AT&T to spin off DirecTV, AT&T TV Now and U-Verse into new company valued at $16.25 billion

AT&T to spin off DirecTV, AT&T TV Now and U-Verse into new company valued at $16.25 billion
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People walk past an AT&T store in New York.

Kena Betancur | AFP |Getty Images

AT&T has entered into a deal with private equity firm TPG to spin off its DirecTV, AT&T TV and U-Verse business, according to an SEC filing on Thursday.

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…



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