AT&T Changes Spurred By Activist Investor Push
NEW YORK (AP) — AT&T will review its portfolio for assets it can sell off, pay down debt related to its Time Warner acquisition and add two board members as part of a plan to boost results.
The moves come after criticism from hedge fund manager Elliott Management. In September the activist disclosed a $3.2 billion investment in AT&T, roughly a 1% stake, and called for changes at the company such as selling assets and paying down debt.
AT&T Inc. also said Monday CEO Randall Stephenson will stay on through 2020. Stephenson called conversations with Elliott Management “constructive.”
AT&T is readying a streaming service set to launch in 2020 following its $81 billion purchase of Time Warner as more customers abandon traditional pay TV.
Shares of the Dallas company jumped 5% in morning trading.