In a major move to refocus on its core businesses, telecommunications giant AT&T has agreed to offload its majority stake in DirecTV, a leading satellite TV service provider, to private equity firm TPG in a deal worth $7.6 billion. This transaction marks a significant shift for AT&T, which has been grappling with declining revenue streams from its satellite TV operations.
As part of the agreement, TPG will acquire a 70% stake in DirecTV, building on its existing 30% holding in the company. This partnership was first established in 2021, when TPG invested $1.8 billion in cash to acquire its initial stake, valuing DirecTV at around $16 billion at the time.
The sale, which is expected to close soon, will enable AT&T to concentrate on its core strengths in wireless and fiber connectivity, while also bolstering its financial position. Under the terms of the deal, AT&T will receive an initial payment of $2 billion in 2025, followed by additional payments through 2029.
This strategic move is seen as a key step in AT&T’s efforts to streamline its operations and improve its balance sheet, paving the way for future growth and investment in its core businesses.
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