AT&T Agreed to Sell Direct TV Stake, Paving the Way to Merge with Dish Tv
- Scott Peters
- U.S.A. New York City
-
Dish TV and Direct TV announced a merger after a complex deal with the private equity group TPG, consummating a long-sought merger by the two satellite television companies.
AT&T edged up 0.3% to $21.95 after the company said it has agreed to sell its 70% stake in satellite TV company DirectTV Entertainment Holding LLC to a private equity firm TPG for about $7.6 billion in cash payments stretching to 2029.
AT&T will receive $1.7 billion in cash at the time of completion of the deal, $5.4 billion in payment in 2025, and $500 million in 2029.
DirectTV also said in a separate statement it has agreed to buy Sling TV and Dish TV from EchoStar through debt exchange, culminating in a combination of two satellite TV companies.
In addition, Direct TV will acquire Dish TV's video distribution business for $1 and assume a net debt of $9.75 billion.
Annual Returns
| Company | Ticker | 2025 | 2024 | 2023 |
|---|---|---|---|---|
| AT&T Inc | T | -3% | 36% | -9% |
| EchoStar Corporation | SATS | 0% | 37% | 1% |