AT&T's DirecTV to become standalone video business

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AT&T Inc's (T.N) satellite television provider, DirecTV, will become a standalone video business as part of a deal between the wireless service provider and buyout firm TPG Capital.

The move will boost the TV operator's position, which like its peers, had been losing subscribers to video streaming services such as Netflix, Prime Video and Apple Inc'sDirecTV said as a part of the deal, customers who were previously AT&T satellite, streaming or IP video subscribers will get to keep their video service and any bundled wireless or internet services, including HBO Max.

AT&T in February agreed to sell about a third of its stake in DirecTV to TPG Capital in a deal that valued the business at $16.25 billion, well below the $68 billion AT&T had paid for the asset less than six years ago. AT&T has been under pressure to trim its swelling debt pile as it invests more in 5G and other wireless services.Reporting by Tiyashi Datta in Bengaluru; Editing by Shinjini GanguliSubscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.

 

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