AT&T Sells Remaining Stake in DirecTV to TPG for $7.6 Billion; Shares Rise

AT&T Inc. has announced its plan to divest its 70% stake in satellite TV provider DirecTV to private equity firm TPG for $7.6 billion, signaling the telecom giant’s exit from a sector that has experienced declining returns.

In premarket trading, the company’s shares rose nearly 1%.

Back in 2021, AT&T formed a joint venture with TPG, with the latter investing around $1.8 billion for a 30% ownership in DirecTV, which was then valued at approximately $16 billion.

AT&T had previously committed to maintaining its ownership in DirecTV for three years, a restriction that expired on July 31.

The sale is part of AT&T’s strategy to concentrate on its core operations, such as wireless and fiber connectivity, while also enhancing its financial stability.

“This sale enables AT&T to focus on leading the wireless 5G and fiber connectivity market in America. It also strengthens our balance sheet by accelerating cash flow anticipated over the coming years,” the company stated in its press release.

Under the terms outlined in a recent regulatory filing, AT&T is set to receive an initial payment of $2 billion in 2025, with additional payments extending to 2029.

The transaction is expected to be finalized in the second half of 2025.