America’s biggest telco, AT&T, is considering selling off a 100 per cent stake in its Warner Brothers gaming unit, to raise cash to fuel its 5G deployment and help it pay down debt.
AT&T has debts of almost $200 billion and is reportedly looking at options to sell off what it regards as non-core assets in order to reduce its debt pile.
According to a report by US news outlet, CNBC, a number of gaming companies have expressed an interest in acquiring AT&T’s gaming division, which owns a number of highly successful gaming franchises, including Mortal Kombat and the Harry Potter series.
Last year, activist investor Elliott Management acquired a $3.2 billion stake in AT&T and since then has been pushing hard for the company to divest many of its peripheral assets and focus on boosting the company’s share price.
AT&T is in the process of rolling out its 5G networks in the US and is in stiff competition with its competitors Verizon and the newly merged T-Mobile for market share of the US’ fledgling 5G market.