AT&T Exits Entertainment, Sells DirecTV Stake for $7. 6 Billion

AT&T is stepping away from the entertainment scene. It's selling its majority stake in satellite TV provider DirecTV to private equity firm TPG Partners for a whopping $7. 6 billion. This move comes more than 10 years after AT&T bought DirecTV for $48. 5 billion, aiming to boost its video subscriber base and compete with rivals. But things didn't go as planned. The subscription TV business has been struggling due to people canceling their cable or satellite TV subscriptions in favor of streaming services like Netflix. In 2021, after losing millions of customers, AT&T sold a 30% stake of DirecTV to TPG for $16. 2 billion. Now, with this new deal, AT&T is selling its remaining 70% stake in DirecTV. The sale is expected to be finalized in the second half of 2025. Meanwhile, DirecTV has big news too. It's acquiring satellite-TV provider Dish from EchoStar, which includes Sling TV, for $1 plus assuming roughly $9. 8 billion in debt. With this shift, AT&T wants to focus on being the top wireless 5G and fiber connectivity company in America. Shares of AT&T showed a slight increase before the market opened on Monday.