AT&T’s CEO Defends Buying DIRECTV & Time Warner Following Shareholder Concerns




, ,

Recently AT&T has been under fire for its TV efforts as they warn that a million TV customers could be lost int he 3rd quarter of 2019. Most noticeably was the investor group Elliott Management who is pushing for DIRECTV to be sold and new leadership be brought in at AT&T.

Now AT&T’s CEO says that buying DIRECTV and Time Warner was the right move. “If you had asked me that question five years ago, I’d be hard-pressed to say it makes sense, in the old world. In the new world, it makes all the sense in the world.” Said AT&T’s CEO Randall Stephenson at the Goldman Sachs’ Communacopia conference this morning.

AT&T is betting big right now that it can turn its TV numbers around in 2020 with the launch of AT&T TV and HBO Max. According to a letter sent to shareholders last week AT&T says that “In 2020, AT&T expects premium TV subscriber trends to improve due to far fewer customers on promotional pricing and the nationwide launch of AT&T TV, which delivers a premium streaming experience. Other factors that may help improve Entertainment Group EBITDA beyond 2019 include: broadband growth due to increased fiber penetration and availability of higher speeds; a higher-quality video and broadband customer base with lower churn and higher ARPU; continued cost management; advertising growth from Xandr and less pressure from declining legacy products.”

For now, we will have to wait and see if this play for streaming with AT&T TV and HBO Max along with advertising growth will pay off. Yet as AT&T’s plan is now just getting underway, it seems that some are becoming impatient to see growth return to AT&T’s TV business.

Please follow us on Facebook and Twitter for more news, tips, and reviews. Need cord cutting tech support? Join our Cord Cutting Tech Support Facebook Group for help.

Did you know we have a YouTube Channel? Every week we have a live Cord Cutting Q&A, and weekly Cord Cutting recap shows exclusively on our YouTube Channel!

Disclaimer: To address the growing use of ad blockers we now use affiliate links to sites like, streaming services, and others. Affiliate links help sites like Cord Cutters News, stay open. Affiliate links cost you nothing but help me support my family. We do not allow paid reviews on this site. As an Amazon Associate I earn from qualifying purchases.

Subscribe to Our Newsletter

* indicates required

Please select all the ways you would like to hear from :

You can unsubscribe at any time by clicking the link in the footer of our emails. For information about our privacy practices, please visit our website.

We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp’s privacy practices here.