AT&T has announced that it has completed the spinoff of DirecTV. The move was originally announce this past February and makes DirecTV a standalone company once again. This ends a very tumultuous and brief era for DirecTV under the AT&T brand.
“This is a watershed moment for DIRECTV as we return to a singular focus on providing a stellar video experience,” said Bill Morrow, CEO, DIRECTV. “Building on our recent momentum, 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.”
Under the deal terms, AT&T sold a 30 percent stake in DirecTV, AT&T TV and its U-Verse to TPG in exchange for $1.8 billion in cash. The telecon giant will retain a 70 percent stake in the business. DirecTV was originally purchased by AT&T in 2015 for $48.5 billion. AT&T has disclosed that it has received $7.1 billion in this deal.
The company announced that it had 15.4 million customers at the end of the second quarter which is a significant decline from 24 million customers when DirecTV was originally acquired.
Going forward, DirecTV will consist of the DirecTV satellite service, AT&T TV streaming , and U-Verse TV and AT&T’s cable television service. AT&T TV will be rebranded as DirecTV Stream. The new service will be marketed as a sports behemoth which will offer live sports in 4K HDR and NFL Sunday Ticket.
The service will continue to be available with no term commitment or hidden fees. Existing customers can exhale as there will be no changes to pricing or packages. You can continue using your own streaming device or you can choose to use the DirecTV’s own device which has the ability to pause live TV on up to 20 devices in your home. Existing customers will also automatically keep their video service, any bundled wireless, internet or HBO Max services, and associated discounts with no action needed.
Cord Cutting Reviews will continue to follow any developments as they happen to keep you up-to-date in this ever changing industry. DirecTV Stream is scheduled to launch later this month.