• Loading stock data...
Thursday, December 5, 2024
Tune in on Dec. 11 at 1:05 p.m. ET for our last Future of Sports virtual summit of the year – Future of Sports: Marketing! Register Now

DirecTV Becomes Standalone Company After AT&T Spinoff

  • AT&T completed its spinoff of DirecTV, as it continues to reorganize.
  • Private equity firm TPG is taking a 30% stake in DirecTV.
Tim Heitman-USA TODAY Sports/Design: Alex Brooks

AT&T completed a big component of its wholesale restructuring by finalizing the spinoff of DirecTV, which returned to being a separate company on Monday.

The new entity combines DirecTV, AT&T, and U-verse to offer a wide range of channels including ESPN, Fox Sports, MLB Network, NBA TV, TBS, and TNT

The latter two’s NBA broadcasts were key to WarnerMedia’s strong second quarter. AT&T is in the process of spinning off WarnerMedia in a $43 billion merger with Discovery.

  • AT&T received $7.1 billion in cash from the DirecTV spinoff, including $1.8 billion from private equity firm TPG. TPG took a 30% stake in the new DirecTV. AT&T owns the other 70%.
  • DirecTV borrowed $5.8 billion as part of the transaction. Previous reports said that the company was selling $3.1 billion in junk bonds to facilitate the spinoff.

The move ends a saga that began with AT&T’s $48 billion acquisition of DirecTV in 2015. Since then, the service lost 40.8% of its subscriber base, which dropped from 26 million six years ago to 15.4 million today.

AT&T is already making moves to establish a different role in the content provider space. In July, it inked a deal worth at least $5 billion to be Dish Network’s primary network services provider.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Feb 11, 2024; Paradise, Nevada, USA; Elon Musk looks on before Super Bowl LVIII between the San Francisco 49ers and the Kansas City Chiefs at Allegiant Stadium.

Can Elon Musk’s X Fix Its Rampant Fake Sports News Problem?

Little is known about how X will enforce its new policy aimed at parody accounts.
Oct 1, 2024; Brooklyn, New York, USA; Las Vegas Aces guard Kelsey Plum (10) drives past New York Liberty forwards Kayla Thornton (5) and Betnijah Laney-Hamilton (44) during game two of the 2024 WNBA Semi-finals at Barclays Center.

Kelsey Plum Backs Out of Unrivaled

She’s skipping the new league’s season, along with Caitlin Clark.
Nov 26, 2024; Las Vegas, Nevada, USA; Oregon Ducks guard Keeshawn Barthelemy (9) approaches Texas A&M Aggies guard CJ Wilcher (10) during the first half at MGM Grand Garden Arena. Mandatory

Is This $9 Million Basketball Tournament the ‘Future of College Sports’?

NIL opportunities for players are scheduled throughout the six-day tournament.

DirecTV-Dish Deal Is Dead, Spelling More Trouble for Pay TV

Bondholder objections undo an agreement to create the largest U.S. pay-TV distributor.

Featured Today

Dec 18, 2022; Lusail, Qatar; FIFA president Gianni Infantino claps during the awards ceremony after the 2022 World Cup final between Argentina and France at Lusail Stadium.

FIFA Wants More Matches. Resistance Is Growing Inside the Global Soccer World

Resentment and frustration over expanded schedules is nearing a breaking point.
November 30, 2024

U.S. Investors Are Gunning for England’s Small Soccer Clubs

Is another Hollywood-like success story possible among the U.K.’s smallest clubs?
Nov 1, 2024; Boise, Idaho, USA; Boise State Broncos running back Ashton Jeanty (2) leads the team onto the field prior to the first quarter against the San Diego State Aztecs at Albertsons Stadium.
November 29, 2024

Schools Are Scrambling to Prepare for the NCAA Revenue-Sharing Era

In the post–House v. NCAA world, “everyone’s kind of on their own.”
Nov 4, 2024; Kansas City, Missouri, USA; Recording artist Taylor Swift arrives prior to a game between the Tampa Bay Buccaneers and the Kansas City Chiefs at GEHA Field at Arrowhead Stadium.
November 29, 2024

The PWHL Could Be Inviting a Date With Taylor Swift’s Legal Team

The Toronto Sceptres may have opened a Pandora’s box of trademark issues.
exclusive

Talor Gooch Using LIV Golf Fortune to Start Building Sports Empire

The golfer has made more than $43 million individually on LIV.
November 13, 2024

Why Liberty Media Spun Off Assets, Shook Up Leadership

Longtime CEO Greg Maffei is stepping down at the end of the year.
December 4, 2024

U.S. Firm Makes $310M Bet on Soccer by Forming Superagency

The U.S.-based investment company makes a significant play in international soccer.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
Oct 27, 2024; Seattle, Washington, USA; Buffalo Bills quarterback Josh Allen (17) passes against the Seattle Seahawks during the second quarter at Lumen Field.
October 30, 2024

Buffalo Bills in Talks to Sell Stake to PE Firm Arctos: Report

Arctos already has a slice of Paris Saint-Germain and the PGA Tour, among other assets.
Jul 7, 2021; Tampa, Florida, USA; Tampa Bay Lightning owner Jeff Vinik hoists the Stanley Cup after the Lightning defeated the Montreal Canadiens 1-0 in game five to win the 2021 Stanley Cup Final at Amalie Arena.
October 25, 2024

Lightning Sell at $1.8B Valuation, Nearly Double Prior NHL Record

The Lightning unveiled a multistep and multiyear sale process.
May 24, 2024; Minneapolis, Minnesota, USA; Dallas Mavericks owner Mark Cuban celebrates after defeating the Minnesota Timberwolves in game two of the western conference finals for the 2024 NBA playoffs at Target Center.
October 9, 2024

Why Mark Cuban Sold the Dallas Mavericks When He Did

Cuban sold his majority stake to the Adelson family in December 2023.
Young fans look over Michigan State sports equipment on display during the Spring Showcase on Saturday, April 20, 2024, at Spartan Stadium in East Lansing.
October 2, 2024

Private Equity Firms Buy Rival Hockey Brands CCM and Bauer

Both brands have been around for decades and changed ownership in the same week.