AT&T is nearing a deal to promote a considerable minority stake in its DirecTV, AT&T TV Now and U-Verse enterprise to non-public fairness agency TPG, in keeping with folks accustomed to the matter.
A deal might be introduced as quickly as this week, stated the folks, who requested to not be named as a result of the discussions are personal.
The deal will worth the AT&T companies round at $15 billion. AT&T acquired DirecTV in 2015 for $48.5 billion ($67 billion with debt).
AT&T has moved away from conventional pay TV up to now a number of years because it has centered its media technique round HBO Max. DirecTV, U-Verse and AT&T TV Now are primarily based round a linear TV enterprise of broadcast and cable networks that’s shedding hundreds of thousands of subscribers annually.
AT&T misplaced practically 3 million video clients final 12 months and took a $15.5 billion impairment cost as a result of firm’s reevaluation of its home video enterprise.
A sale will present AT&T will more money to pay down its debt, which stands at about $150 billion and has persistently declined by the previous 12 months.
Hedge fund Elliott Administration took an activist stake in AT&T in September 2019. In a letter to administration, Elliott requested AT&T to focus its strategic operations whereas contemplating divesting noncore property — together with DirecTV. AT&T CEO John Stankey has resisted a full sale.
TPG declined to remark. AT&T couldn’t be instantly reached for remark.
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