AT&t is selling its voice- and video-calling business to Microsoft for $13.6 billion in cash, a deal that is expected to increase AT&T’s mobile revenue and the number of handsets it sells.
The deal is a deal worth about $7 billion to AT&ts, the Wall Street Journal reported.
The transaction, which was first reported by The Wall Street Street Journal, comes as AT&s continues to focus more on mobile and the growing number of smartphones in its portfolio.
AT<ies deal is expected increase ATs mobile revenue by about $15 billion, and that could have a ripple effect on its wireless revenues, the Journal said.
Microsoft has been an early backer of AT>imes business.
In November, AT&ttos $100 billion acquisition of Nokia’s handset business.
The deal comes as Apple Inc., which has been working with AT&ctimes phone and video business to boost revenue, is considering a $1 billion acquisition.
Apple, which is rumored to be considering a similar deal, is already a big player in the smartphone market with the iPhone.
Apple is expected soon to announce plans to sell a new iPhone model, which will feature a 4.7-inch screen and an A10 processor.
Apple has already made major investments in the video and video calling business.
AT &ts said it would give AT&rtts stock options to its employees that would vest over four years and include stock in AT&nts common stock, the WSJ reported.
AT/amp;t will also offer cash compensation for its employees, the newspaper reported.