According to industry grapevines, AT&T Inc. T is reportedly contemplating the divestment of about half of its ownership stake in the DirecTV satellite-television business. The strategic move is likely to help the carrier offload a struggling business that has been a drag on operations and focus more on its core businesses. However, no official statement has yet been made by any of the firms involved in the negotiation process.
AT&T acquired DirecTV in 2015 for a total consideration of $67.1 billion (including assumed debt) to extend its footprint beyond the realms of the wireless business into the pay-television industry. However, the business did not live up to its expectations and began to lose subscribers with the emergence of online streaming services of avant-garde media firms like Netflix, Inc. NFLX, The Walt Disney Company DIS, Hulu and Amazon.com Inc. AMZN.
To add to the woes, AT&T amassed a huge debt burden