AT&T's Reluctance to Sell DIRECTV Is a Bright Red Flag
AT&T (NYSE: T) is reportedly facing pressure to sell DIRECTV, the satellite and pay-TV platform it bought in 2015, to reduce its debt, streamline its business, and raise more cash for its streaming investments. Back in August, the Wall Street Journal claimed AT&T was working with bankers to divest the shrinking business.
In December, the Wall Street Journal claimed AT&T had received bids of "more than $15 billion including debt," with top bids coming from the SPAC Churchill Capital IV (NYSE: CCIV.U) and the private equity firm TPG. The deal wouldn't include DIRECTV's struggling Latin American business, which is also struggling to find buyers.
Taking that lowball offer would represent a big loss for AT&T, which paid $49 billion ($66 billion including debt) for DIRECTV. The New York Post claims AT&T would still retain a majority stake in DIRECTV, and the top bidder would only pay $3.75 billion in cash and assume some of the company's debt for a 49% stake.
Source Fool.com
