SAN FRANCISCO & FORT WORTH, Texas – TPG (NASDAQ: TPG), a global leader in alternative asset management, announced today that it has reached an agreement to acquire AT&T’s remaining 70% stake in DIRECTV. TPG Capital, the firm’s U.S. and European private equity platform, will lead the investment.
DIRECTV has operated as a joint venture between AT&T and TPG since 2021, encompassing DIRECTV, DIRECTV STREAM, and U-verse video services. The transaction aims to enhance DIRECTV’s financial foundation, allowing for greater investment in innovative video offerings that benefit consumers.
TPG’s strengthened partnership with DIRECTV will leverage its expertise in the internet, digital media, and communications sectors, bolstering DIRECTV’s next-generation streaming service, which has millions of subscribers and generates multi-billion-dollar revenues annually.
“This deal represents the next logical step in DIRECTV’s evolution, enabling us to continue innovating and offering consumers a broad array of content,” said Bill Morrow, CEO of DIRECTV. “We’re excited to deepen our relationship with TPG and invest further in enhancing the customer experience across the U.S.”
“DIRECTV is a pioneer in pay TV, and we look forward to supporting its continued innovation in streaming and video services,” said David Trujillo, Partner at TPG. “With this transaction, DIRECTV will be well-positioned to reinvigorate its core offerings and advance its streaming platform.”
“DIRECTV has a 30-year history of providing exceptional service and value, and we’re excited to extend our partnership to accelerate its next-gen video offerings,” added John Flynn, Partner at TPG.
Transaction Terms
TPG will make an initial payment of $2.0 billion to AT&T in 2025, with additional payments totaling $500 million in 2029. AT&T anticipates receiving approximately $7.6 billion from DIRECTV through 2029. A special distribution of at least $1.625 billion will also be made to DIRECTV’s equity holders by March 31, 2025.
The transaction, expected to close in the second half of 2025, is subject to regulatory approvals. DIRECTV’s current management, led by CEO Bill Morrow, will continue to lead the company post-transaction.
Advisors
Barclays is the lead financial advisor to TPG, with additional advice from BofA Securities, Evercore, LionTree, and Morgan Stanley. Legal advisors include Ropes & Gray LLP, Cleary Gottlieb Steen & Hamilton LLP, and Mintz, Levin.
About TPG
Founded in 1992 in San Francisco, TPG is a global alternative asset management firm with $229 billion in assets under management. TPG invests across a wide range of strategies, including private equity, impact, credit, real estate, and market solutions, with a focus on collaboration, innovation, and inclusion.
Forward-Looking Statements; No Offers
This document contains forward-looking statements based on current expectations and assumptions, which are inherently subject to risks and uncertainties. Actual results may differ materially due to various factors. TPG undertakes no obligation to update forward-looking statements unless required by law. This document does not constitute an offer of any TPG fund.
