Deals
AT&T Exploring Options for DirecTV as Pay-TV Subscriptions Continue Decline
- Telecoms giant majority owns DirecTV with private equity TPG
- Declining pay-TV customer base has cut into AT&T’s cash flow
AT&T Inc. has begun to explore options for its 70% stake in DirecTV as it approaches the end of an agreement under which it can legally sell its interest in America’s third-largest pay-TV provider.
Among AT&T’s options are: a dividend recapitalization, adding a new investor, or selling the stake and exiting the venture as early as August 2024, according to people familiar with the discussions, who asked not to be identified because the discussions aren’t public. A deal isn’t imminent and discussions are still in the early stages, they said. The current ownership structure may still continue as is.