AT&T is selling its entire stake in DirecTV to private equity firm
AT&T announced earlier today that it’s selling its remaining 70 percent stake in DirecTV to TPG, the same private equity firm that owns the other 30 percent stake in the company.
DirecTV seems to have been bad business for AT&T. The carrier bought the entertainment-focused company back in 2015 for no less than $48.5 billion. Six years later, AT&T decided to enter into a joint venture with TPG by selling it a 30 percent stake in the company for $1.8 billion.
Fast forward three more years and it looks like AT&T is completely unhappy with how things worked out for DirecTV and decided to give up on the entertainment industry.
The fact that millions of DirecTV subscribers jumped on the streaming services bandwagon was probably one of the main reasons that AT&T decided to sell its stake in DirecTV as soon as the three-year lock-in period expired.
The original deal with TPG involved a lock-in period of 3 years during which AT&T couldn’t sell its stake to anyone. As it happens, the lock-in period is now over, so AT&T is handing over full control of DirecTV to the private equity firm.
AT&T notes in a press release that it’s selling its entire 70 percent stake in a non-contingent transaction subject only to customary closing conditions. The carrier also mentions that the sale will allow it to focus on its core business.
It’s important to mention that the deal is valued at $7.6 billion and is expected to close in the second half of 2025.
DirecTV seems to have been bad business for AT&T. The carrier bought the entertainment-focused company back in 2015 for no less than $48.5 billion. Six years later, AT&T decided to enter into a joint venture with TPG by selling it a 30 percent stake in the company for $1.8 billion.
Fast forward three more years and it looks like AT&T is completely unhappy with how things worked out for DirecTV and decided to give up on the entertainment industry.
The fact that millions of DirecTV subscribers jumped on the streaming services bandwagon was probably one of the main reasons that AT&T decided to sell its stake in DirecTV as soon as the three-year lock-in period expired.
The original deal with TPG involved a lock-in period of 3 years during which AT&T couldn’t sell its stake to anyone. As it happens, the lock-in period is now over, so AT&T is handing over full control of DirecTV to the private equity firm.
AT&T notes in a press release that it’s selling its entire 70 percent stake in a non-contingent transaction subject only to customary closing conditions. The carrier also mentions that the sale will allow it to focus on its core business.
This sale allows AT&T to continue to focus on being the leading wireless 5G and fiber connectivity company in America. This transaction also continues to strengthen AT&T’s balance sheet by pulling forward cash expected over the next several years.
It’s important to mention that the deal is valued at $7.6 billion and is expected to close in the second half of 2025.
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