AT&T is turning DirecTV into a standalone company

AT&T just announced an agreement with private equity firm TPG that will turn DirecTV into a standalone company, albeit one that’s still majority owned by the telecom giant.
Specifically, AT&T says it will own 70% of the new company, while TPG owns 30%. This transaction values DirecTV at $16.25 billion — a dramatic decline from the $48.5 billion that AT&T paid to acquire the pay TV provider in 2015, part of a wave of telecom-media acquisitions. (Verizon owns TechCrunch thanks to its acquisition of AOL.)
Even with new offerings like AT&T TV (which will be part of the standalone company, along with the DirecTV and U-Verse services), pay TV subscriptions have been declining, with AT&T reporting a net loss of 617,000 premium video subscribers in its most recent quarter. AT&T is trying to point out the positive trends in the numbers by noting that “it hit its peak level of subscriber losses in 2019” and that “premium video net losses had improved sequentially for five straight quarters.”
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