AT&T is nearing an agreement to sell a substantial minority stake in its DirecTV, AT&T TV Now and U-Verse businesses to private equity firm TPG, according to people familiar with the matter.
An agreement could be announced as early as this week, people said, who asked not to be appointed because the discussions are private.
The deal will value AT&T businesses at about $ 15 billion. AT&T acquired 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 broadcast and cable television business that loses millions of subscribers each year.
AT&T lost nearly 3 million video customers last year and charged a $ 15.5 billion impairment charge due to the revaluation of its company’s national video company.
A sale will provide AT&T with additional cash to pay off its debt, which stands at about $ 150 billion and has steadily declined over the past year.
The hedge fund Elliott Management took an activist stake in AT&T in September 2019. In a letter to management, Elliott asked AT&T to focus its strategic operations on considering divesting non-core assets, including DirecTV. AT&T CEO John Stankey has resisted the full sale.
TPG declined to comment. AT&T could not be reached for comment immediately.