DirecTV to Become Standalone Company Through AT&T, TPG Capital Pact

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AT&T has set a deal with TPG Capital that calls for the struggling satellite TV provider DirecTV to become a standalone company in which TPG would own a 30% stake. The sides have been in talks …

The sides have been in talks for months as AT&T has sought to find a solution to the problem of DirecTV’s subscriber losses dragging down the company’s overall results. The pact with TPG implies an enterprise value of $16.25 billion, a far cry from the $48 billion that AT&T paid for DirecTV in 2015.

“This agreement aligns with our investment and operational focus on connectivity and content, and the strategic businesses that are key to growing our customer relationships across 5G wireless, fiber and HBO Max. And it supports our deliberate capital allocation commitment to invest in growth areas, sustain the dividend at current levels, focus on debt reduction and restructure or monetize non-core assets,” said AT&T CEO John Stankey.

 

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