Time Warner Interactive was formed in 1993, when Time Warner regained a controlling interest in Atari Games from Namco, who had gained controlling interest in Atari Games from Warner in 1985 (Atari Games was the arcade division of Atari, Warner Bros. owned both the home and arcade division of Atari from 1974 until 1984, when they sold the home division to Tramel Technology). It was intended to be the video game development and publishing branch of Time Warner for the home market, while Atari Games made games for the arcade market.
Time Warner also bought UK publisher Renegade Software in 1995 and published games under the Warner Interactive label.
About the same time, Warner Bros. Interactive Entertainment was first used as a label for game licences of Warner Bros. material.
Time Warner Interactive published Flash Traffic: City of Angels and distributed Return to Ringworld but was short-lived and sold to WMS Industries in 1996 already.