AT & T’s 41.3% stake in Sky Mexico is not part of the deal, the company said Wednesday.
AT&T Inc said Wednesday it will sell Vrio Corp, its DirecTV business unit in Latin America, to the Argentina-based Werthein Group, after taking on a $ 4.6 billion impairment charge.
The telecom operator said it noted the asset impairment charge in the second quarter of 2021, as it had classified Vrio as “for sale.”
The company did not disclose the value of the transaction for which it will sell Vrio to the Werthein Group. AT&T is scheduled to present its second-quarter results on Thursday.
“Our vision for the future is to maximize these leading entertainment brands in Latin America, maintaining their leadership and increasing their value proposition by investing in technology and content”, commented on the operation Darío Werthein, of the Werthein Group, according to different Argentine media.
The deal closes amid stiff competition for cable television service providers as the industry struggles with the cancellation of customer accounts and the move to video streaming services such as Netflix Inc and Disney + from Walt Disney Co. .
Additionally, AT&T has been trying to ditch its debt-laden acquisitions and lighten its balance sheet.
Vrio Corp’s operation is expected to close in early 2022. AT & T’s 41.3% stake in Sky Mexico is not part of the deal, the company said Wednesday.