Report: AT&T Renews Efforts to Sell DIRECTV

For those with an extra few billion dollars in their pockets and a hankering to own a big satellite broadcaster, it seems that DIRECTV is again on the market. Citing people familiar with the matter, The Wall Street Journal on Friday reported that owner AT&T (NYSE: T) is apparently once more attempting to sell the business.

According to the article's sources, the company and advisor Goldman Sachs have held discussions with private equity firms on a sale of at least 50% of the unit. Among the interested parties are alternative-investment specialist Apollo Global Management and privately held Platinum Equity.

Other would-be investors that were approached declined to submit bids for DIRECTV. None of these formerly potential suitors were named.

Satellite dish silhouetted against the horizon in the background.

Image source: Getty Images.

All talks are in early stages. There's no guarantee a sale will be agreed upon, the article's sources stressed. No potential price or range was identified for DIRECTV, nor was there any indication of when a sale might take place.

Satellite was once the cutting edge of the broadcasting industry, but its position has been eroded by cord-cutting as customers gravitate to video streaming services.

AT&T is facing pressure from within to divest DIRECTV, one of several assets in its sizable entertainment portfolio. Last September, hedge fund Elliott Management divulged that it bought a $3.2 stake in the telecom giant and then immediately called for it to divest assets it considered insufficiently productive, including DIRECTV. Since then, AT&T has considered several ways to unload the unit, but none has yet come to fruition.

AT&T, Elliott Management, Goldman Sachs, and Apollo have not yet commented on the Journal article.

10 stocks we like better than AT&T
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and AT&T wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks


*Stock Advisor returns as of August 1, 2020


Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.