AT&T Likely to Sell Satellite TV Subsidiary DirecTV to Private Equity Firm TPG

[Image source= Reuters Yonhap News]

[Asia Economy Reporter Park Byung-hee] Bloomberg News reported on the 23rd (local time), citing sources, that the major U.S. telecommunications company AT&T is likely to sell its satellite broadcasting subsidiary DirecTV to the private equity firm TPG Capital.

An anonymous source stated that AT&T and TPG Capital may officially announce the agreement this week or next week. However, the source also mentioned that there is a possibility that the negotiations could fall through.

If an agreement is reached, AT&T is expected to sell DirecTV for approximately $15 billion.

AT&T acquired DirecTV in 2014 by investing $48.5 billion. However, with the growth of streaming service providers such as Netflix, the pay-TV market has shrunk, turning DirecTV into a burden.

Hedge fund Elliott Investment Management demanded that AT&T sell DirecTV in 2019. Bloomberg reported that at that time, DirecTV also considered merging with competitor DISH Network, but concerns over antitrust violations were raised.

As DirecTV came onto the market, Bloomberg reported that Churchill Capital, a special purpose acquisition company (SPAC) founded by former Citigroup financier Michael Klein, and asset management firm Apollo Global Management showed interest.

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