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(Reuters) – Wireless carrier AT&T Inc (NYSE:T) will sell about a third of its stake in satellite TV unit DirecTV to buyout firm TPG Capital and spin off the business it bought for $68 billion less than six years ago.
The newly created “New DirecTV”, which includes DirecTV, AT&T TV and U-verse video services, has an enterprise value of $16.25 billion, including debt, the companies said in statement.
AT&T is also under pressure to cut its debt pile of $147.5 billion as it invests more in 5G and other wireless services.
The deal is expected to close in the second half of 2021.
Reuters reported in January that TPG was in exclusive talks to acquire a minority stake in DirecTV, in a deal that would allow the U.S. wireless carrier to trim its net debt.
In the fourth quarter, AT&T wrote down its premium TV business, which includes satellite television unit DirecTV, by $15.5 billion. The segment lost 617,000 subscribers in the quarter.
AT&T to sell minority stake in DirecTV to buyout firm TPG Capital
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