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Microsoft Expresses Interest in Acquiring Warner Game Unit

tryDEATH

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TakeTwo are 14 Billion...... Sony has 31 Billion in Cash on hand alone. They could do it, not likely to spend that much though, even for MS it's a huge acquisition.

Sony are 88 Billion...... Microsoft has 136 Billion in Cash on hand alone. 4 Billion for MS represents less than 3% of their Cash calling it huge acquisition is a hyperbolic in terms of money and is more like chump change for MS.
 

Bryank75

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Sony are 88 Billion...... Microsoft has 136 Billion in Cash on hand alone. 4 Billion for MS represents less than 3% of their Cash calling it huge acquisition is a hyperbolic in terms of money and is more like chump change for MS.
We were talking about TakeTwo hypothetically... which is a lot more. But yeah I agree with what you're saying...
 
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quest

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Sony are 88 Billion...... Microsoft has 136 Billion in Cash on hand alone. 4 Billion for MS represents less than 3% of their Cash calling it huge acquisition is a hyperbolic in terms of money and is more like chump change for MS.
I dont think Microsoft will do it but we seen them waste more money than this before on a near dead internal business when they dropped 7.2 billion on Nokia for example for windows phone that was already dead. That would be the most epic ending i could imagine to the show in 2 weeks a batman trailer with bold letters console exclusive and fade to black.
 
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tryDEATH

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By offering significantly more exclusive games/value.

People go on about how people went to PS4 due to exclusive games, now that MS might end up with exclusives all of a sudden people won't switch to that console and those exclusives must be multi-platform, you really can't please them they just keep shifting the goal posts as to what MS should do to regain that huge market share.they lost this generation.
 

John254

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If you think those studios are worth 4 billion with out a dc licensing deal i have a bridge to sell you. That could by 16 insomniac type deals only rocksteady is on that level they only do 1 type of game. This is a1 1.0 - 1.5 billion dollar deal without a DC type license deal. Im probably over valuing studio type IPs oh well but far shy of 4 billion
Cool 😂
Not saying that 4 billion isn't too much, but claiming that only Rocksteady is on par with Insomniac is pretty funny (and i consider Sunset Overdrive to be one of the best game this gen)
I would like to welcome you to the company of NetherRealms probably best fighting game devs out there, Monolith who created one of the most innovative mechanic in open world games this gen and also WB Montreal who made Batman game on par with Spider-Man. Can't talk about Avalanche but their HP game sounds promising...
 
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Kagey K

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People go on about how people went to PS4 due to exclusive games, now that MS might end up with exclusives all of a sudden people won't switch to that console and those exclusives must be multi-platform, you really can't please them they just keep shifting the goal posts as to what MS should do to regain that huge market share.they lost this generation.
Really if you think about it, if MS does make this acquisition and make the games exclusive, everybody wins since they all have gaming PCs to play the Xbox exclusives anyway.

Nobody gets left out.

 
x1

theclaw135

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Who owns the IPs ? WB or the studios ?

If the studios without the IPs it's not worth it for Microsoft

The full list of game IPs owned by WB stretches back to the mid 1980s. They have most of the arcade games dating from after Warner split up Atari.
 

SaucyJack

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Out of interest, what is a corporate finance professional?

I mean a cashier at Costco could be spinned as being a sales professional within an international trading corporation.

I was a Director at a Big 4 accounting firm before leaving to work in the banking sector 20 years ago.
 

Genx3

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4 billion is not 2 billion, there are limits. Mine craft at 2 billion is an easier and better investment since the franchise is basically a household name and multiplatform. Pretty sure MS got their investment back already.

4 billion for WB with no guarantee of keeping all the licenses, and company talent potentially leaving, is not something you go out and buy for your platform. They can show interest but I don’t think it’s going to amount to anything.

I've stated multiple times in different posts that the studios without the IP are not even worth $2 Billion but easily worth $4 Billion if it includes the IP.

So we're in agreement there.
 

