Summary by Moomoo AI
AT&T Inc. has entered into a definitive agreement to sell its majority stake in DIRECTV Entertainment Holdings LLC to TPG, a private equity firm. The transaction, announced on September 30, 2024, will result in AT&T receiving approximately $7.6 billion in cash payments from DIRECTV and TPG through 2029. This includes $1.7 billion in pre-tax quarterly distributions in the latter half of 2024, $5.4 billion of after-tax cash distributions and other payments in 2025, and a final payment of $0.5 billion in 2029. The sale is part of AT&T's strategic move to focus on its core wireless 5G and fiber connectivity business and to strengthen its balance sheet. The transaction is expected to close in the second half of 2025, subject to customary closing conditions and regulatory approvals. AT&T's press release also highlighted that the company has achieved financial outcomes consistent with its expectations since retaining a 70% interest in DIRECTV three years ago, with reported cash distributions totaling $19 billion.
