It looks like AT&T has found a buyer for its DirecTV business.
AT&T has announced today that he will set up a new company with the private equity firm TPG called New DirecTV which will oversee the AT&T DirecTV, U-verse and AT&T TV business, of which recently absorbed the company’s AT&T TV Now service. Understanding, that was reported which will be announced this week, is said to value the new company at $ 16.25 billion. AT&T will own 70% while TPG will hold 30% of New DirecTV.
The $ 7.8 billion deal is expected to be completed in the second half of 2021, and AT&T said it will use the money to help pay for it. mountain of debt. It is unclear whether the deal will have a significant impact on the services as they exist and operate now, but AT&T said the new company “will continue to provide a competitive video service with the best content in the class.”
“This agreement aligns with our investment and operational focus on connectivity and content and strategic business that are key to growing our customer relationships through 5G wireless, fiber and HBO Max,” AT&T chief John Stankey said in a statement. statement. “And supports our deliberate commitment to capital allocation to invest in growth areas, to support the dividend at current levels, to focus on debt reduction and to restructure or monetize non-core assets.”
He added: “As the pay-TV industry continues to evolve, the formation of a new TPG entity to operate the US video business separately provides the flexibility and dedicated management focus needed to continue to meet the needs of a high-end customer base. quality and business management for profitability. “
Are you saying that you are restructuring or generating money from non-core assets? I wonder how many WarnerMedia fire sales streaming services at Crunchyroll that we’ll read about in the future.
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