AT&T poised to sell stake in DirecTV to TPG: reports

AT&T poised to sell stake in DirecTV to TPG: reports

AT&T Inc. is close to a deal to sell a substantial stake of DirecTV to private equity firm TPG, according to reports Tuesday.

CNBC and Bloomberg News reported a deal could be announced this week or next, valuing the DirecTV business, which includes U-Verse and AT&T TV Now, at around $15 billion. That’s just a fraction of the $49 billion that AT&T paid for DirecTV in 2015.

AT&T booked a $15.5 billion write-down on its floundering pay-TV business in January. When it reported fourth-quarter earnings last month, AT&T disclosed it had shed around 3 million subscribers last year across its DirecTV and U-verse platforms, sparking speculation that it would seek to sell the unit.

AT&T Chief Executive Officer John Stankey has reportedly been looking to cut loose underperforming assets to pay down debt, which totals around $150 billion.

AT&T shares
T,
-0.48%
are down about 22% over the past 12 months, compared to a 24% gain by the S&P 500
SPX,
+0.13%
in that time.

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About Albert Kerley

Albert has handled various businesses throughout his career and has a deep domain knowledge. He founded News Conduct in an attempt to bring the latest news to its readers. He is glued to the stock market most of the times and just loves being in touch with the developments in the business world.

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