AT&T looking at possible $100M IPO for DirecTV Latin America

DirecTV rooftop satellite dish
This week, AT&T filed a registration statement for the possible initial public offering of Vrio Corp. (DirecTV)

AT&T said it expects to generate as much as $100 million through a U.S. IPO of its DirecTV Latin America business.

This week, AT&T filed a registration statement for the possible initial public offering of Vrio Corp., the holding company that houses the DirecTV satellite TV operations in South America and the Caribbean. It is widely believed that AT&T is exploring a divesture of the asset, which has been valued at more than $10 billion. AT&T is looking to pay down debt of more than $180 million as it also looks to close on its purchase of Time Warner Inc. 

RELATED: DirecTV exploring IPO of Latin America business

Sponsored by Dell Technologies

Whitepaper: How to Elevate Your Content Delivery Workflows With Dell EMC PowerScale

Learn how Dell EMC PowerScale helps meet surging viewer demand while reducing costs with a single centralized platform for the ingest, processing, and delivery of the content your viewers love.

Vrio operates in eight countries in South America and three in the Caribbean. It’s satellite services are branded under Sky in Brazil, but under DirecTV in Barbados, Colombia, Curacao, Ecuador, Trinidad and Tobago, Venezuela, Argentina, Chile, Peru and Uruguay.

AT&T reported 13.6 million Latin America subscribers at the end of 2017. AT&T would maintain majority voting control over Vrio after the IPO.

RELATED: DirecTV to pay $2M in Chile for alleged overheating, uncertified set-tops

DirecTV Latin America drove revenue of $5.57 billion in 2017, up 10.9% year over year. Net income was $222 million compared to a net loss of $356 million in 2016.

Suggested Articles

Antenna, a new startup that provides analytics for subscription-based services, has secured $4.2 million in seed funding from Raine Ventures. 

Warner Bros. traveled a heretofore unthinkable path this week when it said it would send all its 2021 films directly to HBO Max.

Warner Bros. Pictures will release its entire 2021 film slate on HBO Max the same day they premier in theaters.