AT&T (NYSE:T) is looking to grow its video and high-speed Internet businesses through two new initiatives.
AT&T and The Chernin Group, which manages and invests in media businesses around the world, announced the formation of a venture to acquire, invest in and launch over-the-top (OTT) video services. The two companies have committed more than $500 million in funding to the venture. Further financial terms of the transaction have not been disclosed. The strategic goal of the initiative will be to invest in advertising and subscription VOD channels as well as streaming services.
AT&T is also looking into ways to offer its U-verse with GigaPower service, designed to provide 1 Gbps speeds, in some 100 candidate cities and municipalities nationwide, including 21 new major metropolitan areas. The telco will be looking for communities that have suitable network facilities and show the strongest anticipated demand and the most receptive policies.
The 21 candidate metro areas include: Atlanta, Augusta, Charlotte, Chicago, Cleveland, Fort Worth, Fort Lauderdale, Greensboro, Houston, Jacksonville, Kansas City, Los Angeles, Miami, Nashville, Oakland, Orlando, San Antonio, San Diego, St. Louis, San Francisco, and San Jose.
