AT&T Writes Down $1.1 Billion on Venezuelan Adjustment
- DirecTV assets in Venezuela now valued at about $75 million
- Telco applies conservative exchange rates amid devaluation
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AT&T Inc., about three months after completing its $48.5 billion acquisition of DirecTV, is erasing $1.1 billion from its books -- or almost the entire value of DirecTV’s Venezuela assets based on a more conservative currency exchange rate.
DirecTV had valued its Venezuelan business at $1.17 billion as of June 30, using a rate of 6.3 Venezuela bolivars to $1. AT&T, which values its cash and assets in Venezuela as effectively stranded, is now applying an exchange rate of 200 bolivars to $1, according to a filing last month. This would reduce the Venezuela asset value to about $75 million.