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Rumor: Warner Bros. looking into selling off NetherRealm Studios and Lego game developers

They may fall outside of the scope of the Discovery merger

Posted by Dakota 'DarkHorse' Hills • July 10, 2021 at 9:10 a.m. PDT • Comments: 21

The future of NetherRealm Studios remains a bit of a question mark following the recent merger announcement between Warner Media and Discovery though they may soon end up at a new home entirely.

A reported document connected to said acquisition alleges AT&T and Warner Bros. are interested in selling NetherRealm Studios and Lego game developer TT Games outside of the multi-billion-dollar deal.

Jez Cordon, a Senior Editor for Windows Central, said he had acquired the document on the latest Xbox Two podcast when talking about potential studio buyouts.

"This document I've got seems to suggest that among the studios [Warner Bros. / AT&T is] potentially looking to spin of are NeatherRealm and [Traveler's Tales]," said Corden.

Interestingly, he continues that other WB-owned developers like Rocksteady Studios, Avalanche Software and Monolith Productions will be included in the Discovery merger.

The only reason stated in the alleged document came down to NetherRealm and TT Games not being "in the scope" of the studios staying with Warner Bros through the transition.

Cordon speculates the move may stem from the recent Mortal Kombat film not living up to WB's box office expectations, so they're looking to focus more on multimedia slam dunks like Batman and Lord of the Rings.

If the rumor does end up ringing true, then the makers of Mortal Kombat and Injustice may soon find themselves under new ownership.

Both Microsoft and Sony have been going in with large studio acquisitions as of late, so a successful AAA fighting game team could be a sweet pick up for either PlayStation or Xbox first party though Corden says he hasn't heard any talk of either pursuing a deal.

This all comes just a week after NeatherRealm themselves revealed that Mortal Kombat 11 would be receiving no further DLC support and that the team had moved on to their next project.

Corden's information does seemingly line up a bit with what early reports on the Warner Media and Discovery merger reports suggested with only some of WB's gaming arm joining the new company while the rest will remain with AT&T.

It's not the first time we've heard of the tech giant looking to offload some of its video game division as well considering just last year they were reportedly shopping around offers worth around $4 billion before pulling them back off of the market — perhaps to help seal the deal with the eventual Discovery merger.

The new company at the head of this $43 billion agreement will be called Warner Bros. Discovery, which includes HBO, DC Comics and CNN along with everything Discovery owns though no official mention has been made as to the fate of the gaming divisions.

Warner Bros. Discovery is scheduled to close the merger by mid-2022, so there is likely a lot of paperwork that needs to be signed before anyone moves anywhere at this point.

Since we can't see and verify these documents for ourselves, this talk still remains in the realm of rumors, so take it all with a healthy grain of salt.

NetherRealm's next project remains a secret though it is rumored to be a fighting game for Marvel Comics.

You can find the discussion surrounding the NRS and TT Games spin off below around the 45-minute mark.

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