Unclear future for WB Games
AT&T has agreed to spin off WarnerMedia with Discovery, Inc to form a new standalone streaming service media company.
Discovery CEO David Zaslav will run the combined business, according to Monday's announcement. "I think we fit together like a glove," Zaslav said at a virtual press conference.
The decision was made in large part to compete with Disney and Netflix.
A spin-off will help AT&T prioritize its broadband business and pay down its huge debt load. "AT&T would receive $43 billion (subject to adjustment) in a combination of cash, debt securities, and WarnerMedia's retention of certain debt," Monday's announcement said. Zaslav said Monday the new media company will start with $55 billion in debt.
Now the official announcement by Zaslav does not inform us of how it will impact WB Games and its in house studios, such as Rocksteady Games, Monolith Prodcutions or NetherRealm Studios. WB Games is apart of WarnerMedia.
Axios News’ Stephen Titilo tweeted the following:
An interesting tweet regarding WB Games, but we will wait for future clarification that will confirm or deny the above claim.
It must be pointed out that the spin-off media company is not expected to be finalised until sometime in 2022 and must be approved by shareholders and federal regulators. Hence, we will reiterate on having to wait for further news to gain a clear understanding on the future of WB Games.
What do you all think about this deal?