On Monday, AT&T released its third quarter
earnings and announced a settlement of sorts with activist investor, Elliott Management,
that commits, over the near term, to reducing debt and avoiding major acquisitions
among other things.
Probably the most concerning part of the financial
results was the continued hemorrhaging of TV subscribers. In the quarter, AT&T’s Entertainment
Group experienced declines of greater than a 5% (1.163 million) in premium TV
subscribers and 17% (.195 million) in AT&T Now subscribers. For “now” though, DirecTV is staying put as
part of the firm’s assets and strategy “to meet
growing demand for content and connectivity.” With Elliott and other
participants on the earnings call, AT&T’s CEO, Randall Stephenson, said
that “[DirectTV] will be an
important part of our strategy over the next three years. But no portion of our
business is exempt.”
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