Genx3

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As a Microsoft shareholder I do not like this at all.
Not for $4bn. $2bn and an all licensing IPs would be okay, tho.

I felt the same way when MS decided to purchase Mine Craft.
This could encompass a few more big IP than just Mine Craft.
If MS get the DC IP exclusivity tied to this deal the way Sony has Spiderman exclusivity plus HP and LOR I think its easily worth the $4 Billion. Mortal Kombat and other Midway IP would just be Gravy on top.
If it makes Game Pass a must have subscription to people that currently do not subscribe then its easily worth it imo.
 
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Obviously there will be more game studios if Microsoft Acquires Warner Bros.

 
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eastwood333

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This deal makes a lot of sense for MS. Monolith is located right next to MS headquarters in Seattle. Matt Booty has ties to Ed Boon/Midway/NetheRealm. NetherRealm could rotate between MK and KI. And WB Montreal is a highly talented studio that is on the doorsteps of being an elite studio. Hope their new Batman game turns out well.

I'd love a new FEAR from Monolith. Not sure who owns the Fear ip.
 

peter42O

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I wouldn't be surprised if Microsoft ends up acquiring WB Games including a long term exclusive licensing deal.
 

DavJay

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Microsoft always linked to something like this. EA, BioWare, THQ, etc. It’ll be cool though since all first party titles goes on game pass 😂
 

Greeno

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Even better if it does happen Microsoft can use that to come to a deal with Sony where Batman can be on Sony platforms and Spider-Man can be on Xbox platforms gamers win.
I really hope this happens. You just convinced me that Microsoft buying WB Games could actually be a good thing in the end.
 
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The Alien

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Itll be really interesting to hear the details when the dust settles.
  • How long will those licensing deals last? Even 10 years is only ~2-3 games per franchise.
  • Do games like MK, FEAR, etc. fully transfer? I understand the license needs for Batman, HP, LOTR, etc, but titles like MK, FEAR, Scribblenauts should be fully owned by new buyer.
  • I assume tech also transfers. Imagine seeing the Nemesis system in Gears of War or Halo games!!!! That tech should also fully transfer with sale.
  • There's a lot of good studios, but also some studios that can be used as support or sold off (some specialize in mobile).
This seems like a great fit for Microsoft for a number of reasons:
  • Obviously great game titles.
  • Not only great studios involved, but geographically fits with what Microsoft has been doing the past few years (UK, West Coast US - WA, CA).
  • Frankly, Microsoft needs a bombshell. This would register as that. It has industry shifting potential. Many thought that when Bethesda was discussed months back....I'd argue this is bigger than a Bethesda deal.
  • Lastly I do think Microsoft, of all players mentioned, would be least predatory of all. I cringe at the fact that Activision is involved.
Anywho...its gonna be a fun ride the next few months as this shit heats up. Microsoft end of July show...then we're off to the races with Sony and Microsoft having shows in August.
 

Ash Sparrow

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It could be game changing imo if MS got Warner, but I mean on paper it would be delicious for them. The WB titles would be perfect for getting people into the Xbox eco system, but maybe they'd keep some games non exclusive. The thing is utilization. Thats the part thats a little iffy. MS should be able to wrestle some market away from Sony with this deal, but even as an Xbox guy I know MS has a hard time running with a football.
 

Dnice1

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Yup, which would be the whole point of bolstering 1st party. Same reason Sony acquire Insomniac and puts Spiderman exclusively on PS4, which then went to sell over 10 million copies and who knows how many systems that single game sold for Sony.

There seems to be a double standard here. Sony fans want to scream "Xbox has no games". But when MS does significantly invest in studios, it's "but that makes no sense limiting it to only Xbox". "It would sell more being multiplatform!" My response is, well so would Spiderman. So would TLOU2. So would GoS or GOW.

Those games (as good as they look) would look even better on more powerful.
 

FacelessSamurai

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Didn't Warner Games buy Midway back in the day? I say MS should buy it and bring back San Francisco Rush!
 

