AT&T Sells Remaining Stake in DIRECTV to TPG

Rhea-AI Summary

AT&T (NYSE:T) has agreed to sell its remaining 70% stake in DIRECTV to TPG, subject to customary closing conditions. This non-contingent transaction marks the complete divestiture of AT&T's interest in DIRECTV. Over the past three years, AT&T has received $19 billion in cash distributions from its initial transaction with TPG and expects an additional $7.6 billion following this agreement.

The sale aligns with AT&T's strategy to focus on being the leading wireless 5G and fiber connectivity company in America. It also aims to strengthen AT&T's balance sheet by accelerating cash inflows. The transaction is expected to close in the second half of 2025.

Positive

• Sale of remaining 70% stake in DIRECTV to TPG
• Expected additional $7.6 billion in cash payments from the sale
• Strengthening of AT&T's balance sheet through accelerated cash inflows
• Alignment with AT&T's strategy to focus on 5G and fiber connectivity

Negative

• Complete divestiture of DIRECTV, potentially reducing future revenue streams

News Market Reaction

+0.46%

1 alert

+0.46% News Effect

On the day this news was published, T gained 0.46%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

DALLAS, Sept. 30, 2024 /PRNewswire/ -- AT&T (NYSE:T) ("the Company") reached an agreement to sell its remaining stake in DIRECTV to TPG. Under the agreement, the Company will sell its entire 70% stake in a non-contingent transaction subject only to customary closing conditions.

Over the past three years, the Company achieved financial outcomes consistent with its expectations that underpinned its decision to retain a 70% financial interest in DIRECTV. Reported cash distributions at, and since, the closing of its initial transaction with TPG totaled $19 billion and the Company expects to report an additional $7.6 billion of cash payments following this agreement to sell its remaining stake.

This sale allows AT&T to continue to focus on being the leading wireless 5G and fiber connectivity company in America. This transaction also continues to strengthen AT&T's balance sheet by pulling forward cash expected over the next several years.

The Company expects the transaction to close in the second half of 2025.

For more details on the deal, see the 8-K.

About AT&T  

We help more than 100 million U.S. families, friends and neighbors, plus nearly 2.5 million businesses, connect to greater possibility. From the first phone call 140+ years ago to our 5G wireless and multi-gig internet offerings today, we @ATT innovate to improve lives. For more information about AT&T Inc. (NYSE:T), please visit us at about.att.com. Investors can learn more at investors.att.com.

© 2024 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.

 

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SOURCE AT&T

FAQ

What is AT&T (T) selling to TPG?

AT&T (T) is selling its remaining 70% stake in DIRECTV to TPG.

How much cash has AT&T (T) received from its DIRECTV transactions with TPG?

AT&T (T) has received $19 billion in cash distributions from its initial transaction with TPG and expects an additional $7.6 billion from this latest agreement.

When is the AT&T (T) DIRECTV sale to TPG expected to close?

The transaction is expected to close in the second half of 2025.

How does the DIRECTV sale align with AT&T's (T) strategy?

The sale allows AT&T (T) to focus on being the leading wireless 5G and fiber connectivity company in America and strengthens its balance sheet.