FX.co ★ TPG To Buy Out DIRECTV From AT&T

TPG Inc. (TPG), a renowned firm specializing in alternative asset management, announced on Monday that it has entered into an agreement to acquire the remaining 70 percent stake in AT&T's DIRECTV. Under the terms of the agreement, AT&T is set to receive approximately $7.6 billion in cash from DIRECTV by 2029.

The transaction details include an initial payment of $2.0 billion from TPG to AT&T in 2025, with additional payments amounting to $500 million slated for 2029.

TPG confirmed that it will channel its investment in DIRECTV through TPG Capital, its U.S. and European private equity division.

In addition, DIRECTV has announced plans for a special distribution amounting to at least $1.625 billion to its equity holders by March 31, 2025.

Upon closing, expected in the latter half of 2025, DIRECTV will continue to be managed by its existing leadership team, including CEO Bill Morrow.

Since 2021, DIRECTV has been operating as a joint venture between AT&T and TPG, encompassing DIRECTV, DIRECTV STREAM, and U-verse video services, all of which were previously owned and operated by AT&T.

"This transaction will bolster TPG's existing partnership with DIRECTV. TPG's established expertise in the internet, digital media, and communications sectors will be instrumental in supporting DIRECTV's growth of its next-generation streaming service, which boasts millions of subscribers and generates multi-billion-dollar revenues annually," TPG stated in a press release.