Dlacy13g

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if MS pulls the trigger it will be similar to what we have seen recently from their studios. Some IP and games would continue to be multiplatform. MK likely follows a Minecraft path with maybe some exclusive Killer Instinct DLC. Batman I would almost guarantee goes a path similar to Spiderman and becomes exclusive to Xbox.
 

smithg5

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After thinking about this some more, I think this is going to happen. This is honestly a hard sell for the 3rd parties given the size and scope of this deal. Meanwhile it all makes a ton of sense for Microsoft. Batman, Harry Potter, LEGO, Mordor, MK, studios already successfully churning out products from this IP, plus that that huge back catalog...

My guess is that all the chatter about this early on was an attempt to raise the price for Microsoft.
 
Nov 5, 2017
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It could be game changing imo if MS got Warner, but I mean on paper it would be delicious for them. The WB titles would be perfect for getting people into the Xbox eco system, but maybe they'd keep some games non exclusive. The thing is utilization. Thats the part thats a little iffy. MS should be able to wrestle some market away from Sony with this deal, but even as an Xbox guy I know MS has a hard time running with a football.

IMO, if Microsoft is seriously considering buying WB... none of the games will be exclusive. This would be about bolstering their existing gamepass library as well as securing more day one releases and acquiring exclusive streaming rights for xcloud. The games will only be exclusive to Microsoft services, IE not available on PSNow or stadia, but will see be available for physical and digital purchase on playstation.

That is the only way I see this acquisition making financial sense for them.
 
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quest

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IMO, if Microsoft is seriously considering buying WB... none of the games will be exclusive. This would be about bolstering their existing gamepass library as well as securing more day one releases and acquiring exclusive streaming rights for xcloud. The games will only be exclusive to Microsoft services, IE not available on PSNow or stadia, but will see be available for physical and digital purchase on playstation.

That is the only way I see this acquisition making financial sense for them.
It does nothing for gamepass if they are on playstation. It is like netflix having thier day 1 series on hulu it make them a lot less valuable. They need to be exclusive to get people into the ecosystem. If they are on playstation there is zero reason for a playstation gamer to buy in. Minecraft prints money so it was an experiment. Sony showed how they treat crossplay ect there is nothing in it for Microsoft to spend billions to help Sony and not much profit its not minecraft level printing money. Sony is not going to allow crossplay-buy dlc so what does Microsoft get out of this 4 billion and Sony gets the most benefit. They get marvel and DC games on 1 platform.
 
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R3claimer117

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Straight from Rand... doesn't include the IP's except for MK......
15 studios all together!

There’s no real place on earth this gets done with anyone that buys it that doesn’t come with a ten year licensing agreement to help the buyer recoup their investment. This deal is coming with the licensing.
 
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Bryank75

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There’s no real place on earth this gets done with anyone that buys it that doesn’t come with a ten year licensing agreement to help the buyer recoup their investment. This deal is coming with the licensing.
According to him it's separate... 4 Billion for the 15 studios and the publishing business, all that would have to be let go, lots of lay offs.

Then the licenses are a different matter. Maybe a discount would be possible but the games being developed right now are locked in for all platforms, even a 10 year deal would be only 1 - 2 games probably.

I know for sure that he talks to Phil and others at Xbox.
 

Stuart360

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There’s no real place on earth this gets done with anyone that buys it that doesn’t come with a ten year licensing agreement to help the buyer recoup their investment. This deal is coming with the licensing.
To be fair, they did pay $500mil just for Rare, and that was like 20 years ago.
I'm not keen when Microsoft and Sony buy up these studios, Its one thing doing it when you have a smaller studio in financial difficulty, but at least PC gamers will get the games as well if Microsft buy them.
 

Bryank75

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To be fair, they did pay $500mil just for Rare, and that was like 20 years ago.
I'm not keen when Microsoft and Sony buy up these studios, Its one thing doing it when you have a smaller studio in financial difficulty, but at least PC gamers will get the games as well if Microsft buy them.
My question is, what happens if they don't get the IP's?
What do they do with all these studios?

