Home » AT&T »Competition »Consumer News »Liberty Cablevision (Puerto Rico) »Liberty/UPC »Public Policy & Gov't » Currently Reading:

AT&T Ditches Puerto Rico and Virgin Islands to Raise Money to Cut Debt, Buy Back Its Own Stock

AT&T will sell its operations in Puerto Rico and the U.S. Virgin Islands to John Malone’s Liberty Latin America, Ltd., setting up a virtual market monopoly for Liberty, which already owns cable operator Liberty Cablevision of Puerto Rico.

Liberty Latin America has agreed to pay $1.95 billion in cash to acquire 1.1 million AT&T cellular, landline, and internet customers in both U.S. territories.

AT&T intends to use the proceeds of the sale to reduce debt and allow the company to lay the foundation to buy back more of its own shares, pleasing investors. AT&T had originally sought up to $3 billion for the Caribbean networks, partly acquired from a 2009 acquisition of Centennial Communications, which cost AT&T less than $1 billion.

Analysts say the low selling price shows AT&T is feeling pressure from activist investor Elliott Management, which has been pushing AT&T to divest non-core assets. The selling price was also impacted by the distressed state of AT&T’s infrastructure and customer base, impacted by Hurricane Maria in 2017, which damaged both the Virgin Islands and Puerto Rico and displaced hundreds of thousands of residents.

Liberty already has a major presence in Puerto Rico through its cable system — Puerto Rico’s largest pay television and broadband provider. Cable tycoon John Malone will effectively control Puerto Rico’s largest wireless phone and cable company. Claro, Puerto Rico’s landline provider, will be its chief competitor.

The two companies said they expect the deal to close within six to nine months.

Leave a Reply

avatar

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  Subscribe  
Notify of

Search This Site:

Contributions:

Recent Comments:

  • R Ritz: I wish Spectrum had ELP here in Wyoming. The lowest they offer is 120/12 at $66 per month. I really don't need that much speed and would be happy with...
  • Constance Burdine: Tell them to send your address to corporate headquarters....
  • Andy: Yes, everything is always danger for health when they advertising preachers got some ads they want you to see with their click-bait fake articles....
  • Russell Maxwell: Ive been learning wifi and 5g especially is dangerous to health....
  • Russell Maxwell: I just order the $19.99 wifi spectrum internet In Sheridan Wyoming Oct.13th 2019. Hopefully its OK....
  • Thomas: Tax preparation service is very important. You can both use software and service to have your tax report done....
  • WHE: Just an FYI. A few days ago, I downgraded my Internet service from ultra to standard and they pro-rated my bill. Maybe I got lucky, but I suspect they...
  • Joe: You never bought into it, yet here you are posting comments via the Internet....
  • Jason Paiva: Yea, DOESNT WORK! I've spent years and dozens if attempts at plugging in my info, being told it could take 45-60days and continuing to get mailers. ...
  • pug: Spectrum just raised our rate from 65.99 to 69.99 here in southern Oregon for internet only. Price gouging extortionists!...
  • Nick: The coax shield might be grounded lower down, close to where it enters the house....
  • Tom: That is very bad business..cancelled my cable tv 2 days in of the billing cycle and told me I would have to pay for the services for the entire month....

Your Account: