AT&T has accomplished its spinoff of struggling satellite tv for pc TV supplier DirecTV in a deal backed by private-equity agency TPG.
Earlier this yr, the telecom large announced the sale, which valued DirecTV and different satellite tv for pc properties at $16.25 billion — a fraction of the $48.5 billion AT&T shelled out for it in 2015 below former chief government Randall Stephenson.
Below the deal phrases, AT&T offered a 30 p.c stake in DirecTV, AT&T TV and its U-Verse to TPG in alternate for $1.8 billion in money, making DirecTV a standalone firm. AT&T nonetheless owns a 70 p.c stake of the satellite tv for pc TV agency.
On Monday, DirecTV CEO Invoice Morrow stated the brand new firm may have a “singular deal with video,” including that it’s “effectively positioned to convey unparalleled selection and worth to all of our prospects below one iconic model whether or not they beam it or stream it.”
The CEO stated his agency will deal with rising each its legacy satellite tv for pc and streaming companies. The brand new firm will unify its streaming efforts below DirecTV Stream, which might be accessible by DirecTV’s streaming field.
DirecTV stated it additionally plans to model itself as a haven for sports activities followers, highlighting its supply of dwell sports activities in 4K HDR, and its unique rights to NFL Sunday Ticket, the out-of-market NFL streaming providing which is anticipated to return up for renewal within the coming months.
The completion of the DirecTV deal marks the top of a flurry of dealmaking by mum or dad firm, AT&T, which below CEO John Stankey, has unwound a number of non-core belongings, so as to deal with its core wi-fi enterprise.
In December, AT&T sold its animé-focused streamer Crunchyroll to Sony for $1.2 billion, and in Could it struck a deal to spinoff WarnerMedia in a $43 billion merger with Discovery.
https://nypost.com/2021/08/03/att-completes-spinoff-of-its-shrinking-directv-unit/ | AT&T completes spinoff of its shrinking DirecTV unit