Telecommunications company AT&T is working with advisers on a possible public offering of its Latin American pay-television assets, according to Bloomberg, citing people familiar with the matter.
This move would provide funds to reduce debt from its planned takeover of Time Warner, valued at USD 85.4 billion, that still has not been approved in the United States. According to the people, the U.S. company hasn’t made a final decision about what to do with the businesses. In addition, AT&T hasn’t held talks with potential buyers to sell the operations, the people said.
The public market could value the business at $8 billion to $10 billion, depending on which assets are included, one person said. In Latin America, AT&T owns DirecTV Panamericana, which operates in countries like Argentina, Venezuela, Chile, Colombia and Peru, among others, and 93% of SKY Brazil. In Mexico, it has 41% of SKY Mexico, and the remaining 59% belongs to Televisa.
Last September, Reuters reported that AT&T was evaluating the sale of its operations in Latin America, except in Mexico.