AT&T has completed the spin-off of is DirecTV business in a joint venture with TPG, as first announced in February. DirecTV owns and operates the former AT&T US and Puerto Rico pay-TV business, including satellite, streaming and IP video services with around 15.4 million subscribers.
Going forward DirecTV will focus on the extensive sports programming available on its satellite service, offered in 4K HDR. The IP service will be renamed DirecTV Stream later this month, offering live and on-demand content with no contract required. DirecTV Stream comes with access to third-party apps, including HBO Max, which remains directly owned by AT&T. AT&T said existing DirecTV customers would also retain any discounts associated with subscribing to its other services, such as internet.
Under the joint venture, AT&T holds a 70 percent and TPG 30 percent. TPG also contributed USD 1.8 billion to help the new company get started. Bill Morrow serves as CEO of DirecTV, with the board members Steve McGaw and Thaddeus Arroyo appointed by AT&T and David Trujillo and John Flynn appointed by TPG.
At the closing, AT&T received USD 7.1 billion in cash, which it will devote to debt reduction.
