AT&T Exploring Options to Sell Part or All of DIRECTV, DIRECTV STREAM
Disney is looking to sell its linear TV channels, Warner Bros. Discovery is out of the regional sports network business, and in the midst of a recent carriage dispute, Charter floated the idea of exiting the cable TV business altogether. Now, it looks like another major player in the world of television is looking to move on as Bloomberg is reporting that AT&T is exploring options to sell part or all of its 70% controlling interest in DIRECTV.
It has been no secret in the business for a number of years that the traditional TV business, which relies on customers to pay for collections of hundreds of channels — whether they watch most of them or not — was unsustainable. The advent of streaming services has allowed consumers to be more selective about the content that they pay for, which has led many to abandon cable and satellite providers in recent years. According to Nielsen, in July, streaming took the largest percentage of American TV-watching time in history.
Given the evolving state of the business, AT&T is looking to offload its depreciating satellite dish asset while it can. The Bloomberg report indicates that the telecom company is exploring a number of different options in relation to DIRECTV and its streaming product DIRECTV STREAM, and could be completely out of the TV provider business by late summer 2024.
“Among AT&T’s options are: a dividend recapitalization, adding a new investor, or selling the stake and exiting the venture as early as August 2024,” Bloomberg’s Scott Moritz, Michelle F Davis, and Gillian Tan noted. “A deal isn’t imminent and discussions are still in the early stages, they said. The current ownership structure may still continue as is.”
For years, there had been rumors about a potential merger between DIRECTV and its chief rival DISH. However, over the summer, reports circulated that those talks had stalled as DISH is in the midst of difficulties financing government-mandated 5G network expansion.
Whatever becomes of AT&T’s interest in DIRECTV, it is clear that what remains of the company will need to continue to evolve in order to stay relevant — and solvent — in the constantly changing video business.
DIRECTV STREAM
DIRECTV STREAM is a live TV streaming service, which is essentially the streaming version of the DIRECTV service. All packages include local channels and at least 31 of the top 35 cable channels. New subscribers can get a free Gemini streaming device from the company, in which case the service is called “DIRECTV via Internet.”