It’s unclear whether AT&T will maintain operational control of DirecTV.

By Jon Brodkin; Ars Technica ~ Jan 25, 2021

AT&T is reportedly closing in on a deal to sell a stake in DirecTV to TPG, a private-equity firm.

Unfortunately for customers hoping that AT&T will relinquish control of DirecTV, a Reuters report on Friday said the pending deal would give TPG a “minority stake” in AT&T’s satellite-TV subsidiary. On the other hand, a private-equity firm looking to wring value out of a declining business wouldn’t necessarily be better for DirecTV customers than AT&T is.

It’s also possible that AT&T could cede operational control of DirecTV even if it remains the majority owner. CNBC in November reported on one proposed deal in which “AT&T would retain majority economic ownership of the [DirecTV and U-verse TV] businesses, and would maintain ownership of U-verse infrastructure, including plants and fiber,” while the buyer of a DirecTV stake “would control the pay-TV distribution operations and consolidate the business on its books.”

By Mike Dano; Light Reading ~ Jan 22, 2021

AT&T and Verizon are looking to extricate themselves from the messy business of building a bridge across the digital divide. Instead of collecting money themselves for the government’s aging Lifeline program – designed to subsidize telecom services for poor Americas – they want Congress to do it instead.

The move is well timed. A pandemic forcing almost everyone to work and school online has helped to elevate Internet connections from nice-to-have to must-have. And the incoming Biden administration has pledged support for universal broadband.

By Emily Bary MarketWatch ~ Jan 22, 2021

Company has shaken up its film strategy with HBO Max and participated in a huge 5G spectrum auction

AT&T Inc. is at the beginning of a pivotal year as it tries to navigate the pandemic and beyond.

With its business under pressure amid the COVID-19 pandemic, the company has made big moves that could alter its future. AT&T’s T, +0.35% Warner Bros. film studio was arguably the most aggressive in moving films to its streaming platform, and the company is expected to have spent heavily at a recent wireless spectrum auction that was crucial to defining the 5G landscape.

Though AT&T’s wireless business has held up during the pandemic, its various media segments have faced more challenges. Theater closures have hurt the film business, while a more limited slate of live television programming has increased the subscriber erosion at DirecTV.

By Matt Kapko; SDxCentral ~ Jan 20, 2021

AT&T believes “5G will reshape the fabric of society,” but “because of the hype around it, it’s clear that a lot of people expected one big shift overnight,” Mo Katibeh, chief product and platform officer at AT&T Business, tells SDxCentral.

Patience is a rare virtue in technology, but that’s exactly what AT&T and other 5G proprietors are calling for. “In reality, these breakthroughs build over months and years,” Katibeh wrote in response to questions.

By Jeff Baumgartner; Light Reading ~ Jan 12, 2021

AT&T has quietly halted sales of AT&T TV Now, a no-contract, slimmed-down pay-TV streaming service that debuted as DirecTV Now back in late 2017.

As first spotted by Phillip Swann of The TV Answerman site, AT&T is alerting visitors online that AT&T TV Now packages are no longer available to new customers. The web page also notes that AT&T TV Now has effectively merged with AT&T TV, a newer, OTT-delivered pay-TV service that features fatter, more traditional bundles of TV channels. AT&T TV runs on an operator-supplied Android TV box and supports apps for several retail streaming platforms, including Roku, Amazon Fire TV, Apple TV and select Samsung smart TVs.

Business Wire ~ Dec 11, 2020

DALLAS–(BUSINESS WIRE)–The board of directors of AT&T Inc. (NYSE: T) today declared a quarterly dividend of $0.52 a share on the company’s common shares. The dividend is payable on Feb 1, 2021, to stockholders of record at the close of business on Jan. 11, 2021. Additionally, the board of directors declared quarterly dividends on the company’s 5.000% Perpetual Preferred Stock, Series A and the company’s 4.750% Perpetual Preferred Stock, Series C. The Series A dividend is $312.50 per preferred share, or $0.3125 per depositary share. The Series C dividend is $296.875 per preferred share, or $0.296875 per depositary share. The dividends are payable on Feb. 1, 2021, to stockholders of record at the close of business on Jan. 11, 2021.

