AT&T eventually split DirecTV into its own company

After AT&T, DirecTV is now its own company again closure The transaction with private equity firm TPG, which was first announced in February. According to their agreement, TPG will own 30% of the spin-off shares, while the mobile giant will retain 70% of the ownership. As its own company, DirecTV will no longer operate under AT&T, but will operate under a company called “Direct TV streaming“Debut later this month. The new derivative product means that customers won’t even feel the shift: streaming services will continue to be available, and subscribers will not be deceived by hidden fees.

AT&T received US$7.1 billion in cash for this sale, which is only a small part of the US$49 billion it initially paid for DirecTV in 2015.At the time, former AT&T CEO Randall Stephenson Say Combining DirecTV with AT&T, “is to provide customers with more choices to enjoy wonderful video entertainment combined with mobile and high-speed Internet services.” According to Los Angeles TimesSince then, AT&T has lost 40% of original DirecTV subscribers, and in the second quarter of 2021, DirecTV reported 15.4 million paid video subscribers.

The telecom giant has Trying to uninstall DirecTV started at least in 2019, but did not announce any specific news until earlier this year.The transaction does not include HBO Max streaming service, which will become an independent part of the company WarnerMedia spin-off. In May, AT&T Announce A $43 billion transaction will merge its WarnerMedia division with Discovery. It is expected to close in the middle of 2022, which is four years after AT&T completed its $85 billion acquisition of Time Warner. This transaction and the spin-off of DirecTV will help AT&T’s debt reduction work.As deadline It is worth noting that in the past few years, it has adopted a number of measures, including the sale of assets, to reduce debts obtained from large-scale acquisitions of multimedia.

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