At&T Stock Price, News & Analysis

AT&T and TPG Capital have successfully completed their transaction to create a new company called DIRECTV, which will manage AT&T's video services, including DIRECTV, AT&T TV, and U-verse. AT&T has received $7.1 billion in cash and a 70% stake in the new company, while TPG contributed $1.8 billion for a 30% stake. This move allows AT&T to reduce debt, aiming for a net debt-to-EBITDA ratio below 2.5x by year-end 2023. This transaction excludes HBO Max and certain other assets, focusing solely on U.S. video operations.

DISH Network has partnered with WarnerMedia to provide HBO Max, HBO, and Cinemax to DISH TV customers across the nation. To celebrate, DISH is offering a 10-day free preview starting August 6. Customers can subscribe to HBO Max for $12 per month, a discount from the regular price of $14.99, valid until October 27. The subscription includes access to over 13,000 hours of content, including Warner Bros. movies and live channels. Cinemax is available for $10 per month. This agreement enhances DISH's content offerings, positioning the company advantageously in the competitive streaming market.

AT&T reported second-quarter results revealing consistent customer growth across wireless, fiber, and HBO Max, alongside strong cash flows. Highlights include 789,000 postpaid phone net additions and a 10.4% revenue increase to $44.0 billion. Operating income reached $3.3 billion. The company raised its HBO Max year-end forecast to 70-73 million subscribers. Despite increased operating expenses of $40.8 billion, net income improved to $1.5 billion ($0.21 per share). Full-year guidance for revenue and cash flow was updated, indicating positive momentum in the business.

Grupo Werthein has agreed to acquire AT&T's Vrio Corp. business unit, a digital entertainment provider with 10.3 million subscribers in Latin America and the Caribbean. The transaction is subject to customary closing conditions and is expected to close in early 2022. Vrio offers services under the DIRECTV and SKY brands and includes a range of premium content. AT&T reported a $4.6 billion impairment related to this asset as of June 30, 2021. Both companies are focused on ensuring a smooth transition for subscribers and employees.

AT&T's FirstNet is enhancing public safety capabilities with the introduction of four new solutions aimed at improving interoperability and situational awareness for first responders. Collaborating with industry leaders like Motorola Solutions, KSI Data Sciences, and NetMotion, FirstNet's new offerings include a Mission-Critical Push-to-Talk platform, the MissionKeeper streaming software, a VPN solution to secure mobile traffic, and a messaging app. These innovations aim to provide secure, seamless communication and improve emergency response, marking a significant step in modernizing the public safety communications landscape.

On July 20, 2021, AT&T announced that it ranked first in 5G network reliability and availability, according to Global Wireless Solutions (GWS). The evaluation was based on 8 million controlled tests across all 50 states, highlighting AT&T's 5G connection success rate of 99.5%. Furthermore, AT&T's 5G services are available to over 250 million people nationwide, with connectivity in top markets exceeding 20% more than competitors. AT&T emphasized its commitment to providing a fast, reliable, and secure 5G experience for customers.

AT&T and JBG SMITH have signed a letter of intent to establish National Landing as the first 5G Smart City at scale in the U.S. Initial infrastructure deployments are planned for H1 2022. The collaboration will utilize a combination of mmWave and sub6 5G spectrum to create an integrated urban technology ecosystem. JBG SMITH's portfolio in National Landing includes 6.8 million square feet of office space and significant residential units, alongside $1 billion in development projects. This initiative aims to enhance connectivity and innovation in sectors like AI, IoT, and cloud computing.

DIRECTV, a subsidiary of AT&T, announced a proposed offering of $3.1 billion in Senior Secured Notes due 2027. The funds will be used to pay down intracompany debt owed to AT&T and cover financing expenses related to the anticipated Separation Transaction with TPG VIII Merlin Investment Holdings. If the transaction is not finalized before the Notes' issue date, proceeds will be held in escrow. The offering is intended for qualified institutional buyers only, and the Notes will not be registered under the Securities Act.