AT&T reportedly opened initial talks to sell its gaming business for up to $4 billion as part of ongoing efforts to shed non-core assets and pay down debt.
CNBC reported gaming giants Electronic Arts (EA), Activision Blizzard and Take-Two Interactive Software were interested in Warner Bros Interactive Entertainment, adding a deal could could include a provision allowing AT&T to collect licensing revenue from its gaming titles.
AT&T is engaged in a campaign to divest peripheral assets and use the funds to pay down debt. In December 2019 it noted deals this year could involve the sale of its regional sports networks, properties and towers as it aimed to cash-in on between $5 billion and $10 billion-worth of assets.
In 2019 it unveiled plans to sell its network assets in Puerto Rico and the Virgin Islands for $1.95 billion and sold a minority stake in Hulu for $1.43 billion.
Analyst company LightShed Partners identified AT&T’s gaming division as a “logical acquisition” for EA in a reasearch note issued in January.
“Given that much of the game portfolio is Warner-owned IP, we believe EA would be a good fit, as it is used to licensing and working with third party IP.”Subscribe to our daily newsletter Back