AT&T may take USD 1.1 bln charge on Venezuela assets

News General Venezuela 1 OKT 2015
AT&T may take USD 1.1 bln charge on Venezuela assets

AT&T may have to take a charge of around USD 1.1 billion related to the assets of DirecTV's Venezuela subsidiary due to the South American country’s economic crisis, reports Reuters. According to an SEC filing, AT&T is considering whether to use a less preferential currency exchange rate to value DirecTV’s assets in Venezuela. The value of DirecTV's USD 1.1 billion in Venezuelan assets is currently based on an exchange rate of 12 Venezuelan bolivars (VEF) per USD. In the filing AT&T said it may value the assets at the so-called Simadi exchange rate of around 200 VEF per USD, erasing nearly all their value.

DirecTV Venezuela reported revenues of around USD 200 million in the first quarter of 2015. AT&T completed its USD 48.5 billion merger with DirecTV in July to become the largest US pay-TV company.

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General

Companies:

DirecTV

Countries:

Venezuela

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Financial funding, M&A buyouts & divestments

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