AT&T reportedly put its Rooster Teeth Productions video unit up for sale, part of a broader commitment to trim debt and shed non-core assets.
Bloomberg reported AT&T is seeking a buyer for the video production company, which is now part of the operator’s WarnerMedia division. Rooster Teeth Productions was a unit of Otter Media, which the US operator acquired in 2018 and folded into the broader media business formed earlier that year in an $85 billion purchase of Time Warner.
AT&T’s foray into the media industry faced scrutiny from activist investor Elliott Management, which urged the operator to trim its debt load. AT&T has been selling select assets, but remained committed to its media strategy, which now appears to be paying off.
On its Q1 earnings call, AT&T said debt now stands at 3.1-times EBITDA, which it characterised as “peak leverage.” It plans to use “strong free cash flows and proceeds from asset monetisation” to bring debt levels down during the remainder of the year.
By end-March, AT&T reported $160.7 billion in long-term debt and $19.5 billion short-term.Subscribe to our daily newsletter Back