NEW YORK (CNNfn) - AT&T is planning to shed Liberty Media Group, one of the options the company promised regulators to gain approval of its acquisition of MediOne Group Inc., according to a published report.|
Liberty Media Chairman John C. Malone told the Financial Times AT&T is getting ready to spin off his company, and he also expected AT&T to sell its 25.5 percent stake in CNNfn.com parent company Time Warner's (TWX: Research, Estimates) Time Warner Entertainment.
On Wednesday, AT&T Chairman Michael Armstrong confirmed his company would be selling assets to reduce its some $62 billion in debt.
Standard & Poor's credit-rating service lowered its rating Monday on AT&T (T: Research, Estimates) to A from AA-, keeping it on watch for a possible downgrade, while Moody's Investors Service also has the telecom company on watch for a downgrade.
One analyst said the company has to consider these measures because of falling revenue in its consumer long-distance business and a reluctance to saddle its new entities with too much debt after the company splits into four separately traded companies.