No, AT&T no longer holds majority ownership of DirecTV. The telecommunications giant sold its controlling stake in the satellite TV provider as part of its strategy to exit the entertainment business.
The Shift in Ownership
AT&T completed the sale of its majority stake in DirecTV to private equity firm TPG for $7.6 billion. This transaction effectively lowered the curtain on AT&T's significant foray into the entertainment sector, which began with its acquisition of DirecTV years prior.
The deal reshaped DirecTV's ownership structure:
- TPG acquired a majority stake, becoming the controlling owner.
- AT&T retained a minority stake in the newly formed DirecTV entity, but no longer holds the majority or controlling interest.
This strategic move allowed AT&T to streamline its operations and focus on its core telecommunications services, divesting from the entertainment assets that were once central to its diversification efforts.
Key Aspects of the DirecTV Sale
The sale marked a significant pivot for AT&T, signaling its commitment to shedding non-core assets and reducing its substantial debt.
| Aspect | Details |
|---|---|
| Seller | AT&T |
| Buyer | TPG (private equity firm) |
| Asset Sold | Majority stake in DirecTV (including DirecTV, AT&T TV, and U-verse video) |
| Sale Value | $7.6 billion |
| AT&T's Remaining Role | Minority stakeholder; exiting active control of entertainment business |
This transaction underscores a broader industry trend where traditional telecom companies are re-evaluating their expansive media and entertainment holdings to concentrate on broadband and wireless services.
