- By Ely Marquez
- (General Dispatch) – AT&T is renewing its service but terminated its relationship with DirecTV in the U.S. due to the loss of millions of customers, which is currently worth $16.25 billion along with debt.
- AT&T is the largest shareholder and will receive 30% of the business from TPG. The telecommunications company will have an income of $7.8 billion in cash, a small part will be paid by TPG and $5.8 billion from the new DirecTV firm.
- The telco is making investments in other projects such as the HBO max service that started in 2020, after making heavy losses after acquiring the DirecTV service for $48.5 billion.
- After making bad decisions the company is looking to expand into new technologies such as 5G which requires a large investment to improve its infrastructure, and expand its wireless internet service.
- The new DirecTV firm will offer a cable TV service, and they will remain in Latin America, stating that they do not expect to have big changes regarding their subscribers.
- AT&T regrets the results and referred that “It is fair to say that some aspects of the (DirecTV) transaction did not unfold as we had planned, such as the decline of pay TV households in the US at a faster pace in the industry than anticipated”.
- U.S. subscribers have moved to new digital TV services, with strong competitors in the market such as Netflix, Disney and NBCUniversal’s Peacock, causing it to lose 7 million customers who have stopped using the service in the last two years.
Adittional Information:
Ap News: AT&T spinning off DirecTV after losing millions of customers
Yahoo News: AT&T spinning off DirecTV
Related Articles
