AT&T has cut a deal to sell and lease back its WarnerMedia office space in New Yorks glitzy Hudson Yards development for $2.2 billion to help pare down its enormous debt load.
AT&T said Tuesday it has set a deal to sell its office space at 30 Hudson Yards to an affiliate of Related Companies, the developer of the 14-acre Westside residential and retail development that opened with great fanfare in March.
AT&T said it has struck a long-term lease with Related Companies to keep WarnerMedia on the site through early 2034. WarnerMedia properties in New York are in the process of relocating from Time Warner Center in Columbus Circle to the new digs in Hudson Yards. For the first time in years, HBO will share an office location with its corporate siblings as it relocates from its Bryant Park outpost to the new Hudson Yards space. Time Warners move to Hudson Yards was initiated in 2014 by previous CEO Jeff Bewkes.
AT&T will use proceeds from this transaction, along with additional planned sales of non-core assets, to reduce its debt, the telecom giant said in announcing the sale.
AT&T is under pressure to raise cash from asset sales to help chop down its debt load of more than $170 billion following its purchase of Time Warner last year. Earlier this month, AT&T set a deal with the Hulu partners to offload its 9.5% stake in the streaming giant for $1.4 billion.
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