AT&T has been shifting its focus away from legacy assets like DirecTV. As the company prepares to launch HBO Max and continues to market AT&T TV, that shift away from DirecTV is becoming even more apparent. Now, sources are saying that AT&T is under pressure to sell soon.
FOX Business’ Charlie Gasparino reports that bankers are sharing updates that “AT&T is coming under tremendous shareholder pressure to cut costs” and sell off debt. After acquiring more debt from the acquisition of TimeWarner and with plans to invest in 5G, shareholders are reportedly telling AT&T to remove some of that debt as soon as possible.
Back in October 2019, the private equity firm Apollo Global Management was reportedly working with an outside banker to present a deal to AT&T that would involve combining DISH and DirecTV, forming a new company. At the time, AT&T was adamant that it wasn’t interested in selling the company, but a source told Fox Business that “what no one has picked up on is just because AT&T has said it doesn’t want to sell DIRECTV, doesn’t mean they won’t spin it off.”
Now, sources are saying that the Apollo offer could be exactly the type of deal that AT&T will “have to do now” in order to offload DirecTV and a portion of the debt the company is carrying.
AT&T, along with DISH and Apollo, had not yet commented when Gasparino reported the story for FOX Business.
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