Why Some on Wall Street Want AT&T and Comcast to Spin Off Media Units

Some on Wall Street aren’t convinced that housing movie studios, networks and streaming services with telecom operations is the best move for either business or the stocks of the combined firms. “Pure content companies are commanding markedly higher premium-valuation multiples versus pay TV and/or wireless companies,” says CFRA Research analyst Tuna Amobi. Put simply, says Pivotal Research Group analyst Jeff Wlodarczak, “Investors tend to prefer pure-plays” now.

Source: Why Some on Wall Street Want AT&T and Comcast to Spin Off Media Units

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