By MICHELLE CHAPMAN, AP Business Writer
AT&T is selling its majority stake in DirecTV to private equity firm TPG Partners for $7.6 billion, ending the communication giant's remaining ties to the entertainment industry.
AT&T said Monday in a filing with the Securities and Exchange Commission that it will receive payments from TPG and DirecTV for its remaining 70% stake in the satellite TV company. This includes $1.7 billion in the second half of the year and $5.4 billion next year. The remaining amount will be paid in 2029.
AT&T purchased DirectTV for $48.5 billion back in 2015. But in 2021, following the loss of millions of customers, AT&T sold a 30% stake of the business to TPG in a deal valued at $16.25 billion.
Like many traditional TV providers, DirecTV has been dragged down by dwindling demand and other headaches in the ever-evolving media landscape.
At the start of September, DirecTV's 11 million subscribers abruptly lost access to ESPN, the ABC-owned stations and other Disney-owned channels such as FX and National Geographic in a dispute over carriage fees and programming flexibility. After a nearly two-week blackout, DirecTV said it had reached a deal with Walt Disney Co. to restore the stations.
AT&T said that the deal will allow it to focus on being a wireless 5G and fiber connectivity company and strengthen its balance sheet.
The transaction is expected to close in the second half of 2025.
Shares of AT&T Inc. rose slightly before the market opened on Monday.
If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.
No comments:
Post a Comment