Warner Bros. is considering selling part of its gaming business to improve the company's financial position. Despite the success of Hogwarts Legacy, other projects, such as Suicide Squad: Kill the Justice League, turned out to be unprofitable.
Warner Bros. Strategy.
Financial difficulties and search for solutions
According to information Financial Times, Warner Bros. executives. is actively looking for ways to improve the financial condition of the company. Since its founding in 2022, the stock price of Warner Bros. Discovery, the division responsible for the gaming industry, fell by almost 70%.
Alternatives to Splitting a Company
Initially, management considered dividing the company, but abandoned this idea due to the high risk of litigation. Instead, Warner Bros. plans to sell less significant assets.
Potential asset sales
Possible options include the sale of the Polish TV channel TVN or part of Warner's gaming business, which owns the rights to games about Harry Potter. The most successful project was Hogwarts Legacy, which became one of the best-selling games of 2023. In the first two months after release, players spent more than 406 million hours in it, and sales for the first quarter of 2023 brought the company over $1 billion.
Cost optimization strategy
Since its inception in 2022, Warner Bros. Discovery focused on cutting costs and paying off debt. The company carried out several rounds of staff reductions and sold a number of assets, including All3Media.
Failures in the gaming industry
The decision to sell assets may be related to the unsuccessful launch of the Warner Bros. project. Games - Suicide Squad: Kill the Justice League. The game, released in February 2024, became one of the company's biggest failures, causing losses of $200 million. Originally Warner Bros. planned to stop supporting the game after the fifth season, but later decided to extend it for another year.
Glossary
- Warner Bros. Discovery is an American multinational media and entertainment company.
- Hogwarts Legacy is an action/RPG computer game based on the Harry Potter universe.
- Suicide Squad: Kill the Justice League is a third-person shooter video game developed by Rocksteady Studios.
- TVN is a Polish commercial television channel.
- All3Media is a British independent television, film and digital production and distribution company.
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What measures is Warner Bros. taking? to improve your financial situation?
Why Warner Bros. abandoned the idea of dividing the company?
What game project from Warner Bros. has been the most successful recently?
What challenges did Warner Bros. face? in the gaming industry?
How the stock price of Warner Bros. gaming division has changed. Discovery?
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Discussion of the topic – Crisis at Warner Bros.: Sale of gaming business on the horizon
Warner Bros. is considering selling part of its gaming business to improve the company's financial health, despite the success of Hogwarts Legacy.
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Olivia
What news! Warner Bros. ready to part with part of the gaming business? 😱 What about Hogwarts Legacy? This is a real hit!
Hans
Yes, Olivia, Hogwarts Legacy is a real gem. But it seems that even such success does not save the situation. I wonder who might buy a share of their gaming business? 🤔
Amélie
Maybe this is for the better? A new owner could breathe fresh life into the Harry Potter franchise. Imagine what other games could come out! 🧙♂️✨
Carlos
I agree with Amélie! Although it's a shame that Warner Bros. loses such potential. I wonder how this will affect future projects in the Harry Potter universe? 🎮
Giuseppe
Ha! Again these corporations with their games. It would be better to read books than to play these Potter games of yours. These virtual worlds are of no use.
Olivia
Giuseppe, don't be such a grump! 😄 Games can also be educational and educational. And Hogwarts Legacy is a whole world of magic and adventure!
Anastasia
I'm more concerned about the fate of Warner Bros. employees. Games. I hope that they will not be forgotten when the assets are sold. After all, they are the ones who create these amazing game worlds! 💪
Hans
Great point, Anastasia! Indeed, it is important that talented developers are not harmed. Maybe this is even a chance for them to create something new and interesting under a different brand? 🚀