AT&T had announced earlier this year that its video properties DirecTV and AT&T TV would be merged into a new company, which it would manage with private equity firm TPG Capital. The transaction has been completed and DirecTV will operate the services as one company.TPG will acquire a 30% stake. This is in contrast to the 70% that AT&T had originally announced when it planned to sell its DirecTV business. According to the telecom giant, the $7.1 billion cash deal would pay off its huge debt. TPG will take a 30 percent stake.AT&T's 2015 acquisition of DirecTV originally owed a portion of the debt. AT&T paid $48.5 million ($67 billion accounting to debt) for the business. It is difficult to say that this business decision failed to deliver, given that DirecTV had been a victim to financial hardship for many years before the TPG deal.AT&T boss John Stankey stated that AT&T would be focusing on content and connectivity, including 5G wireless and fibre, as well as HBO Max, when the TPG deal was announced. Recent changes to AT&T's strategy have allowed it to focus on its core business, and, as Stankey recently stated, "unleash the media assets."TPG's deal does not include WarnerMedias assets, such as its flagship streaming service HBO Max. These are being transferred to Discovery instead. (WarnerMedia & Discovery are currently waiting approval for the merger of their companies.The deal will also include DirecTV content deals such as NFL Sunday Ticket. AT&T also stated that DirecTV will continue to offer HBO Max to subscribers, along with any bundled broadband or wireless services and associated customer discounts.
