AT&T has agreed to sell its remaining 70% stake in DirecTV, bringing an end to the joint venture with TPG Capital. According to the terms of the agreement, AT&T expects to receive $7.6 billion as part of the deal.
In February of 2021, AT&T struck a deal with TPG Capital to create the new DirecTV company, which also eventually led to the rebranding of the AT&T TV service as DirecTV Stream. As per the terms of that original agreement, AT&T remained the majority owner in the new DirecTV company with a 70% stake, while TPG Capital assumed a 30% stake.
Following today’s agreement, TPG Capital has agreed to buy AT&T’s remaining stake, which will see TPG assume full control of DirecTV going forward.
“This transaction is the right next step for DirecTV as we advance our vision and continue to evolve our product to offer consumers the broadest array of content,” said Bill Morrow, CEO of DirecTV. “Our team is the best in the business, and we are driven to provide innovative video services with an outstanding customer experience. We are eager to deepen our support from TPG and invest in our video services to benefit customers nationwide.”
According to AT&T, the sale will now allow the company to focus on its wireless 5G and fiber connectivity businesses. Both companies expect the deal to close in the second half of 2025.
The announcement of the deal came shortly before a separate announcement earlier today which confirmed DirecTV is purchasing EchoStar’s video distribution business. Pending regulatory approval, the deal with EchoStar will see DirecTV take full control of Dish TV and Sling TV.
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