AT&T to Sell Mexican Mobile Unit for Over $2 Billion

AT&T is exploring the sale of its Mexican mobile unit for over $2 billion after over a decade of trying to gain ground on Carlos Slim's dominant operator in the country. The deliberations are ongoing, and no final decision has been made.

AT&T Inc. (NYSE: T) is reportedly in talks to sell its Mexican mobile operations for more than $2 billion, according to a report from Bloomberg. The Dallas-based telecommunications giant has been struggling to gain traction in the Mexican market, where Carlos Slim's Telcel, part of America Movil (NYSE: AMX) SAB group, holds a dominant position [1].

AT&T has been operating in Mexico for over a decade but has faced significant challenges competing against Telcel. Despite its efforts, AT&T has been unable to make significant inroads in the market. The ongoing deliberations about a potential sale indicate AT&T's desire to exit a market where it has faced substantial competition [2].

The sale is expected to be a significant transaction, with the Mexican unit accounting for approximately 3% of AT&T's revenue. The company has been working with advisers to facilitate the sale, but no final decisions have been made, and there is no guarantee that AT&T will find a buyer for the Mexican unit [1].

AT&T has declined to comment on the matter, and the details of the potential sale remain confidential. The company's Chief Operating Officer, Jeffery McElfresh, recently purchased 2,291 shares of AT&T stock, signaling confidence in the company's potential [3]. However, this insider purchase does not necessarily indicate a positive outlook for the Mexican unit's sale.

The sale of the Mexican unit could potentially streamline AT&T's operations and allow the company to focus on its core businesses. It remains to be seen whether AT&T will find a buyer and how the sale will impact the company's financial performance.

References:
[1] https://www.investing.com/news/stock-market-news/att-seeks-over-2-billion-for-mexico-unit-sale--bloomberg-93CH-4177554
[2] https://za.investing.com/news/stock-market-news/att-seeks-over-2-billion-for-mexico-unit-sale--bloomberg-93CH-3826729
[3] https://www.benzinga.com/insights/news/25/08/46861276/62k-reasons-to-be-bullish-on-at-t-stock