AT&T Unloads DirecTV Stake in $7.6 Billion Deal; Shares Rise

AT&T, a telecommunications giant, has agreed to sell its remaining 70% stake in DirecTV to private equity firm TPG in a deal worth $7.6 billion. The transaction, which is expected to close in the second half of 2025, will allow AT&T to focus on its core wireless and fiber connectivity businesses while strengthening its balance sheet.

The deal, announced on Monday, September 30, 2024, comes after AT&T agreed not to sell its stake in DirecTV for a three-year period, which expired on July 31, 2024. The telecom company had initially signed a joint-venture agreement with TPG in 2021, in which TPG contributed about $1.8 billion in cash for a 30% stake in DirecTV, valued at about $16 billion at the time.


AT&T will receive an initial payment of $2 billion in 2025, with additional payments through 2029. The company expects to report an additional $7.6 billion of cash payments following this agreement. The sale will enable AT&T to reinvest the proceeds in its core wireless and fiber connectivity businesses, driving growth and improving its financial performance.

The divestment of DirecTV is a strategic move for AT&T, allowing it to concentrate on its core services and enhance its competitive position in the market. By focusing on wireless and fiber connectivity, AT&T can leverage its strengths in these areas to better serve its customers and generate revenue. Additionally, the transaction will provide AT&T with a stronger balance sheet, enabling it to invest in new technologies and innovations.


The acquisition of DirecTV by TPG aligns with the private equity firm's long-term investment strategy in the content distribution sector. TPG's expertise in innovative next-generation streaming services will support DirecTV's efforts to grow its next-generation streaming service, which has millions of subscribers and delivers multi-billion dollars of revenue annually. The deal will also strengthen TPG's partnership with DirecTV, enabling it to provide bespoke solutions to corporate partners in the telecommunications industry.

In conclusion, AT&T's sale of its remaining stake in DirecTV to TPG is a strategic move that will allow the telecom company to focus on its core wireless and fiber connectivity businesses. The transaction will strengthen AT&T's balance sheet and enable it to reinvest the proceeds in its core services, driving growth and enhancing its competitive position in the market. Meanwhile, TPG's acquisition of DirecTV aligns with its long-term investment strategy in the content distribution sector, providing opportunities for growth and innovation.