At the last minute, AT&T withdraws the planned IPO of its Vrio unit
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My hope is that With a deafeted merger, Randall will be out the door and perhaps we have a new direction out of Latin America.
So what’s going to happen now since the IPO is retracted? No more dtv Latin America?
Well, well, the company's official reason was "The company made this decision based on current market conditions". In other words, they couldn't get the price for the offering they were after trying to sell this lemon. I guess they are finding out that the market is smarter then management was at the time they bought into these businesses. AT&T’s international segment showed revenue growth of 16% in the last quarter to $2.2 billion, but it continues to lose money due to the expense of building out its operations in Mexico and the cost of gaining subscribers there. While the revenue growth was nice, I don’t see AT&T being able to generate a sufficient return in Mexico to justify the amount of capital being spent there. AT&T operates at a major scale disadvantage to America Movil, which serves 7 times as many customers. AT&T plans to invest $3 billion in its Mexican networks through 2018 and will probably endure more operating losses during this period.
And the South American business is in even worse shape which clearly impacted this IPO. It is not surprising that this IPO failed. Add this to the T-Mobile disaster, the questionable DTV deal (I am being charitable here!) and you can now see why Randy has bet the business on pulling off the Time-Warner deal. Remember, three strikes (bad deals) and you are out Randy!!
AT&😐T DID
Offers to the IPO was about 40% below premium. Obviousky T has ssues difficulty getting investor interest to raise the desired capital, the company issuing the shares may cancel the offering in favor for some other form of financing, unfortunately their boatload of Debt will present many problems. Specially with raising interest rates
I have an idea... Maybe AT&T can purchase it from themselves! They do like to overpaying for dying businesses after all!