AT&T It said on Monday it would sell a 70% stake in satellite TV service DirecTV to private equity firm TPG for $7.6 billion, exiting a business with declining allocations for the telecom operator.
AT&T signed a joint venture agreement with TPG in 2021. TPG contributed approximately US$1.8 billion in cash in exchange for a 30% stake in DirecTV, which was valued at approximately US$16 billion at the time.
The telecommunications company has agreed not to sell its stake in DirecTV for three years, a period that expires on July 31.
The stake sale will allow AT&T to focus on its core wireless and fiber-optic connectivity businesses and help improve its balance sheet.
AT&T said in a filing on Monday that it will receive an upfront payment of $2 billion in 2025 and additional payments through 2029.