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AT&T Reportedly Explores Sale Of Its Data-center Business

AT&T Inc. (T) has engaged Bank of America Corp. to explore a divestiture of its data centers, the Wall Street Journal reported citing people familiar with the matter.

The data-center business generates about $135 million of earnings before interest, taxes, depreciation and amortization, the report said.

AT&T previously had weighed a sale of its data-center and managed-hosting businesses with Citigroup Inc., the report said. Ultimately, it sold only the hosting business, which IBM Corp. purchased in 2015.

AT&T is looking to sell the capital-intensive data centers to better focus on its core wireless and video businesses. The process is still ongoing, however, and may not result in a deal. The facilities will require investment and attention from prospective acquirers, the report said.

by RTTNews Staff Writer

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