AT&T has announced an agreement to sell its majority stake in DIRECTV Entertainment Holdings LLC to TPG, the current minority stakeholder. AT&T anticipates receiving roughly $7.6 billion in cash payments from DIRECTV and TPG over the period extending to 2029. This amount includes $1.7 billion in pre-tax quarterly distributions during the second half of 2024, encompassing the expected pre-tax distribution for the third quarter of 2024 that is not part of the deal; $5.4 billion in after-tax cash distributions and other tax-exempt payments in 2025; and $0.5 billion in final after-tax payments expected in 2029.
AT&T stated that this sale will enable it to concentrate on its core mission of becoming the leading wireless 5G and fiber connectivity provider in the United States. Additionally, the transaction is set to bolster the company’s financial stability by accelerating the receipt of cash flows anticipated over the coming years.
