AT&T has abandoned its plans to sell WB Games, sources tell Bloomberg.
WB Games will remain part of AT&T's new WarnerMedia division, sources familiar with the matter say. Early reports suggested AT&T would sell WB Games in a sweeping $4 billion deal, which would include key development studios and licensing rights to DC properties, Harry Potter, and more. Companies like EA, Activision-Blizzard, and Take-Two were previously interested in buying.
The news is welcome for fans who are awaiting big new WB titles, including WB Montreal's new Gotham Knights, Rocksteady's new Suicide Squad live game, and Avalanche's unannounced Harry Potter RPG. Reports originally said AT&T would sell of WB Games in an effort to shave its massive $152 billion debt.
AT&T now says the debt is very manageable thanks to low sub-2% interest bonds that it's secured to help pay down its debt.
"So the bond market, not only are interest rates low, but they have faith, they are convinced we are a good credit risk. You've seen that in the last three debt offerings we've done, over $30 billion in the last two months, all in very long terms, all very good rates, so quite frankly there's a big section of the bond market that believes in our ability to generate cash year-in and year-out for a very long time," AT&T Chief Financial Officer John Stephens.
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