Rumours have been swirling of late about AT&T considering divesting itself of Warner Interactive in order to free up some capital. However a new open letter from WarnerMedia CEO Jason Kilar looks to have put the brakes on such a move.
The letter, sent to all employees and posted to the group’s press site (thanks Eurogamer). Discusses a major internal restructuring for the organisation following Kilar’s three months in his role as the new CEO.
It specifically notes in the new structure of roles for senior employees that:
“Warner Bros. Interactive remains part of the Studios and Networks group, along with our Global Brands and Franchises team including DC led by Pam Lifford, and our Kids, Young Adults and Classics business led by Tom Ascheim, all focused on engaging fans with our brands and franchises through games and other interactive experiences.”
Now such a statement doesn’t entirely rule out a further sale, but to specifically mention it remaining part of that team does suggest that a sale isn’t immediately on the cards. With Kilar shaking things up at WarnerMedia, including the departure of three senior executives and a restructure of teams, it would have been timely to announce the sale of a major division too.
That said, the division hasn’t been shifted or given new management, which would have been a far stronger indication that it was going nowhere. So we’ll shift this one to the backburner for now.
What more certain is that the organisation will be laying off staff, said Kilar:
“It also means that we will be reducing the size of our teams, our layers, and our overall workforce. These reductions are not in any way a reflection of the quality of the people impacted nor their work. It is simply a function of the above changes I believe are necessary for WarnerMedia and our collective ability to best serve customers. This is the part that is painful and very hard. It is difficult to find the appropriate words here to say other than that I am very sorry. These are talented, admired leaders and beloved colleagues.”
Whether that impact the Interactive division, or is centred more on the TV and Film production areas is yet to be seen.