AT&T announced today it will spin off WarnerMedia and merge it with Discovery in a $43 billion deal. The new company will oversee CNN, HBO, TNT and TBS, Discovery's Food Network, HGTV, and others.
On the gaming side, it is being reported that Warner Bros. Interactive Entertainment is being impacted in a big way. A spokesperson told Axios writer Sara Fischer that the Warner Bros. gaming division is being split up as some developers will take with AT&T and others will join the new company.
"Some of the gaming arm will stay with AT&T and some will go with the new company," said the representative.
Warner Bros. Interactive Entertainment has 11 studios. This includes Mortal Kombat developer NetherRealm Studios and Batman Arkham series and Suicide Squad: Kill the Justice League developer Rocksteady Studios. Also part of WBIE is LEGO games developer TT Games, Middle-earth: Shadow of Mordor and War developer Monolith Productions, Hogwarts Legacy developer Avalanche Software, and more.
At this time it isn't known who will remain with AT&T and who will be joining the new company.