DirecTV has completed its spinoff from AT&T, with the telecom giant on Monday announcing it will retain a 70% stake in the company and private equity firm, TPG Capital, will grab the other 30%.
The deal, first announced back in February, comes six years after AT&T completed its acquisition of DirecTV. Moving forward, the standalone DirecTV will include its satellite service, AT&T TV — which will be rebranded as DirecTV Stream — and U-Verse TV. Altogether, the three services had 15.4 million subscribers by the end of the second quarter.
“This is a watershed moment for DIRECTV as we return to a singular focus on providing a stellar video experience,” DirecTV CEO Bill Morrow said in a statement. “Building on our recent momentum, we are well-positioned to bring unparalleled choice and value to all of our customers under one iconic brand, whether they beam it or stream it.”
AT&T received $7.8 billion in the deal, which valued DirecTV at $16.25 billion — or about 30% of the $49 billion the company paid for the satellite service back in 2015.
DirecTV’s spinoff follows AT&T’s recent Q2 earnings report, in which the company said it lost 473,000 premium video subscribers. Over the next few months, DirecTV, in its press release announcing the deal, said customers can expect to see a “bold new look” featured across its video services.
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