AT&T netted $7.1 billion after completing its latest move to refocus on core businesses, spinning out its DirecTV entertainment unit into a new company in collaboration with investment group TPG Capital.
The US operator explained in a statement the move contributes to a broader debt reduction strategy covering the period to end-2023. Around $195 million of video business debt was transferred in the DirecTV transaction, as the operator edges closer to completing several deals involving its media units.
AT&T holds a 70 per cent stake in the new DirecTV business and TPG Capital the remaining 30 per cent after contributing around $1.8 billion in cash.
In addition to maintaining current DirecTV content, the new company also owns and operates AT&T TV and U-verse video services. But WarnerMedia’s HBO Max streaming service and regional sports networks are not included, with these part of a separate deal involving Discovery.
AT&T’s video chief Bill Morrow heads the new DirecTV board, alongside the operator’s SVP of corporate strategy and development Steve McGaw, and consumer CEO Thaddeus Arroyo. TPG Capital partners David Trujillo and John Flynn are also on-board.Subscribe to our daily newsletter Back