AT&T has completed the spinoff of DirecTV after announcing a deal with TPG in February that gave the private equity firm 30% of the company, with AT&T holding onto 70%.
AT&T will get $7.8 billion in the deal, with $1.8 billion coming from TPG and $5.8 billion from the new DirecTV. Financials of the new company will not be included in AT&T’s balance sheet moving forward.
The new DirecTV will be focused only on video. CEO Bill Morrow said in a statement Monday that “we are well positioned to bring unparalleled choice and value to all of our customers under one iconic brand whether they beam it or stream it.”
Within the new company, all streaming offerings will be under the umbrella of DirecTV Stream, including AT&T TV. AT&T says there will be no changes to packages and pricing, aside from the name change, and that customers won’t have to take any action to keep their service.
When AT&T TV becomes DirecTV Stream, subscribers will still be able to choose from four packages: the Entertainment Package with 65+ channels for $69.99; the Choice Package with 90+ channels and HBO Max included for 1 year for $84.99; the Ultimate Package with 130+ channels and HBO Max included for 1 year for $94.99; and the Premier Package with 140+ channels and HBO Max, Cinemax, Showtime, and Starz included for $139.99.
AT&T is also in the process of being approved for combining WarnerMedia with Discovery. AT&T purchased Time Warner for $85 billion in 2018. If the deal is approved, AT&T would receive $43 billion in a combination of cash, debt securities and WarnerMedia’s retention of certain debt.