AT&T plans to sell its Warner Bros. gaming unit, according to media reports.
CNBC reported on Friday that the telecom company wants to sell Warner Bros. Interactive Entertainment, based in Burbank, for about $4 billion. It cited unnamed sources because the discussions are private.
Take-Two Interactive Software Inc. in New York, Electronic Arts Inc. in Redwood City and Activision Blizzard Inc. in Santa Monica have all expressed interest in buying the unit, the news website said.
Warner Bros. Interactive has design studios in the U.S., Canada and England. It owns game titles that include “Mortal Kombat,” “Harry Potter: Wizards Unite” and others tied to its intellectual property, including “The Lego Movie” and “Game of Thrones.”
A deal might involve a commercial licensing agreement where AT&T can continue to get revenue from its IP, CNBC reported, citing its sources.
AT&T is looking to divest assets to service its almost $200 billion in debt, CNBC said.
AT&T, in Dallas, acquired WarnerMedia LLC, which owns Warner Bros. Interactive, two years ago in a deal valued at $85 billion.