According to reports, AT&T is looking for ways to sell some products and make more money from others to help pay off its debt.
Yesterday, AT&T closed on a deal to sell their data center colocation operations and assets to Brookfield Infrastructure. This move is likely an effort to help pay off some of their debt.
AT&T is also looking at selling their share of Hulu. When AT&T purchased Time Warner, it came with 10% stake in Hulu. It is reported that this 10% share may be worth as much as $930 million. While that is only a fraction of AT&T’s debt load, getting $900 million from Disney would help them pay off their debt.
This debt load may also be the reason AT&T has shut down several streaming services recently like FilmStruck. AT&T is likely trying to unload less profitable segments while focusing on more profitable ones.
In 2019, AT&T will likely make several moves to lower their debt. Some of these moves will include selling assets and finding new revenue sources. What this may look like is unknown for now but this is an issue that AT&T must address.
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