Microsoft is reportedly interested in acquiring the gaming division of Warner Bros. to bolster its Xbox brand. The report comes way of The Information, and on the back of a report from last month claiming that AT&T was looking to offload WB Games, with Activision, EA, and Take-Two all expressing interest in striking a deal. The report doesn’t divulge its sources, but notes it’s information derived from two individuals familiar with the situation.
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If the two parties are able to strike a deal, this not only means Xbox would add studios like Rocksteady and NetherRealm to its first-party family, but it would get gaming rights to series like Mortal Kombat, Harry Potter, Batman, Suicide Squad, LEGO, The Lord of the Rings, Game of Thrones, and much more. However, it won’t be a cheap acquisition. Further, Xbox wouldn’t own any of IP, but simply be licensing it from Warner Bros, which represents less profit potential.
The report echoes the aforementioned report from June, noting the deal could cost anywhere from 2 to 4 billion USD. This means that if a deal is reached between this price range, it could be Xbox’s most expensive acquisition, outdoing its acquisition of Mojang and Minecraft.
According to the report, Warner Bros. parent company, AT&T is interesting in offloading WB Games to help reduce its $154 billion of debt. To find a suitor, the company has reportedly brought on investment bank LionTree to help find interested parties. That said, while multiple parties have expressed interest, a deal is still nowhere near being completed.
All parties involved in the report have declined to comment, and it’s unlikely this will change. Meanwhile, it’s important to remember to take everything here with a grain of salt. Nothing here is official, everything is subject to change, and as the report notes, a deal isn’t imminent.
As always, feel free to leave a comment or two or 46 letting us know what you think or hit me up on Twitter @Tyler_Fischer_ and let me know over there. Of the four parties mentioned above, who would you like to see gobble up WB games?
