Categories Technology

AT&T’s subsidiary Vrio files for IPO

Vrio Corp, the DirectTV business of AT&T (T) based in Latin America, which confidentially filed for an IPO early this year, said it expects to raise about $653 million through the process.

Courtesy – Wikimedia Commons

Based on the latest amended form filed by Vrio, it is said that the firm expects to value its 29.68 million shares of Class A common stock in the range of about $19 to $22 per share. The company has also highlighted the possibility of an additional allotment of 4.45 million shares. Vrio plans to publicly trade its share on NYSE under the ticker VRIO.

AT&T, which is currently battling it out with the U.S. Department of Justice over its proposed $85 billion purchase of Time Warner (TWX), initially planned to unload this Texas-based unit – that includes satellite and cable TV services – in order to pay down its debt which would soar after it seals the deal with Time Warner.

Vrio– that offers services to Colombia, Brazil, and Argentina — sees a huge potential in Latin America mostly due to the improved economic conditions as well as the regulatory environment. In fact, the company has had a strong financial performance but has a distance to travel to prove its mettle as a separate entity – especially in the current competitive market.

Founded in 1996, Vrio was acquired by AT&T in 2015 as part of its acquisition of DirectTV. Currently, AT&T stands as a sole shareholder of the company that is headed by Jeffery McElfresh. Vrio’s satellite pay-TV network offers services to about 7.9 million Americans. At the end of 2017, Vrio’s subscriber rate surged 9.3 %.  Even after Vrio’s IPO, AT&T would retain its major voting control over the unit.

Also Read:  Has Alphabet (GOOG) lost charm after its revenue and profit skid in Q2?

As of December 31, 2017, Vrio reported revenue growth of over 11% to $5.57 billion. The company had a total of $443 million in cash. DirectTV Latin America reported 10.9% growth in its revenue last year to $5.57 billion.

Most Popular

Novavax (NVAX) tops Q2 2020 bottom line targets, misses revenue views

Novavax (NASDAQ: NVAX) reported a loss of $17.5 million or $0.30 per share for the second quarter of 2020. Revenue jumped to $35.54 million in Q2 from $3.36 million in

Tilray Q2 loss widens despite revenue growth; results miss

https://www.youtube.com/watch?v=KqNZ-_X4F8k&t=2s Cannabis company Tilray, Inc. (NASDAQ: TLRY) Monday reported a wider net loss for the second quarter of 2020, despite a marked increase in revenues. Revenues of the Canada-based company

Infographic: Duke Energy Q2 2020 Earnings Results

Duke Energy (NYSE: DUK) reported second-quarter financial results before the market opened on Monday.  The energy holding company surpassed earnings expectations by 5 cents per share during the quarter. DUK

Tags

Top