graphic
News > Companies
AT&T to sell TV systems?
December 6, 2000: 12:39 a.m. ET

Puts $3B worth of cable TV systems in Montana and Iowa on selling block, report says
graphic
graphic graphic
graphic
NEW YORK (CNNfn) - AT&T Corp.'s Broadband unit is trying to unload some of its newly acquired cable-TV systems that could be worth at least $3 billion, according to a published report.

The Wall Street Journal's Web site reported Wednesday morning that the company, under pressure to conserve cash and boost its share price, has placed about 1.2 million cable-TV subscribers in Montana and Iowa on the auction block.

A couple of big cable-TV operators have taken a look, but so far no serious buyers have emerged, the story said. AT&T (T: Research, Estimates) declined comment.

  graphic WHY SELL SOME CABLE TV SYSTEMS?  
    Many of the systems for sale are located in rural areas that aren't strategically aligned with the rest of AT&T's expansive cable-TV empire.
   
An unidentified person close to the company said the latest sale attempt is aimed at better "clustering" AT&T's cable-TV properties, the Journal reported. Many of the systems for sale are located in rural areas that aren't strategically aligned with the rest of AT&T's expansive cable-TV empire, the story said.

The move comes at a time when AT&T is under increasing pressure to conserve cash and boost its flagging stock price. The company, facing intense scrutiny from credit-rating agencies because of its $62 billion debt load, is planning major, nonstrategic asset sales over the next several months, the story said.

The sales are aimed at shaving $25 billion in debt off the books. They come on the heels of a plan to break the company into three separately traded companies, consisting of cable, wireless and consumer long distance combined with business services, the story said.

Two other significant cable divestitures could be the sale of AT&T's 25 percent stake in Time Warner Entertainment and its 30 percent stake in Cablevision Systems Corp., the Journal reported. Time Warner Inc. (TWX: Research, Estimates) is the parent firm of CNNfn.com.  graphic

  RELATED STORIES

AT&T warns on 4Q profit





graphic


Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.