The BT share price is soaring today after reports that the company is exploring selling its stake in BT Sports. The shares rose to 163p, which was the highest it has been since January 27. It is also 73% above its lowest level this year.
What happened: For starters, BT is the biggest telecommunication company in the UK. It competes with companies like Vodafone and TalkTalk. The company offers several services like sports broadcasting, voice, and OpenReach, the fibre business. Recently, it has been under pressure as its employees threaten a major strike.
The BT share price is surging today after reports that it is exploring selling BT Sports. The company is talking to companies like Amazon, Dazn, and Disney and has hired Lazard to advise on the sale. Still, because of its value, BT Sports could attract a number of private equity companies like Apollo and Blackstone. A sale will be welcomed by investors, who have suffered as the company slashed its dividends.
On the four-hour chart, we see that the BT share price has been on a strong momentum lately. The shares moved above the important resistance at 157p recently. It has also surged above the short and longer term moving averages and the previous ascending triangle pattern.
Therefore, in my view, the shares will continue rising in the longer term as bulls digest the company’s strategic initiatives. However, in the near term, we will likely see a pullback on profit-taking and as traders fade the news.
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