Apart from MK of course...
 

Stuart360

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My question is, what happens if they don't get the IP's?
What do they do with all these studios?

Apart from MK of course...
Well MK usually sells 5+mil every 4 years. Instead of Injustice, they could get them doing Killer Instinct the other 2 years. Rocksteady, well they are proven devs, license or not. Same with some of the other studios. They would even get the complete backlog of Midway games i believe, which could add a ton of potential remaster/remakes etc. Besides i doubt Microsoft would have much trouble bying licenses.
 
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The best home for those studios from a mangerial/studio management perspective is Sony (considering also content target demographic) but it seems they're not interested. Outside of Sony and Nintendo no other publisher handles their studios and talent better IMO.

The big 3 from that pot are Monolith, Netherrealm and Rocksteady. Those are big gets for anyone. I don't trust any of the publishers in the bidding to make right for those studios. MS has a horrible record... Rare and 343 being perfect examples of big staffed studios that release mediocrity. On top of killed studios/projects etc etc. They got these fresh and young studios that we've yet to see output out of. As for the third party publishers I don't think anything needs to be said of them. They'll milk and create generic shit, not to mention shuffle talent and things around until they become unrecognizable. Their best home for all gamers was WB Games. MS and Take-Two are the lesser evils of the current bidding. The problem with Sony for gamers of other platforms is obviously exclusivity, which is why Xbox/PC gamers would want Sony to stay a million miles away. However, with Sony, quality is almost guaranteed. Can't say that with certainty for any of the other bidders.
 
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quest

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Well MK usually sells 5+mil every 4 years. Instead of Injustice, they could get them doing Killer Instinct the other 2 years. Rocksteady, well they are proven devs, license or not. Same with some of the other studios. They would even get the complete backlog of Midway games i believe, which could add a ton of potential remaster/remakes etc. Besides i doubt Microsoft would have much trouble bying licenses.
Problem is for 4 billion you could get a lot more studios for the money. Microsoft would never get its money back at that price with out IPs. They would be much better off with 12-16 insomniac deals than this and pick and choose. There is really 4-5 AAA studios here a billion each is outrageous.
 

Dnice1

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Sony are 88 Billion...... Microsoft has 136 Billion in Cash on hand alone. 4 Billion for MS represents less than 3% of their Cash calling it huge acquisition is a hyperbolic in terms of money and is more like chump change for MS.

According to Sony's March 31, 2020 earnings call they have 960billion Yen or $8.9 billion dollars cash on hand.
 

tryDEATH

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According to Sony's March 31, 2020 earnings call they have 960billion Yen or $8.9 billion dollars cash on hand.

I was alluding Microsoft could literally buy Sony as they're valued at around $88 Billion and Microsoft has $137 Billion in Cash the most of any company in the world.

This really is pocket change for Microsoft, it will all come down how serious they are about their vision of taking over the living room, which is why Microsoft got in the console business in the first place.

This notion that Xbox would want to keep these games multi-platform is hilarious and its borderline delusional, as that would defeat the whole purpose of the acquisition when they could let one of the 3rd party's buy it and not have to front the $4 Billion and still get the games.
 
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It does nothing for gamepass if they are on playstation. It is like netflix having thier day 1 series on hulu it make them a lot less valuable. They need to be exclusive to get people into the ecosystem. If they are on playstation there is zero reason for a playstation gamer to buy in. Minecraft prints money so i was an experiment. Sony showed how they treat crossplayect there is nothing in it for Microsoft to spend billions to help Sony and not much profit its not minecraft money. Sony is not going to allow crossplay-buy dlc so what does Microsoft get out of this 4 billion and Sony gets the most benefit. They get marvel and DC.

No, it would be like if netflix sold stranger things on amazon, or HBO sold game of thrones on amazon.... which they do. Like I said, Microsoft would obtain exclusive streaming rights. So if you are a playstation gamer maybe instead of paying $60 for the new batman game, you would rather pay $15 and be able to play hundreds of other games through an app on your smart tv. Thats how they plan get you into their ecosystem.

