AT&T is now negotiating exclusively with equity firm TPG to purchase a minority or majority stake in DIRECTV, according to reports from Reuters and Bloomberg.
Several publications, including The Wall Street Journal and the New York Post, previously reported that AT&T was seeking multiple bids to purchase DIRECTV. But the new reports say equity firms Apollo Global and Churchill Capital, which were thought to be interested, are no longer involved in the bidding process.
AT&T wants to sell at least a portion of DIRECTV to eliminate debt and, possibly, turn the satellite TV operations over to another company. DIRECTV has lost roughly six million subscribers since AT&T purchased it in 2015 and subscriber defections are expected to continue.
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“The exact price TPG is willing to pay could not be learned, but sources said the deal could value DirecTV at more than $15 billion. Were the negotiations to conclude successfully, a deal could be announced in the coming weeks, added the sources, who requested anonymity because the matter is confidential,” Reuters writes.
Bloomberg’s report echoes that AT&T is now negotiating exclusively with TPG, but sounds a stronger note of caution:
“A potential deal is weeks away, and the talks could still fall apart…and the agreement being discussed is highly structured and would include preferred stock.”
Both news services said AT&T and TPG refused to comment.
TPG, which is headquartered in San Francisco and Fort Worth, Texas, invests in struggling companies, allowing them to continue building their businesses in tough times. However, the satellite TV industry is on the decline so it remains to be seen how TPG’s financing would change how DIRECTV is run. It’s possible that TPG would expect to turn a profit when DIRECTV is ultimately sold to satellite rival Dish, a scenario that Dish Chairman Charlie Ergen has called “inevitable.”
Previous news reports have said AT&T is leery of selling DIRECTV to Dish now because federal regulators could nix the deal because it would eliminate competition, particularly in rural areas where residents rely on satellite service due to limited Internet access. A Dish-DIRECTV merger would likely have more success getting approved in a few years when new technologies, such as 5G, are readily available in those areas.
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If ATT would lower their price to only what they need to break even, and eliminate the 2 year contract, or keep the price the same in year 2, they’d get those 6 million back and then some.
Amen! Couldn’t have said it better.
I’m leaving in June when my 2-year contract is up. Back to the OTA antenna and some internet streaming .
No need to wait out your “contract” !! THEY CAN NOT COLLECT on it in ANY WAY !! JUST CANCEL the card you auto bill to and tell them to F off !! EZ as that !!
LISTEN UP ALL..
DESPERATE to keepp the INVESTERS rorm FLEEING and promising the world.
ERGAN does NOT…REPEAT…NOT have to “BUY” DIRECTV !! (RE READ THAT !!)
ALL “Charlie” has to do is WAIT UNTIL DIRECTV becomes INSOLVENT and WHILE he is DOING that, the “used to be subs at DIRECTV” are BUYING DISH and there is NOTHING the “STANKERSORE” or ANY on the OLD TROLL BOARD of soon to be DEAD “directors” at AT&(soon to be BANKRUPT “T”) AT&T can do about it.
CHARLIE does NOT HAVE to BUY anything AND HE above ALL FULL WELL KNOWS this and he is (along with FAR FAR SUPERIOR COMPETITORS, shoveling DIRT on the SOON to be GONE AT&T because AT&T is INCOMPATENT and NO ONE wants to WORKwithr them ANY LONGER…RE READ ALL OF THIS !!
AT&T is DEAD…
Apollo Global and Churchill Capital BAILED because THE STAKNER is a MORON and they would NOT “invest” in the looser…
THE CEO of TPG did NOT get there buying GARBAGE like AT&T !!
THEY will BAIL and WATCH AT&T DIE…AT&T will NEVER get ANYWHERE NEAR 15 BILLION for the SOON TO BE GONE DIRECTV !!!
Dish will be soon to follow!, Every time i was about to switch, Dish lost another set of channels! Some I like, some not. but fear not. sooner or later, YOUR FAVORITE CHANNEL WILL BE OUT, for God knows how long… It will be years decades before streaming takes over completely. Way to many areas where its just not possible
While I do not disagree that Dish in in deep doo too at LEAST “Charlie” has a CLUE of what he is doing.
SATELLITE TV is NEVER coming back to life.
IT IS inevitably going to be ONLY ONE decent supplier and EVEN if the programmers that are rebroadcast via small dish antennas come to their senses, the time to resurrect the DEAD will have long since past.
STREAMING is NOT the reason that “TV” is on life support btw…PPL ONLY watched TV because the world had NOTHING better to offer. THE INTENET has SO MUCH more to distract. THAT is why TV is DEAD.
AT&T WILL go the way of SEARS, K MART and the rest too. DO NOT let ANY tell you different.
AT&T practically “invented” the DROPPED CALL and have NO IDEA what they are doing. THIER OLD COPPER twisted pair “network” is DEAD and they have NO $$ left to stay the RIP OFF artists that have been for DECADES. DIE AT&T and btw OUR company’s MISSION is to SEE AT&T DIE as quickly as possible and we are costing them about 10000 “used to be” subscribers a DAY and there is absolutely NOTHING the STANKER SORE or ANY at AT&T can do to stop us.
WE are WINING !!
Americas Terminal Telecom company !!!
I had heard that AT&T was only offered 16 billion for 100% of DTV. AT&T has trashed a very good sub. CEO Stankey should be fired, but he will get a solid gold parachute.
P.S….Why do I click on Save my name, email, and website in this browser for the next time I comment., I DO THIS EVERY &$#% time and I STILL have to re enter!!!
like right f’ing NOW
The US Government could run DirecTV better than AT&T has done with it. 100% utter and complete clusterfarkle.