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AT&T to sell TV systems?
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December 6, 2000: 12:39 a.m. ET
Puts $3B worth of cable TV systems in Montana and Iowa on selling block, report says
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NEW YORK (CNNfn) - AT&T Corp.'s Broadband unit is trying to unload some of its newly acquired cable-TV systems that could be worth at least $3 billion, according to a published report.
The Wall Street Journal's Web site reported Wednesday morning that the company, under pressure to conserve cash and boost its share price, has placed about 1.2 million cable-TV subscribers in Montana and Iowa on the auction block.
A couple of big cable-TV operators have taken a look, but so far no serious buyers have emerged, the story said. AT&T (T: Research, Estimates) declined comment.
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 WHY SELL SOME CABLE TV SYSTEMS?
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Many of the systems for sale are located in rural areas that aren't strategically aligned with the rest of AT&T's expansive cable-TV empire.
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An unidentified person close to the company said the latest sale attempt is aimed at better "clustering" AT&T's cable-TV properties, the Journal reported. Many of the systems for sale are located in rural areas that aren't strategically aligned with the rest of AT&T's expansive cable-TV empire, the story said.
The move comes at a time when AT&T is under increasing pressure to conserve cash and boost its flagging stock price. The company, facing intense scrutiny from credit-rating agencies because of its $62 billion debt load, is planning major, nonstrategic asset sales over the next several months, the story said.
The sales are aimed at shaving $25 billion in debt off the books. They come on the heels of a plan to break the company into three separately traded companies, consisting of cable, wireless and consumer long distance combined with business services, the story said.
Two other significant cable divestitures could be the sale of AT&T's 25 percent stake in Time Warner Entertainment and its 30 percent stake in Cablevision Systems Corp., the Journal reported. Time Warner Inc. (TWX: Research, Estimates) is the parent firm of CNNfn.com. 
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