AT&T didn’t completely get rid of DIRECTV but restructured its ownership. In 2021, AT&T finalized a deal to spin off DIRECTV into a separate entity as part of a joint venture with TPG Capital, a private equity firm. AT&T retained a 70% stake in the new company, while TPG Capital acquired a 30% share.
This move allowed AT&T to focus more on its core wireless and broadband businesses while reducing debt and reallocating resources. The partnership with TPG Capital gave DIRECTV more autonomy to focus on its video services, including satellite TV, streaming, and other offerings.
The restructuring also addressed challenges in the pay-TV industry, such as cord-cutting and the rise of streaming platforms, by giving DIRECTV the flexibility to adapt to changing market demands. Despite the spin-off, DIRECTV continues to operate under the same brand and offer its services to customers.
