4 Reasons AT&T Shouldn’t Sell WB Games
AT&T (NYSE: T) could sell its Warner Bros. Interactive Entertainment gaming division for about $4 billion, according to a recent CNBC report. Interested parties reportedly include Activision Blizzard (NASDAQ: ATVI), Electronic Arts (NASDAQ: EA), and Take-Two Interactive (NASDAQ: TTWO).
AT&T inherited WB Games after its $85 billion takeover of Time Warner in 2018. Selling the unit would help reduce its total debt of $164.3 billion -- which was mainly accumulated from its acquisitions of DirecTV, AWS-3 spectrum licenses, and Time Warner. It would also free up more cash for the expansion of its streaming media services.
A sale makes strategic sense, but AT&T could be prematurely dumping a promising business. Let's discuss four simple reasons AT&T should keep WB Games instead of divesting it for some quick cash.
Source Fool.com
