AT&T to spin off DirecTV, AT&T TV Now and U-Verse into new company valued at $16.25 billion
People walk past an AT&T store in New York.
Kena Betancur | AFP |Getty Images
Under the agreement, AT&T and TPG will form a new entity called DirecTV that will own and operate the company’s DirecTV, AT&T TV and U-verse video services. Bill Morrow, CEO of AT&T’s U.S. video unit, was named as the new company’s CEO.
The transaction implies an enterprise value for the new company of $16.25 billion, according to the company. AT&T acquired DirecTV for $48.5 billion ($67 billion with debt) in 2015 and hoped to pair the national pay-TV company with its wireless service to offer a discounted bundle to customers. Digital distribution of video has…