AT&T explored a sale of the European unit of TV network HBO, which it acquired when it took over Time Warner [1], in a bid to reduce its $170 billion debt, Financial Times (FT) reported.
The operator has mulled the move since November 2018 and while no formal talks have been held with potential buyers, Sky was described an obvious candidate given HBO content is licensed exclusively through the broadcaster in the UK, Germany and Italy.
Sources told FT the operator did not want news of a potential sale to become public as executives fear it could lead to further defections following the departure of Richard Plepler, chief of HBO for almost three decades, who stepped down in February reportedly due to a culture clash between AT&T and its new media staff.
Another source said AT&T’s US leadership is “so focused on the American business, they don’t see that HBO has a substantial business in Europe.”
The unit has about 200 employees, and its streaming service has some 10 million subscribers in countries including Spain, Sweden, Denmark and Poland.
FT said one executive denied any plans to sell, with the publication noting “the contrasting positions highlight the unrest and turmoil that has followed the combination of two companies with very different corporate cultures…AT&T is a much larger organisation that focuses on efficiencies, while WarnerMedia aspires to creative success.”
AT&T raised $5 billion [2] through the sale of unsecured bonds in February, as it stepped up efforts to tackle a huge debt load amassed during a period of acquisitions.
The operator is preparing to launch a streaming service [3] later this year to take on OTT giants including Netflix, employing its WarnerMedia assets and featuring HBO content.
[1] https://www.mobileworldlive.com/featured-content/home-banner/att-closes-blockbuster-time-warner-deal/[2] https://www.mobileworldlive.com/featured-content/top-three/att-makes-move-to-cut-171b-debt/
[3] https://www.mobileworldlive.com/featured-content/top-three/att-teases-new-streaming-service-for-2019/
