© Reuters.
AT&T (NYSE:) is preparing to spin off its cybersecurity division into a new, independent firm by early 2024 while planning to retain majority ownership and collaborate with venture capital firm WillJam Ventures. The upcoming venture, currently codenamed “Knight,” is set to specialize in security software, managed services, and consultative strategies.
The announcement comes after the telecom giant faced challenges integrating its AlienVault acquisition, leading to a strategic shift towards reseller channels and a subsequent decrease in market presence. Despite these issues, AT&T reaffirmed its dedication to advanced network security through the words of Rick Welday, indicating that the company remains committed to the sector amidst an industry-wide investment surge.
The independent entity will inherit AT&T’s cybersecurity consulting operations and tools, which have been refined since the AlienVault acquisition. It aims to enhance agility and market adaptability for AT&T’s cybersecurity consulting team. Industry experts have suggested that the separation could unlock improved marketing opportunities and research and development potential.
Cybersecurity veteran Bob McCullen of VikingCloud and GoSecure fame is slated to lead the joint venture with WillJam Ventures. The transaction is expected to be finalized in Q1 2024, signaling a significant restructuring within AT&T’s business strategy as it seeks to navigate the rapidly evolving cybersecurity landscape.
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