The deal is expected to be in the $4 billion range which limits the number of studios who can afford the deal.

The game portfolio is expensive which is why the studio is up for sale. AT&T wants to focus on other business segments while reducing the roughly $200 billion debt they have. This includes several studios such as NetherRealm, Rocksteady and Warner Bros. Montreal.

AT&T acquired Time Warner for $109 billion in a deal that closed in 2018, and has about $165 billion in debt. Former Hulu CEO Jason Kilar took over as Warner Media’s CEO on May 1. 

Take-Two Interactive, Electronic Arts and Activision Blizzard have all expressed interest in buying the unit, which owns titles including “Mortal Kombat” and “Harry Potter: Wizards Unite”. Microsoft Games has also considered the assets. So far little is known about interest in a deal due to the private nature of the discussions.

Microsoft has acquired several new game development studios over the last two years, including Double Fine Productions, Obsidian Entertainment, Playground Games, Ninja Theory and others as a part of growing Xbox Game Studios.

Sadly the studio is not adequately funded to consider such a deal. Publishing Batman etc would earn a lot of cash but $4 billion is a huge pile of franklins.