AT&T is exploring options, including a sale, of Digital Life, the company’s home security and home automation service, Reuters reported, citing people familiar with the situation.
Reuters said AT&T might look to sell the division as it looks to pay down debt after its proposed acquisition of Time Warner Inc.
Digital Life has between 400,000 and 500,000 subs and AT&T might get $1 billion for it, Reuters said, noting that AT&T might also seek additional divestitures to trim down its debt load.
UPDATE:AT&T said it does not comment on rumor or speculation.
If AT&T decides to sell Digital Life, it would add to a recent mix of M&A in the home security/smart home sector.
DirecTV, which merged with AT&T in, recently sold LifeShield, a DIY home security service/platform, to Hawk Capital Partners. DirecTV acquired LifeShield in 2013.
Comcast and Alarm.com acquired different parts of Icontrol in March. EchoStar, meanwhile, had entered the DIY home security market with a product called Sage By Hughes, but exited the business last fall.