AT&T abandoning plans for HBO: Scrambled tech hurdle
Wireless network connectivity giant AT&T had grand plans to start working with HBO, but things are not looking great so far. As a result, the scrambled process of being a top tier network company to a failed streaming servicing company turned out quite a hurdle.
AT&T Inc. is the largest distributor of wireless telecommunication networks in the world. As far as their brand goes, there is no shortage of profit for the company because, let's face it, everyone needs telecommunication to make calls. Due to the rise of political controversies, the company is taking a hit on its brand name.
AT&T made the mission of selling every asset acquired under the former chief executive officer one of the primary goals in recent years. Bloomberg said the mission is paying out wildly, but HBO's current hurdle gave birth to controversies that the company was not ready to tackle. Tech companies of this scale rarely come under a false impression as the provided service is far too important. Nevertheless, the Dallas-based wireless giants' public image is taking a hit in the process and generating many unhappy stockholders. The company seemed not to be cleared of the Texas abortion controversy and pro-Trump media network.
On Thursday, AT&T's stock price was a per cent higher before those gains seemed to get away, later turning an 11-year low. Axios Dallas reported, AT&T quietly became a powerhouse in conservative politics, and it seems true. CNBC published a report on 4 October 2021 saying democratic super PAC campaigns are launched as AT&T donated to lawmakers that sponsored the Texas abortion bill. This law supported banning abortions for pregnancies as early as six weeks. When the state pursued the restrictive abortion bill, Hollywood studio owners protested by threatening not to work in Georgia in 2019.
HBO Max streaming-TV services owned by AT&T's WarnerMedia is slowly transitioning to a new pace as the communication giant neglected the HBO Max service subscriber count tripled. Other assets under WarnerMedia owned by AT&T is in talks to sell to Discovery Inc within next year. Investors are now only keen on 5G preference and its profit metric to stay on the supporting side. AT&T also has a home-internet business, and it is a large part of the company's economy, though not as large as the wireless network communication side.
Even a year back, the company was under debt, but the buying spree didn't stop. Gradually AT&T managed to clear that confusion and started paying up as profit margin started to rise.
John Stankey, CEO of AT&T said, their goal is not to acquire any more advertising technology businesses but to get rid of them eventually. Subsidiaries are not on point as company decision-makers hoped the debit would clear up.
According to Bloomberg, AT&T said they were not interested in making callouts on the public abortion as corporate America seems frustratingly quiet.
At the moment, AT&T thinks these TV and streaming media is not contributing to the business ethics they are trying to achieve or the process they go through. So, selling them to appropriate companies who can value the acquisition is the best deal. Younger people give AT&T the most revenue, and their goal is to make services more lucrative or efficient. It will have another side which is fixing up company image to younger people.
Though the company exceeded Wall Street's expectations for profit and growth of wireless subscribers, concerns are still rising. Selling media assets should be the easiest turnover for the company to become debt-free, but controversies are hurting the company brand, which can be quite hard to recover.