AT&T has completed the spinoff of DirecTV into a new entity part-owned by private equity firm TPG, capping a costly six-year adventure in the satellite TV business. The new entity, whose financials will no longer be included on the AT&T balance sheet, unveiled new branding and a new home for its internet-delivered TV packages. Later this month, DirecTV Stream will become the umbrella for streaming offerings like the one formerly known as AT&T TV Now (originally DirecTV Now).
AT&T will spin off its video business including DirecTV into a new company in a deal with TPG, which acquired 30% of the new company. The agreement values the forthcoming company, known as New DirecTV, at $16.25 billion. Under the terms of the transaction, New DirecTV will be jointly governed by a board with two representatives from each of AT&T and TPG, as well as a fifth seat for the CEO, which at closing will be Bill Morrow, CEO of AT&T’s U.S. video unit. Following the close of the transaction, AT&T will own 70% of the common equity and TPG will own 30%.
AT&T is nearing a $15 billion deal to sell a substantial minority stake in its DirecTV, AT&T TV Now and U-Verse business to private equity firm TPG, according to people familiar with the matter. A deal could be announced as soon as this week, said the people, who asked not to be named because the discussions are private.
Private equity firm TPG has entered into exclusive talks to acquire a minority stake in AT&T’s satellite TV division, DirecTV, in a deal that would allow the U.S. wireless carrier to trim its net debt of close to $150 billion, people familiar with the matter say.
Private equity firm TPG is exploring a sale of Astound that could value the owner of a U.S. network of regional cable TV and internet providers at more than $8 billion, including debt, according to people familiar with the matter. The potential sale would come as cable operators have seen their fortunes buoyed by consumers requiring more internet bandwidth, as they stay home to work and be entertained during the COVID-19 pandemic.
The private equity firm’s managing partner is among 33 parents charged in a scheme to fraudulently get their children into college.
Exclusives
Vice Media’s valuation is now up to $5.7 billion, CEO Shane Smith told CNBC, after his company snagged a $450 million investment from asset firm TPG.
Private-equity firm TPG has agreed to buy cable-television providers RCN and Grande Communications for about $2.25 billion including debt, according to people familiar with the matter, in a bet that demand for new broadband services will fuel growth in the businesses. Google Capital, Alphabet Inc.’s growth-equity investment fund, is taking a minority stake in the companies, which are currently owned by private-equity firm Abry Partners, some of the people said.
