AT&T Debt Challenges, 5G Opportunities
The layoffs and potential video game asset sale surface as AT&T strives to navigate four major challenges:- Navigate the coronavirus pandemic and resulting economic fallout.
- Unlock the value of acquired content services, such as HBO.
- Invest for the future, including 5G network build outs.
- Retire debt in order to improve the telecom giant's balance sheet.
"AT&T has been under pressure to reduce costs and sell assets to help pay down debt, expand 5G wireless networks, raise its shareholder dividend and expand its WarnerMedia entertainment offerings. Those include the streaming platform HBO Max, into which AT&T is plowing billions of dollars on content and marketing."
On the video game front, Activision Blizzard, Electronic Arts and Take-Two Interactive Software are taking a look at AT&T's gaming unit. That business could fetch up to $4 billion in a potential sale.
AT&T Staff Cut Details, Security Investments
On the AT&T staffing front, the following near-term moves are planned, according to business insider.- AT&T Mobility and Cricket Wireless retail closures will affect 1,300 jobs
- Additional layoffs will involve technical and clerical workers.
- Employees impacted by the layoffs will receive severance and healthcare coverage for up to six months.
