AT&T Begins To Explore Options For 70% Stake In DirecTV : Report

(RTTNews) - AT&T Inc. (T) has begun to explore options for its 70% stake in DirecTV as the pay-TV provider faces declines in subscribers, as well as AT&T approaches the end of an agreement upon which it can legally sell its interest in DirecTV, Bloomberg reported citing people familiar with the discussions.

Among AT&T's options are: a dividend recapitalization, adding a new investor, or selling the stake and exiting the venture as early as August 2024. A deal isn't imminent and discussions are still in the early stages. The current ownership structure may still continue as is, the report said.

AT&T co-owns DirecTV with private equity firm TPG Inc. as part of a joint venture formed in 2021. The partnership came with a three-year commitment that gave AT&T the option to sell its stake after July 31, 2024, and a clause that allows AT&T to hold sale discussions before the end of that commitment period.

AT&T had previously explored a merger between DirecTV and Dish Network Corp.'s satellite-TV service.