AT&T to sell remaining 70% stake in DirecTV to TPG

Telecom operator AT&T (NYSE:T) has agreed to sell its remaining 70% stake in DirecTV to private equity partner TPG (NASDAQ:TPG), which holds the minority interest, for around $7.6B in cash payments through 2029.

The deal is expected to close in the second half of 2025 and would represent AT&T’s (T) exit from the satellite TV business.

The cash payment of $7.6B from DirecTV and TPG will include $1.7B of pre-tax quarterly distributions in the second half of 2024; $5.4B of after-tax cash distributions and other payments not subject to tax in 2025; and $0.5 billion of final payments in 2029 of after-tax proceeds.

Under the agreement, AT&T will receive from buyer an initial payment of $2B, subject to certain deductions, during 2025, and additional payments from buyer totaling $500M in 2029.

The transaction also contemplates that DirecTV to make a special distribution prior to March 31, 2025, of at least $1.625B that will be paid to the equity holders of DirecTV, of which AT&T (T) would receive around 70%.