The Math Doesn't Lie: DirecTV is Worth a Lot Less Than AT&T Paid
Will it or won't it? Despite pressure from activist investor Jesse Cohn, AT&T (NYSE: T) initially appeared disinterested in shedding its struggling DirecTV unit. After last Monday's earnings conference call and Tuesday's strategy update for shareholders, though, it appears the telecom giant may be willing to let go of its satellite television arm after all.
The question is, would a buyer be willing to take on the tough rebuilding project at a price AT&T and its investors can live with? The unit's results and fiscal trajectory suggest the company's better bet may well be to try and rekindle its television unit for itself.
Elliott Management's partner and de facto spokesperson for the fund's position in AT&T, Jesse Cohn, made a fair point within the firm's early September letter to the telecom company's board of directors. That is, AT&T acquired DirecTV "at the absolute peak of the linear TV market," shelling out $67 billion (including debt) for the outfit in 2014.
Source Fool.com