Its the same principle as netflix. Netflix didn't even have exclusive content for the longest time. But people still signed up in droves because for the cost of one blu ray you could watch a whole bunch of movies and tv shows.
 

Silent Viper

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Join the Green Side! DC/Batman as MS exclusives would be glorious.


Ok kids. Let me explain some stuff to you all.

Thing is Batman license will go back DC after Sale. New buyer will have to re-negotiate license with DC and to convince DC to not to release on PS will require MS to come up with something good.


Main thing MS will get from this deal studio talent that is Rocksteady, Netherlearms studio talent and Monolith as well.

MK IP owned by WB and Netherlearms, so that MK IP will get transferred to MS if they buy them.

MS hungry for quality studios and WB got some AAA HQ talent. I say go for it. 2-4billion is nothing for MS.

Batman, Lego, Harry Potter and LOTR licenses will go back to their respective license holders and MS will have to renegotiate deal for games again.

Games which already in development for PS5 will come for PS5, MS will not cancel them and im pretty sure they will release it to on as many platforms possible via Xcloud.

Native releases could be exclusive to Xbox and PC ecosystem via Game pass.
 

Exede

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You had me confused for a second with Monolith. I was like Monolith aren't they owned by Nintendo then something clickt. Monolith Productions = WB and Monolith Soft. is Nintendo.
 
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You had me confused for a second with Monolith. I was like Monolith aren't they owned by Nintendo then something clickt. Monolith Productions = WB and Monolith Soft. is Nintendo.

Shadow of Mordor and Shadow of War developer. Must play!
 

quest

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No, it would be like if netflix sold stranger things on amazon, or HBO sold game of thrones on amazon.... which they do. Like I said, Microsoft would obtain exclusive streaming rights. So if you are a playstation gamer maybe instead of paying $60 for the new batman game, you would rather pay $15 and be able to play hundreds of other games through an app on your smart tv. Thats how they plan get you into their ecosystem.

Its the same principle as netflix. Netflix didn't even have exclusive content for the longest time. But people still signed up in droves because for the cost of one blu ray you could watch a whole bunch of movies and tv shows.
They don't sell them day 1 they do it up to a year later. Bring a game out 1 year after release well it hardly worth it no one wants it anymore. Its day 1 making Sony economy better or not at all making the Microsoft ecosystem better. Its an all or nothing as i see it in gaming. I must of missed where Sony released spiderman on any other platforms. Its funny that Microsoft should do multiplatform but Sony be exclusive so they get all games lol.
 
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Mattyp

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I was alluding Microsoft could literally buy Sony as they're valued at around $88 Billion and Microsoft has $137 Billion in Cash the most of any company in the world.

This really is pocket change for Microsoft, it will all come down how serious they are about their vision of taking over the living room, which is why Microsoft got in the console business in the first place.

This notion that Xbox would want to keep these games multi-platform is hilarious and its borderline delusional, as that would defeat the whole purpose of the acquisition when they could let one of the 3rd party's buy it and not have to front the $4 Billion and still get the games.

Think he was talking about Bryan aluding to Sony having 30 billion cash on hand which would be absolute bonkers considering Sony as a whole is only worth 80 billion.

8.9 or nearly 10 percent sounds about right.
 

theclaw135

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Didn't Warner Games buy Midway back in the day? I say MS should buy it and bring back San Francisco Rush!

The funny part is Warner previously sold off their game division in the 90s. Atari Games (formerly part of Atari) started up Tengen to return to console publishing. Later on Tengen morphed into the short lived Time Warner Interactive.
 

Castef

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Really if you think about it, if MS does make this acquisition and make the games exclusive, everybody wins since they all have gaming PCs to play the Xbox exclusives anyway.

Yep, as far as I undestand from the typical "I could play it on PC!" answer, every time you buy a PlayStation or a Switch they also give you a good gaming PC for free.