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AT&T sells 70% stake in DirecTV to TPG for $7.6 billion

2024.09.30 06:26

(Reuters) – AT&T (NYSE:) said on Monday it would sell its 70% stake in satellite TV service DirecTV to private equity firm TPG for $7.6 billion, exiting a business marked by declining distributions for the telecom operator.

AT&T in 2021 signed a joint-venture agreement with TPG, which contributed about $1.8 billion in cash in exchange for a 30% stake in DirecTV that was valued at about $16 billion at the time.

The telecom company had agreed not to sell its stake in DirecTV for a three-year period, which expired on July 31.

© Reuters. FILE PHOTO: The company logo for AT&T is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., September 18, 2019. REUTERS/Brendan McDermid/File Photo

The stake sale would allow AT&T to focus on its core wireless and fiber connectivity operations and help improve its balance sheet.

AT&T would receive an initial payment of $2 billion in 2025, and additional payments through 2029, the company said in a filing on Monday.



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