AT&T Sells Majority Stake in DirecTV to Focus on Core Connectivity Business
Oct/01/2024
AT&T is set to divest its remaining 70% stake in DirecTV to TPG for $7.6 billion, marking the company's exit from an industry that has yielded diminishing returns in recent years. Following this transaction, DirecTV will acquire Dish Network, including its Dish TV and Sling TV services from EchoStar, creating a media giant with a combined customer base of 20 million. Since purchasing DirecTV in 2015 and later forming a joint venture with TPG in 2021, AT&T has shifted its focus back to its primary strengths in wireless and fiber connectivity. This move is expected to bolster AT&T's financial performance, which saw a revenue increase to $122 billion in 2024, making it the second-largest network operator in the U.S. Following the spin-off of WarnerMedia, AT&T rebounded from revenue declines, reporting a robust net income of $15.6 billion in 2023. As it continues to expand its 5G network, covering approximately 30% of the U.S., and plans to launch direct-to-cell satellite services in 2025, AT&T is reinforcing its commitment to next-generation connectivity.
