PE firm TPG completes its $7.6B acquisition of the remaining 70% stake in DirecTV from AT&T, marking AT&T's exit from media
Private equity firm TPG completed its $7.6 billion purchase of the 70% stake it didn't already hold in DirecTV from AT&T.
AT&T's stock is up 35% in 2024 after CEO John Stankey reversed course in 2022 and spun off Warner Bros. and DirecTV, and plans to return $40B+ to shareholders
Drew FitzGerald / Wall Street Journal :
AT&T agrees to sell its majority stake in DirecTV to private equity firm TPG for $7.6B in cash, including $1.7B in pre-tax quarterly distributions in H2 2024
- DirecTV is holding advanced talks to merge with rival Dish — AT&T and TPG are owners of DirecTV, which was founded in 1994
Antenna: YouTube's NFL Sunday Ticket attracted an estimated 1.3M signups, vs. 1.2M reportedly under DirecTV; ~41% of the NFL subscribers are new to YouTube TV
Rob Golum / Bloomberg :
Sources: AT&T is exploring options for its 70% DirecTV stake, such as adding a new investor or selling the stake and exiting the venture as early as August 2024
MoffettNathanson: US pay TV users fell 7% YoY to 75.5M in Q1 2023, with household penetration at 58.5%, the lowest level since 1992; only YouTube TV grew in Q1
lowest point since 1992, 2 years before DirecTV launched Only #YoutubeTV added 300k subs in Q1 #cable https://variety.com/... @nickandmore : There are currently about 75.5 million pay-TV customers in ...
YouTube buys NFL Sunday Ticket's residential rights for seven years, sources say for ~$2B/year; DirecTV paid $1.5B/year for residential and commercial rights
Wall Street Journal :
YouTube acquires NFL Sunday Ticket residential rights for seven years, starting in 2023, sources say for ~$2B per year; DirecTV reportedly currently pays $1.5B
Video streamer to pay annual fee of roughly $2 billion under seven-year deal — Created with sketchtool.
Sources: the NFL is in advanced talks to give YouTube exclusive Sunday Ticket rights; a deal could be reached as early as December 21 after an NFL owner meeting
DirecTV currently pays for rights to subscription package that allows football fans to watch most Sunday afternoon games
AT&T plans to sell its Xandr programmatic advertising marketplace to Microsoft; the deal would not include the ad sales business supporting DirecTV
Was one of the most botched and mismanaged assets I've ever covered — Deal likely came in under $1 billion — Xandr brings in roughly $300-$380m in revenue annually and loses between $50-$90m https://w...