AT&T (T:NYE) is reportedly considering selling its cybersecurity business, which includes AlienVault, as it seeks to streamline operations and reduce its debt. The company has been working with Barclays to solicit bids and analysts have noted that the rationale for the acquisition of AlienVault in 2018 has been eroded by the emergence of cheaper cybersecurity products and solutions.
AT&T has divested several businesses in recent years to pay down the debt it amassed due to the acquisition of Time Warner in 2018, and has reduced its net debt by almost $24 billion to $132.2 billion in 2022. The company aims to further lower its net debt to about $100 billion by 2025 and is working to achieve a cost savings run rate of $6 billion or more by the end of this year.
AT&T has a consensus rating of Buy and AT&T stock price target of $20.81 on Wall Street, indicating a 13.6% upside.
AT&T Inc. provides telecommunications and technology services worldwide. The company operates through two segments, Communications and Latin America.
The Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, and carrying cases and hands-free devices through its own company-owned stores, agents, and third-party retail stores.
It also provides Virtual Private Networks, AT&T Dedicated Internet, Ethernet, data services, security, cloud solutions, outsourcing, and managed and professional services, as well as customer premises equipment for multinational corporations, small and mid-sized businesses, governmental, and wholesale customers.
In addition, this segment offers broadband services, including fiber connections and legacy telephony voice communication services to residential customers. This segment markets its communications services and products under the AT&T, Cricket, AT&T PREPAID, and AT&T Fiber brand names.
The Latin America segment provides postpaid and prepaid wireless services in Mexico under the AT&T and Unefon brand names, as well as sells smartphones through its owned stores, agents, and third-party retail stores.
The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in 2005. AT&T Inc. was incorporated in 1983 and is based in Dallas, Texas.