It appears AT&T has found a buyer for its beleagured DirecTV business.
AT&T announced today he will set up a new company with the private equity firm TPG called New DirecTV which will oversee AT & T’s video business DirecTV, U-verses, and AT&T TV, the latter of which recently recorded the company’s AT&T TV Now service. The agreement, which was report which is likely to be announced this week, the new company is reportedly valued at $ 16.25 billion. AT&T will own 70% of the business, while TPG will own 30% of New DirecTV.
The $ 7.8 billion deal is expected to be finalized in the second half of 2021, and AT&T has said it will use the money to help mountain of debt. It is unclear whether the agreement will have a significant impact on the services as it currently exists and works, but AT&T said the newly formed company “will offer a competitive video service with the best content in its class.”
“This agreement joins our investment and operations focus on connectivity and content, and the strategic ventures that are key to growing our customer relationships in 5G wireless, fiber and HBO Max,” said AT&T CEO John Stankey. statement. “And it supports our deliberate commitment to capital distribution to invest in growth areas, maintain the dividend at current levels, focus on debt reduction and restructuring or to earn non-core assets.”
He added: ‘As the pay-TV industry continues to evolve, the formation of a new entity with TPG to manage the US video business separately provides the flexibility and dedicated management focus needed to continue to meet the needs of a provide high customer base and business for profitability. ”
Restructure or monetize non-core assets, you say? I wonder how much more WarnerMedia power service fire sales a la Crunchyroll which we will read about in the future.
G / O Media can get a commission