×

AT&T's Venezuela assets may be slashed by rate change

AT&T and DirecTV
CNBC; Getty Images

A change in exchange rates could wipe as much as $1.1 billion off the value of AT&T's newly acquired DirecTV assets in Venezuela, the company said in an SEC filing.

The former Dow Jones component finalized its $48.5 billion acquisition of the satellite TV provider in July.

AT&T said in the filing it is evaluating whether to use a less preferential Venezuela currency exchange rate to value more than $1.1 billion in DirecTV assets in that South American country.

"If AT&T changes to the Simadi exchange rate, it will have a negative impact on reported revenues, operating income and the fair value of our investment in the Venezuelan subsidiary," the company said in the SEC filing on Friday.

AT&T shares were slightly higher in late-morning trading.

—Reuters contributed to this report.

CORRECTION:
This story has been updated to clarify that AT&T will revalue its Venezuelan assets rather than take a charge against them.