AT&T Inc on Monday unveiled a three-year strategic plan that included adding two new board members, selling off up to $10 billion worth of non-core businesses next year and paying off all its debt from the purchase of Time Warner, bowing to pressure from activist investor Elliott Management.
The second-largest US carrier by subscribers has struggled with a stagnant stock price as it has spent hundreds of billions on a bet that owning media content, as well as all the ways that people can consume content through their phones, TV and internet, would pay off.
But its heavy debt load and declining revenue from segments like satellite provider DirecTV brought criticism from Elliott, which revealed a $3.2-billion stake in AT&T in September. Shares of AT&T were up 4.6% to $38.60 in morning trading. AT&T announced the plan on the day it released third-quarter results that saw worsening results in several areas, including DirecTV and WarnerMedia, which includes the Turner TV networks and HBO.
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