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After losing millions of customers, AT&T turns to DirecTV

AT&T is turning its DirecTV into a new company for a fraction of the $ 48.5 billion paid for satellite TV service in 2015. DirecTV lost millions of customers on its AT&T watch, և the deal is valued at just $ 16.25 billion, including debt. ,

TPG will own 30% of the business and the rest will be owned by AT&T. The telecommunications company will receive $ 7.8 billion in cash, including $ 1.8 billion from TPG and $ 5.8 billion from the new DirecTV, which borrows the money. The new DirecTV will also borrow $ 200 million from AT&T.

AT&T launched its HBO Max streaming service last year and focused on building that business. It also owns CNN և TBS, Warner Bros. along with its movie studio, in addition to its huge wireless internet business.

AT&T said the deal would strengthen its balance sheet and allow it to focus on the costly issue of upgrading its wireless network with next-generation 5G technology. This update requires expensive investments in the field of radio frequency. It simply spent $ 23.4 billion on bandwidth at the last US government auction, and AT&T plans to invest more resources in HBO Max’s fiber-optic Internet infrastructure.

AT&T will use the proceeds of the transaction to pay off the debts.

The new DirecTV company will include AT&T TV, a streaming version of cable TV և U-segment, the old AT&T cable service. AT&T will maintain its Latin American DirecTV business. AT&T said it was “expecting little change” for its customers. The deal is expected to close in the second half of the year.

“It is fair to say that some aspects of the (DirecTV) deal did not play out as we planned, for example, US pay-TV households are experiencing a faster-than-expected decline in the industry,” AT&T wrote.

According to Digital TV Research, between 2010-2020, US-Canadian cable or satellite TV subscribers decreased by 27 million, and in 2020 alone – by 6 million. A new stream of streaming services has recently emerged to compete with Netflix, including HBO Max, Disney + և NBCUniversal’s Peacock. AT & T’s video business has lost 6.7 million customers in the last two years, and by the end of 2020 it had 17.2 million subscribers.

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