Why is AT&T exploring selling its adtech unit, Xandr?
There are three keys reasons:
1. AT&T new CEO, John Stankey, who has just assumed the role in July 2020, wants to focus on core business, while telcos globally are investing heavily in 5G-related infrastructure for the coming of the 5G era.
2. AT&T has spent US$136 billion in the last five years for building its media and advertising business by acquiring a media company (Time Warner), a satellite TV provider (DirectTV), and an advertising technology platform (AppNexus). The company is facing skepticism from investors, while its net debt is US$152 billion.
3. AT&T hoped that Xandr could become the video marketplace leader in the last two years. However, that Xandr is now part of the WarnerMedia would make other video or TV players not comfortable to work with Xandr because of the conflict of interest.
Thanks, Janice Tan and Marketing Magazine Group, for the invite for providing comments on this story. Do check out my views and that of Ranganathan Somanathan, Bharad R., and Mike Woosley, in this detailed article.
Full story: Analysis: Is AT&T’s potential divestment of Xandr an inevitable outcome?