In March, AT&T announced a $43 billion deal to spin off Warner Media and merge it with Discovery to create a "premier independent global entertainment company" to compete with networks like Netflix and Disney+. As part of the deal, the company announced the sale of a portion of game publisher Warner Bros. Interactive Entertainment, Inc.

More recently, however, WBIE confirmed that two of the best-known studios in its stable, NetherRealm and TT Games, are no longer on the block. Xbox Two Podcast has learned that both studios are no longer "in the scope" of Warner's future business In response to reports that they had seen documents indicating that they were "out of scope" and therefore one of the studios being considered as a potential buyer, a WBIE representative told TheGamer that this is simply not true.

"I can confirm that NetherRealm Studios and TT Games will continue to be part of Warner Bros. Games and will all be included in the Warner Media Discovery merger," the rep said.

In addition to NetherRealm and TT Games, WBIE includes Monolith, Avalanche, Rocksteady, Playdemic, and WB Games studios in San Diego, Boston, Montreal, San Francisco and New York, In all, there are approximately 12 studios.

Both NetherRealm Studios and TT Games have enjoyed considerable success in recent years: NetherRealm is best known as the developer of the fighting games "Mortal Kombat" and "Injustice," while TT has produced "Star Wars," Harry Potter," and "Batman," and TT is highly regarded for its LEGO games based on licenses such as "Star Wars," "Harry Potter," and "Batman. Meanwhile, NetherRealm announced earlier this month that it had finished development on "Mortal Kombat 11" and was working on its next project, "Injustice 3."