What We Know About AT&T's Potential Interest In Selling Sports Networks

Telecom and media giant AT&T Inc. T is rumored to be looking at selling off its sports networks to help trim as much as $8 billion of debt, Bloomberg's Nabila Ahmed said on Tuesday's "Bloomberg Markets: The Close."

What Happened

AT&T is likely looking to sell assets to help pay off between $6 billion and $8 billion of debt by the end of the year, Ahmed said. The company has achieved $3.5 billion of that goal so far and is now looking at all of its assets with this key question in mind, she said:  “What can we do without?” 

The telecom is actively exploring a sale of four sports networks that cover around a dozen teams, Ahmed said. 

Some of the teams include recent back-to-back NHL champions Pittsburgh Penguins and the NBA's Houston Rockets. 

The package is "not as attractive" compared to the regional sports networks Walt Disney Co DIS recently divested to Sinclair Broadcast Group Inc SBGI, Ahmed said. 

Why It's Important

Sinclair could take a look at AT&T's sports assets, although its pending purchase of certain Disney sports assets has yet to be approved by regulatory bodies, according to Bloomberg. 

Three Democratic presidential candidates — Cory Booker, Bernie Sanders and Elizabeth Warren — urged the FCC and Justice Department in a letter to look at the deal, saying it could increase costs to consumers.

Nevertheless, AT&T has motivation to shed sports assets to "get rid of the high costs" associated with live sports, Recon Analytics analyst Roger Entner told Bloomberg.

What's Next

AT&T has not officially confirmed its interest in selling the sports networks and there is no guarantee a deal will be announced.

The stock was trading higher by 0.21% at $33.92 at the time of publication Wednesday. 

Related Links:

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Report: Sinclair To Buy Regional Sports Networks From Disney

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