Sony gains ownership of Game Show after buying minor stake in AT&T

Japanese multinational conglomerate, Sony Corporation SNE recently sealed a transaction of USD 500 million to acquire AT&T’s T minority stake in GSN (Game Show Network). The newly made move is Sony’s concerted effort to focus more on D2C (direct-to-consumer) offerings.
From past few years, GSN has remained a joint venture of AT&T and Sony. Sony had a 52% ownership stake in GSN, and the rest of the stake was held by AT&T. The transaction allocates full ownership of the multimedia entertainment firm to Sony. However, the Game Show Network channel will continue to be aired on the cable network of DIRECTV, a subsidiary of AT&T.
For the record, GSN offers a range of original & classical game shows for millions of subscribers across the U.S.-based cable network. GSN not only provides online & mobile gaming facilities, but also offers game lovers the opportunity to win cash & prizes through interactive games, via its cross-platform.
The disposition of GSN by AT&T was part of the long-term strategy of the firm to monetize assets through the sale of its non-core business to reduce debt burden.
Apparently, AT&T is aiming to achieving a debt-to-EBITDA range of 2.5x by the end of 2019, by using cash flow & proceeds from the sale of its non-core assets.
The recent acquisition will augment Sony’s panoramic catalogue of game shows & first-run series. This will bolster Sony’s position as a leader in the market. Sony has been reportedly focusing to accomplish a compact organizational structure to fuel its growth engine. The firm has also announced a number of changes in its internal administration and is  planning to reshuffle its operating segments.
Sony believes that refiguring its business units into separate subsidiaries can enhance its organizational independence. These independent units will set high targets in an effort to achieve the company’s mid-term targets. Sony deems that these measures will allow the firm to accelerate decision-making processes, generate sustainable profit, and strengthen business competitiveness, which will favor company’s growth in future.
Source Credit: https://finance.yahoo.com/news/sony-acquires-t-stake-full-133901336.html