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:

  • T.B.Told: After Frontier dumped yet again 10 more channels Starz/Encore we decided our contract was null& void. We were promised a credit which we never saw...
  • Debz: Thank Goodness I am not on autopay. Spectrum has double charged me on my statement and they refuse to remove it, but they can't tell me why I have a...
  • Randy: i can understand how you feel. If your in Central Florida conact us if not find a good local alarm contractor to provide your security. Always best to...
  • Randy Rickard: It seems so wrong for a company to just pull the plug most alarm companies that decide to call it quits assigns the systems to another company so I am...
  • SGB: My bill reflects a Broadcast TV Surcarge of $13.50. Outrageous!...
  • Scarlet: #stephanieisastupidfatbitch...
  • Ryan: Why pay twice as much for something as you have to? I can afford to pay $200 a month for cable. But why would I when they let me pay less? Would you g...
  • Michael Gibbons: Please go out of business FRONTIER... i had got rid of them in JAN, T-MOBILE has a data cap at 22gig but anything then had to fight frontier with the ...
  • Angela Cimo: I have requested this 9 times I get dupes of everything and they kept sending mail slightly changing the format unbelievable how bad this company is f...
  • Jason Lindig: After multiple years of getting 200 mbit+ from Time Warner and eventually Spectrum, one day my internet speeds dropped to around 80-100 mbit. The tech...
  • Bob sandburg: Does frontier and their ridiculous commercials realize that a “speed freak” is a person that does crystal meth or speed frequently? Idiots in the adve...
  • Craig: They told me I would only lose the monitoring which I can work around. They assured me that the phone app would still work. Surprise, the login is dea...

Your Account: