AT&T nears cope with TPG to promote giant minority stake in DirecTV, U-verse at $15 billion valuation

AT&T is nearing a deal to promote a considerable minority stake in its DirecTV, AT&T TV Now and U-Verse enterprise to private-equity agency TPG, based on folks conversant in the matter.

A deal may very well 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 prior 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 almost 3 million video prospects final yr and took a $15.5 billion impairment cost as a result of firm’s re-evaluation of its home video enterprise.

A sale will present AT&T will extra money to pay down its debt, which stands at about $150 billion and has persistently declined via the previous yr.

Hedge fund Elliott Administration took an activist stake in AT&T in Sept. 2019. In a letter to administration, Elliott requested AT&T to focus its strategic operations whereas contemplating divesting non-core belongings — 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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