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Games Overview Games Overview April 2013 Warner Bros. Interactive Entertainment Overview Business Overview Videogame Development • Warner Bros. Interactive Entertainment (“WBIE”) is a developer, • WBIE currently operates across videogame development, publisher, licensor and distributor of videogames publishing, licensing and distribution • Offers videogames across console, handheld platforms, social • Grew operations from licensing to publishing through organic networks and mobile growth and notable strategic acquisitions: • WB Games is the production unit of WBIE and was • 1995: Licensed properties for videogame development established in 2007 under the Warner Bros. name • WBIE's videogames are based on newly created IP, IP owned by • 2004: Acquired Monolith Productions (developer) Warner Bros. (“WB”), DC Comics (wholly owned by WB) and third • 2007: Acquired TT Games (developer/publisher) party licensors • 2010: Acquired Turbine (developer/publisher) • FY2012 videogame revenue was $800mm • 2012 videogame releases: $548mm Content Platforms • Prior videogame releases: $203mm Mobile / Online / • Third party distribution: $49mm Console Download Apps Social) MMOGs • WBIE was established in Jan-2004 and is a division of Warner Bros. Home Entertainment Group (“WBHE”) • WBHE operates under Time Warner’s (NYSE: TWX) Film Paid / Paid / Paid Paid / Free Freemium and TV Entertainment reporting segment (FY12 Revenue: Freemium Freemium $12bn), which consists of feature film, TV, home video and videogame production and distribution Source: Company filings, company website, and public media sources 2 Company Timeline Warner Bros. Interactive Entertainment Notable Events Selected Title Releases • 1995 Under the WB name, licensed out its 1st game property: Batman Forever • 1995 Batman Forever (Licensed) • Continued to license games based on WB properties (i.e. Cartoon Network, DC Comics, Hanna- 1995 Barbera, Looney Tunes) to publishers • 2003 Co-published its first videogame: Looney Tunes: Back in Action (co-publisher: EA Games) • 2003 Looney Tunes: Back in Action (co-produced) • 2004 Formed WBIE in January to license and produce games based on WB’s, DC Comics’ properties, • 2004 None 2000 and its own digital properties • Oct-2004: Acquired Monolith Productions, a game developer specializing in PC, console, and online • 2005 WBIE and Monolith developed their 1st game in conjunction: The Matrix Online (SEGA co- • 2005 The Matrix Online (co-developed / co- 2002 published) produced) • 2006 Released its 1st self-published title with no co-publishers (distributed by Eidos) • 2006 Justice League Heros (sole-produced) • Bought a 10.3% stake in SCi Entertainment, owner of Eidos Interactive 2004 • 2007 Began 5-year plan to expand in the videogame industry and opened WB Games in Seattle • 2007 Looney Tunes ACME Arsenal, Duck Amuck, • Expanded business to include publishing and distribution (utilizing Warner Home Video Alvin and The Chipmunks, Dirt infrastructure) • Dec-2007: Acquired TT Games, a game developer and publisher, including, the Lego Star Wars and 2006 BIONICLE Heroes games ($133mm) • Distributed 23 game titles in North America • 2008 Entering into additional videogame distribution agreements • 2008 LEGO Batman, Speed Racer, Guinness World 2008 • Apr-2008: Increased stake of Eidos Games to 35%, gaining distribution rights to US, Canada, Mexico Records, LEGO Indiana Jones (co- published) • Published 3 of its own videogames • Warner Bros. Digital Distribution (“WBDD”) expanded into distribution of games online and offered videogames for sale on the iTunes Apps store Source: Company filings, company website, and public media sources 3 Company Timeline (cont’d) Warner Bros. Interactive Entertainment Notable Events Selected Title Releases • Jul-2009: Purchased most of the assets of American publisher Midway Games, which • Lego Indiana Jones 2: The Adventure owned Mortal Kombat ($49mm) Continues, F.E.A.R. 2: Project Origin, LEGO Rock • Nov-2009: Announced 1st official Harry Potter game to be available on the App store Band, Scribblenauts, Batman: Arkham Asylum 2009 (developed in association with Mikoishi; $4.99) (co-publish) • Feb-2010: Acquired a majority stake in Rocksteady Studios, which worked with WBIE to • The Bachelor & The Bachelorette, Legend of co-develop Batman: Arkham Asylum the Guardians: The Owls, LEGO Harry Potter: • Apr-2010: Acquired Turbine, developer/publisher of online games, including The Lord of Years 1 - 4, Scooby-Doo and the Spooky 2010 the Rings Online (MMORPG: free-to-play) and Dungeons & Dragons Online (MMORPG) Swamp, The Lord of the Rings: Aragorn's • Oct-2010: Greg Ballard named Sr. VP, Digital Games, WBDD and WBIE Quest, Sesame Street: Cookies Counting • Jan-2011: Announces 1st expansion into social games with: Gossip Girl: Social Climbing, • Gossip Girl: Social Climbing (free Facebook playable free on Facebook (developed by Arkadium) game), The Big Bang Theory: Mystric Warlords • Sep-2011: Launch of The Big Bang Theory: Mystic Warlords of Ka’a, a free, playable free on of Ka’a (free Facebook game) 2011 Facebook • Batman: Arkham City, Happy Feet 2, LEGO • Release 13 videogames Harry Potter: Years 5-7, Mortal Kombat, Sesame Street: Once Upon a Monster • Mar-2013: Announced WB Games San Francisco a new, digital videogame studio • Batman: Arkham City Armored, Game Party specializing in developing and publishing free-to-play, mobile, social and browser-based Champions, Guardians of Middle-Earth, Harry game Potter for Kinect, LEGO Batman 2: DC Super 2012 • Released 10 videogames Heroes, LEGO the Lord of the Rings, Scrubbleauts Unlimited Source: Company filings, company website, and public media sources 4 .
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