Report: AT&T Open to Selling Minority Stake in Pay-TV Operations

(Image credit: AT&T)

DALLAS—AT&T is reportedly fielding offers for what is being described as “a significant minority stake” in its pay-TV operations, which include DirecTV, AT&T and U-Verse. CNBC was the first to report the news, citing sources familiar with the matter.

AT&T is already in discussions with private equity firms, per CNBC, including Apollo Management. AT&T is looking to keep majority economic ownership of its pay-TV business and ownership of the U-Verse infrastructure, but the buyer would control pay-TV distribution operations and consolidate the business on its books. According to sources, the deal could be from anywhere between 30%-49% of AT&T’s pay-TV operations, CNBC reports.

Final deals are said to be due in early December.

At the end of the third quarter of 2020, AT&T reported that it had about 17 million legacy TV subscribers (DirecTV and U-Verse) and about 683,000 AT&T Now customers.

AT&T acquired DirecTV in 2015 for $67 billion. CNBC estimates that a deal for a minority stake could value DirecTV at less than $15 billion, including debt.

For more information, read CNBC’s full coverage