AT&T is nearing a deal to sell a significant minority stake in DirecTV, AT&T TV Now and U-Verse to private equity firm TPG, according to people familiar with the case.
A deal could be announced this week, the people said, asking not to be named because the discussions are private.
The deal will value the AT&T companies at $ 15 billion. AT&T bought DirecTV in 2015 for $ 48.5 billion ($ 67 billion in debt).
AT&T has moved away from traditional pay TV in recent years as it has centered its media strategy around HBO Max. DirecTV, U-Verse and AT&T TV Now are based on a linear TV company of broadcast and cable networks that loses millions of subscribers every year.
AT&T lost nearly 3 million video customers last year and recorded a $ 15.5 billion impairment due to the re-evaluation of the company’s domestic video business.
A sale will provide AT&T with additional cash to pay off its debt, which is approximately $ 150 billion and has declined consistently over the past year.
Hedge fund Elliott Management took an activist stake in AT&T in September 2019. In a letter to management, Elliott asked AT&T to concentrate its strategic operations while considering divesting non-core assets, including DirecTV. AT&T CEO John Stankey has opposed a full sale.
TPG declined to comment. AT&T was not immediately available for comment.