TPG To Buy Out DIRECTV From AT&T
(RTTNews) - TPG Inc. (TPG), an alternative asset management firm, Monday said it has signed an agreement to acquire its remaining 70 percent stake in AT&T's DIRECTV. AT&T is expected to receive about $7.6 billion in cash from DIRECTV through 2029.
As per the deal, TPG will make an initial payment of $2.0 billion to AT&T during 2025 and additional payments of $500 million in 2029.
TPG said it will invest in DIRECTV through TPG Capital, the firm's U.S. and European private equity platform.
DIRECTV also plans to make a special distribution of at least $1.625 billion to its equity holders, before March 31, 2025.
Upon completion of the transaction, which is expected in the second half of 2025, DIRECTV will continue to be led by its current management team, including CEO, Bill Morrow.
Since 2021, DIRECTV has operated as a joint venture between AT&T and TPG consisting of DIRECTV, DIRECTV STREAM and U-verse video services previously owned and operated by AT&T.
"This transaction will strengthen TPG's existing partnership with DIRECTV, and TPG's proven expertise in the internet, digital media and communications sectors 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," TPG said in a statement.
