AT&T announced earlier this year that it will combine its video capabilities with DirecTV, AT&T TV and U-verse new try it is jointly managed by the private equity firm TPG Capital. The deal is finally complete and the services now operate as a single company called DirecTV.
As announced earlier this year, when the company initially announced its intention to dismantle its struggling DirecTV business, AT&T will retain a 70 percent stake in the company and TPG a 30 percent stake. The telecom giant said the deal, for which it received $ 7.1 billion in cash, would help pay it back huge debtIn anticipation of the company, it can stop the bleeding by the end of 2023.
Part of this debt is owed to AT&T acquisition of the original DirecTV in 2015, when AT&T paid $ 48.5 billion ($ 67 billion in debt) to acquire the business. Claims that this business decision has failed is, to put it mildly, like DirecTV leaked customers for years before the TPG transaction.
When the TPG deal was announced in February, AT&T boss John Stankey said the company plans to focus specifically on “connectivity and content,” including 5G wireless and fiber, as well as its service HBO Max. Recently, however, AT&T revised strategy is to focus on its core business and, as Stankey said recently, “free up media resources”.
The agreement with TPG does not include any of WarnerMedia’s various resources, including its party tent streaming service HBO Max, as they will be transferred to Discovery instead. (WarnerMedia and Discovery are currently Waiting for approval due to the merger of two companies.)
But trade contain existing DirecTV content stores such as the NFL Sunday Ticket. AT&T added that DirecTV “will continue to offer HBO Max service to subscribers, as well as all wireless or broadband services and related customer discounts.”