AT&T sells DirecTV stake to TPG for $7.6bn

30th Sep 2024 11:34

(Sharecast News) - American telecoms giant AT&T is to sell its 70% stake in satellite television provider DirecTV to private-equity firm TPG for a total of $7.6bn.

AT&T, which purchased DirecTV in 2015 before selling a 30% shareholding to TPG in 2021, said in a statement that its investment has achieved as expected over the past three years.

"This sale allows AT&T to continue to focus on being the leading wireless 5G and fiber connectivity company in America. This transaction also continues to strengthen AT&T's balance sheet by pulling forward cash expected over the next several years," the telecoms group said.

Reported cash distributions since AT&T's initial transaction with TPG have totalled $19bn, not including Monday's disposal. The deal includes an initial payment of $2.0bn to AT&T during 2025.

In a separate statement, DirecTV's chief executive Bill Morrow said the deal was "the right next step for DIRECTV as we advance our vision and continue to evolve our product to offer consumers the broadest array of content".