AT&T Inc (NYSE:T) owns wireless and wireline networks in the US Virgin Islands and Puerto Rico. Things will no longer be the same after the business guru revealed plans to sell these assets to Liberty Latin America (NASDAQ:LILA). The move will see the company repay some of the debts it has through making a few acquisitions from other companies.
Reviewing the deal
The spokesperson of AT&T told reporters that there were plans underway to review the deal. The two bodies to review the deal are the Department of Justice and the Federal Communications Commission.
AT&T CFO John Stephens is also the other official making his statement regarding the transaction. According to him, the company had taken quite some time to undertake a review of its balance sheet and assets. Its goal was to identify opportunities for monetization, and Stephens believes they are on track to achieving remarkable performance.
The turn of events
AT&T has already set its 2019 target, in which case it seeks to reduce its debt by $20 billion. So far, it has managed to bring down its debt from $166 billion to $158 billion. That was between December the previous year to June this year.
Investors in the company have been piling pressure on it to disclose more details regarding the recent developments. AT&T has told them to expect share buybacks before the year comes to a close. In the meantime, the business guru is working towards improving its debt-to-earnings ratio.
In the recent past, AT&T has undertaken business transactions with Hulu and WarnerMedia’s Manhattan offices. The first deal involved about $1.43 billion, while the second was at $2.2 billion, with the companies transacting over steaming services.
Liberty is pleased about the opportunity to trade with AT&T. The company exudes confidence that with AT&T’s network in the US Virgin Islands and Puerto Rico, it will take over market dominance. The company’s spokesperson says it has always been their dream to take the leadership position in the communications industry on the islands. In this deal, Liberty looks forward to winning over a fiber backhaul and consumer mobile network business.
Cable tycoon John Malone congratulates Liberty for emerging out to be the largest broadband provider on the island. He is also pleased that Liberty will gain 1.1 million wireless subscribers in line with the deal.