Selling DirecTV Could Simplify AT&T’s Business: BofA Analyst

AT&T Inc. (NYSE: T) is in talks with private equity investors to potentially sell its DirecTV business, The Wall Street Journal reported Friday. 

AT&T’s efforts to sell its stake in the satellite TV unit may outweigh the financial benefits expected from the sale, according to BofA Securities.

The AT&T Analyst: David Barden maintained a Buy rating on AT&T with a $36 price target. 

The AT&T Thesis: The Wall Street Journal article said AT&T had previously considered combining the DirecTV business with DISH Network Corp (NASDAQ: DISH), but there were regulatory and other overhanging issues, Barden said in a Monday note. (See his track record here.)

The newspaper indicated a price of below $20 billion for the sale, the analyst said. Such a deal would be only “slightly accretive” to AT&T’s free cash flow and earnings, with estimated synergies of $2 billion in the first year after the divestment versus the

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