AT&T’s Debt Load Slows Its Metamorphosis Into Media Powerhouse
- Progress on that front coincides with loss of TV, phone users
- Shares have lagged far behind rival Verizon since early 2018
The AT&T Inc. logo is displayed outside a store in New York, U.S.
Photographer: Christopher Lee/BloombergThis article is for subscribers only.
When AT&T Inc. acquired Time Warner Inc., investors fretted that show business was going to become a big distraction. But it’s the debt from that deal that’s turned into the real headache.
AT&T framed the $85 billion acquisition as a transformative move, giving the company the best films and TV programs to pipe into homes, mobile phones and tablets, and positioning the telecom giant to parry Netflix Inc.’s assault on pay TV. But a $176.5 billion debt pile is standing in the way, slowing AT&T’s ability to deliver on those promises.