AT&T wants to sell half of its shares in DirecTV

AT&T has hired Goldman Sachs Group Inc. to assist with the process of spinning off its stake in DirecTV, according to a report in the Wall Street Journal. AT&T acquired DirecTV in 2015, and the total purchase price, including the debt assumed, was approximately $ 67.1 billion. With the rise of various digital and OTT platforms like <a class="tvreplink" target="_blank" href="https://www.tradingview.com/chart/?symbol=Nasdaq%3ANFLX">Netflix Inc., DirecTV's subscriber base has steadily declined, and that's supposed to be the reason AT&T is considering selling. Goldman Sachs advisors and AT&T officials have held discussions with private equity firms, the WSJ said in a late Friday story, quoting unnamed people familiar with the matter. Apollo Global Management Inc. and Platinum Equity are viewed as potential buyers, the report said. AT&T plans to hold up to 50% of the assets, which would allow the telecommunications giant to take advantage of DirecTV's distribution network. If AT&T can sell half of DirecTV's stake at $ 34 billion, it would be a no-profit, no-loss scenario for the company, and it could still generate revenue from the remaining half of DirecTV's assets, according to the WSJ . AT&T CEO John Stankey made his intentions on the deal clear when he said the company should focus more on core competencies like connectivity services. Cellular and broadband services are AT & T's main revenue segments, accounting for more than half of the company's annual revenue. According to the report, the company could keep the pay-TV customers even if they decide to tear down the satellite infrastructure.