Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Photo: Smith Collection/Gado/Getty Images
As pressure mounts from an activist investor, AT&T said Wednesday it will sell its wireless and wired assets in Puerto Rico and the U.S. Virgin Islands for about $2 billion to Liberty Latin America.
Why it matters: AT&T is looking for assets to sell to alleviate debt, and analysts say the properties in the hurricane-prone islands are a logical target.
- “Puerto Rico and the U.S. Virgin Islands are small markets that aren’t contiguous with the rest of AT&T’s properties, they’re not big enterprise opportunities, and they’ve been whacked by hurricanes,” said Jonathan Chaplin, an analyst with New Street Research.
The big picture: The company is feeling the heat after a letter from Elliott Management criticizing AT&T’s strategy and its past acquisitions.
- AT&T said in the announcement that it would sell $6 billion to $8 billion worth of assets this year, but this deal puts the total at $11 billion.
Yes, but: “They might have surpassed their own goal. They have probably not surpassed Elliott’s goal,” said Roger Entner, founder of Recon Analytics. “And they still have to work around that. Elliott is certainly looming here in the background.”
What's next: Analysts say to expect AT&T to divest more assets as it tries to stay ahead of the pressure.