AT&T is finalizing the merger of DirecTV with its own company


After AT&T, DirecTV is again its own company closed contract with the private equity firm TPG, which he first announced back in February. Under their agreement, TPG would own 30 percent of the spinoff, while the mobile giant would retain 70 percent of the ownership. DirecTV, as its own company, will no longer operate under AT&T, but will own and operate AT&T TV and U-verse video services under a single brand known as “DirecTV Stream“debuts later this month. The new spinoff says users won’t even feel the transition: streaming services will still be available, and subscribers won’t be blinded by hidden fees.

AT&T received $ 7.1 billion in cash for the sale, which is only a small fraction of the $ 49 billion it originally paid to buy DirecTV in 2015. At the time, former AT&T CEO Randall Stephenson he said Combining DirecTV with AT&T “it’s all about giving users more choice for great video entertainment integrated with mobile and high-speed Internet service.” According to Los Angeles Times, AT&T has since lost 40 percent of its original DirecTV subscribers, and in the second quarter of 2021. DirecTV reported having 15.4 million premium video subscribers.

The telecommunications giant was I’m trying to unload DirecTV has been around since at least 2019, but hasn’t announced anything concrete until early this year. This agreement does not include the HBO Max streaming service, which will be part of a separate company WarnerMedia spinoff. In May, AT&T announced a $ 43 billion contract that would merge his WarnerMedia division with Discovery. It is expected to close in mid-2022, four years after AT&T finalized Time Warner’s $ 85 billion acquisition. Both that deal and this withdrawal of DirecTV will help AT&T’s debt reduction efforts. As Rock notes, in recent years, several steps have been taken, including the sale of assets, to reduce debts it has acquired due to massive multimedia acquisitions.

All products recommended by Engadget have been selected by our editorial team, independent of our parent company. Some of our stories involve partnerships. If you purchase something through one of these links, we can earn a commission for affiliates.

Source link


Please enter your comment!
Please enter your name here