- Warner Bros Discovery has not been able to live up to its potential.
- Chief Executive David Zaslav is working on a plan to bring the company back on track.
- Sources state he is considering selling a stake in the gaming business to prevent splitting the TV and film divisions.
Warner Bros Discovery is reportedly gearing up to make drastic changes to its business. This division has not had the most success over the last two years, and David Zaslav is now considering extreme measures to minimize losses.
The company is considering selling off part of its gaming business amid other changes.
Why it matters: Warner Bros owns some of the industry’s biggest IPs. Its presence in the gaming market has been inconsistent recently, but a new stakeholder would have much to gain from such a deal.
Currently, IPs like Harry Potter, Mortal Kombat, and more fall under Warner Bros. However, selling off a stake in the gaming division would not lead to ownership of these IPs. Instead, the company seems to be looking at a co-ownership approach.
This could mean that the new stakeholder would be able to gain ownership of a few of the studios under the gaming division, including Rocksteady, NetherRealm, and Monolith.
According to the Financial Times, this decision is being made to prevent splitting up the movie and TV divisions. Warner Bros is hoping investors will patiently observe these moves as the company works on bouncing back.
Warner Bros believes the company’s stock should be valued at $25/share despite its current price of $7.88/share.
Warner Bros’ gaming division has shown mixed results recently, but it would be very lucrative for anybody interested in buying a stake. For starters, both Mortal Kombat 1 and Hogwarts Legacy ended up being huge releases last year.
Suicide Squad went the opposite route this year, but the potential of working on these IPs is limitless. Perhaps Xbox will be interested in buying a stake since the gaming giant has been known to buy up major publishers in the past.
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[News Reporter]
Avinash is currently pursuing a Business degree in Australia. For more than three years, he has been working as a gaming journalist, utilizing his writing skills and love for gaming to report on the latest updates in the industry. Avinash loves to play action games like Devil May Cry and has also been mentioned on highly regarded websites, such as IGN, GamesRadar, GameRant, Dualshockers, CBR, and Gamespot.
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