AT & T Inc’s satellite television provider DirecTV will become a separate video business as part of an agreement between the wireless service provider and acquisition firm TPG Capital.
The video services unit said Monday it will launch DirecTv Stream, a platform that will allow its users to access streaming services such as Netflix, Amazon.com Inc.’s Prime Video and HBO Max.
The move will boost the position of the television operator, which like its peers, had been losing subscribers to video streaming services like Netflix, Prime Video and Walt Disney Co’s Disney + service, which offer exclusive shows and award-winning shows. awards.
DirecTV said that as part of the agreement, customers who were previously subscribers to AT&T satellite video, streaming or IP will be able to keep their video service and any included wireless or Internet services, including HBO Max.
In February, AT&T agreed to sell about a third of its DirecTV stake to TPG Capital in a deal that valued the business at $ 16.25 billion, well below the $ 68 billion that AT&T had paid for the asset less than six years.
AT&T has been under pressure to cut its mounting debt as it invests more in 5G and other wireless services.
AT&T will own 70% of the new company and TPG 30%.
The Platform Executive team hopes you enjoyed this article. Machine translation from English to a growing list of languages via Google AI Cloud Translation. Initial reports through our official content partners at Thomson Reuters. Report of Tiyashi Datta in Bengaluru. Edited by Shinjini Ganguli.
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