The company expects to have the financial flexibility in 2021 to continue to invest in growth areas, sustain the dividend at current levels and focus on debt reduction.

AT&T’s 2021 financial outlook and capital allocation guidance will be provided when the company announces 4Q results on January 27, 2021.

From Pádraig Belton; Light Reading ~ Dec 10, 2020

AT&T has received at least three offers – some of which exceeded $15 billion – for its troubled satellite division DirecTV, which it acquired for nearly $50 billion in 2015.

Among the bidders are the private equity firm Apollo Global Management, which was previously seen as a frontrunner but has valued the division at slightly less than $15 billion, and Churchill Capital Corporation IV, which is a specialist acquisition company set up by former Citigroup banker Michael Klein.

The deal could be announced early in 2022. The offers include taking on DirecTV’s debt.

The division was hit by the “cord-cutting” trend, with the most recent tally of customers 7 million lower than in 2017. In the third quarter, revenues for AT&T’s pay-TV business fell by 10% to $10.1 billion.

The poor performance of the acquisition has attracted comment both from activist investors and from the public. AT&T paid $49 billion, and also took on $17 billion of DirecTV’s debt.

Large activist fund Elliott Management, which bought a $3.2 billion stake in AT&T in September and subsequently exited, said AT&T had bought the company at the “absolute peak of the linear TV market.”

“How to lose $52 billion in six years: the AT&T DirecTV story,” said a Twitter user.

By Mike Dano; Light Reading ~ Dec 03, 2020

There are growing indications that Japanese wireless network operators are in the early stages of a potentially massive pricing war, one that could significantly reduce costs for customers while at the same time cutting into operators’ revenues.

And there’s a good chance top executives at AT&T and Verizon are watching the situation with growing dismay.

How might market minutia 6,000 miles away affect the fortunes of two of the biggest wireless network operators in the US? Both developed markets are pivoting to 5G and both potentially will feature the exact same structure: Three incumbents challenged by an upstart using fancy new networking technology to offer cheaper services.

Of course, there are plenty of puzzle pieces that will need to fall into place before US operators might face the kinds of situations that Japanese operators are now dealing with – and there’s no assurance those puzzle pieces will actually materialize. Indeed, there’s no way of knowing whether these initial pricing skirmishes in Japan will even blossom into an all-out war.

Nonetheless, the situation is certainly worth watching.

The telecom name has been around for ages while other companies have faded away. The dividend isn’t too shabby, either.

By James Brumley; The Motley Fool ~ Nov 22, 2020

In some regards, baby boomers’ loyalty is surprising. AT&T (NYSE:T) shares are now only down 35% from their 2016 peak but are priced around half of their 1999 peak. Indeed, last month, the stock hit new 52-week lows, underscoring its persistently poor performance.

In other regards, though, it’s not terribly difficult to understand baby boomers’ continued willingness to hold on to their AT&T position. In spite of its problems (and there are plenty of them), AT&T’s dividend continues to march on. It’s grown at least a little every year for the past 36 years (qualifying it for Dividend Aristocrat status), and the payout as a portion of income is pretty generous, too.

There’s also something of an “X factor” buried in older investors’ affinity for the telecom giant. They likely grew up with the company, watching it mature into the powerhouse it is today.

Via “News Wire Feed”; Light Reading ~ Nov 19, 2020

NEW YORK – The National Advertising Division (NAD) of BBB National Programs determined that AT&T Services, Inc. provided claims made in two blog posts on AT&T’s website. The AT&T blog post claims include:

• The “best possible Wi-Fi experience”;

• The “best possible in-home connections”; and

• The “best possible home internet experience.”

The claims at issue were challenged by Comcast Cable Communications, LLC, provider of competing home internet services.