Under the agreement, AT&T and TPG will form a new entity called DirectTV that will own and operate the company's DirectTV, AT&T TV and U-verse video services. Bill Morrow, CEO of AT&T's U.S. video unit, was named as the new company's CEO.
The transaction implies an enterprise value for the new company of $16.25 billion, according to the company. AT&T acquired DirecTV for $48.5 billion in 2015 and hoped to pair the national pay-TV company with its wireless service to offer a discounted bundle to customers. Digital distribution of video has supplanted satellite in recent years, causing DirecTV's value to plummet and AT&T to reposition its strategy around HBO Max, its flagship streaming video service.
Following the close of the transaction, AT&T will own 70% of the common equity and TPG will own 30%. The new company will be jointly governed by a board with two representatives from each of AT&T and TPG, as well as Morrow, the company said.on Tuesday. AT&T's stock was up more than 1% in after-hours trading.
Hedge fund Elliott Management took an activist stake in AT&T in September 2019. In a letter to management, Elliott asked AT&T to focus its strategic operations while considering divesting noncore assets — including DirecTV. DirecTV, U-Verse and AT&T TV Now are based around a linear TV business of broadcast and cable networks that is losing millions of subscribers each year.
at last
As a public library is, these cable, media, internet services should be owned by their consumers. So should all utilities be consumer owned.
What does it do to packaged iPhone discount packages?
New company worth 1/4 of original deal. youch
Will this lead to a stock split, or a spin where current stockholders get shares of the new company?
I guess its good my at&t account never merged with my direct tv account
a good short
profgalloway ^ You called it first... but a little twist in there.