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.
Michelle Chapman, The Associated Press