AT&T Inc (NYSE: T) have unveiled their long term strategy that included adding two new board members and selling up to $10 billion worth of non core business next year.
Additionally, plans to pay of all their debt from the purchase of Time Warner following pressure from activist investor Elliott Management.
Elliot Management revealed a $3.2 billion stake in the company in September. Since then, Elliot have been pressing AT&T to cut costs, make management changes and scale back expansion plans.
The company added that they expect Randall Stephenson to remain chief executive during 2020.
In a letter to shareholders, Elliot said that AT&T would evaluate all potential CEO candidates whilst separating the Chairman and CEO positions.
“We commend AT&T for the positive steps announced today, which will create substantial and enduring shareholder value at one of America’s greatest companies,” Elliott said in a statement.
In an attempt to reduce its debt costs valued at $153.5 billion at the end of Q3, AT&T have sold off assets in Puerto Rico to Liberty Latin America (NASDAQ: LILA) for $1.95 billion.
Another sale was announced over the weekend. Investment group PPF owned by Petr Kellner agreed to buy broadcaster Central European Media Enterprises Ltd (NASDAQ: CETV) in a cash deal valued at about $2.1 billion. As AT&T was CME’s largest shareholder, this means that CME & AT&T will part ways when this deal is completed.
The company expects to generate $14 billion through asset sales and other plans by the end of 2019. So far this year, it reduced its net debt by $12.7 billion.
Total operating revenue fell to $44.59 billion from $45.47 billion. Analysts were expecting about $45 billion, according to IBES data from Refinitiv.
AT&T announced 100,000 new mobile subscribers, which was a positive note for the technology giant.
Currently, shares of AT&T are trading at $36.91 seeing a 0.11% rise. 28/10/19 13:45BST.
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