Report: AT&T to Sell Large Minority Stake in DirecTV and U-Verse to Private Equity Firm
AT&T is nearing a deal to sell a substantial minority stake in its DirecTV, AT&T TV, and U-Verse business to private-equity firm TPG, according a report by CNBC.
The deal will value the AT&T businesses around at $15 billion. AT&T acquired DirecTV in 2015 for $48.5 billion ($67 billion with debt).
AT&T has been pivoting away from traditional pay-TV to focus more on HBO Max in recent years. DirecTV, U-Verse and AT&T TV are based around a linear TV business of broadcast and cable networks that has seen a loss of nearly 3 million video customers last year.
A deal for DirecTV has been long rumored, as AT&T has looked for ways to pay down debt for the company to focus on HBO Max and 5G. At one point they had been linked to Dish Network for a merger, but a standalone sale seemed like a more likely route.