Jul 21 (Reuters) – AT&T Inc said on Wednesday it will sell Vrio Corp, its DirecTV business unit in Latin America, to the Argentina-based Werthein Group, after taking a $ 4.6 billion impairment charge. .
The telecoms operator said it booked the asset impairment charge in the second quarter of 2021 as it had classified Vrio as “for sale.”
The company did not disclose the value of the transaction for which it will sell Vrio to the Werthein Group. AT&T is scheduled to present its second-quarter results on Thursday.
The deal closes amid stiff competition for cable TV service providers as the industry struggles with the cancellation of customer accounts and the move to video streaming services like Netflix Inc and Disney + from Walt Disney Co. .
Additionally, AT&T has been trying to ditch its debt-laden acquisitions and lighten its balance sheet.
Vrio Corp’s operation is expected to close in early 2022. AT & T’s 41.3% stake in Sky Mexico is not part of the deal, the company said Wednesday.
(Report by Akanksha Rana in Bengaluru; Edited in Spanish by Javier López de Lérida)