Shares are trading higher after Friday afternoon, with the company looking for a deal for its DirecTV business.
The Wall Street Journal is reporting that AT&T (Ticker: T) has been hired
To discuss the possible sale of satellite TV service to private-equity buyers. The article noted that potential buyers include Apollo Global Management and Platinum Equity.
AT&T acquired satellite TV service in 2015 for $ 49 billion, which did not go as expected. At the time of the transaction, AT&T viewed the service as a way to build its total video subscriber base to reduce its programming costs. But in recent years, DirecTV has suffered a deep loss of subscribers, as consumers transfer their viewing to online streaming services.
(AMZN) Prime Video, and
There is often speculation that DirecTV may eventually merge
(DISH), its primary competitor in satellite TV service. In 2002, the Federal Communications Commission blocked the proposed combination of Ecostar Communications, which owned Dish and DirecTV, then operated by
(GM) Hughes Electronics is finding the proposed deal to be anticompetitive.
The Journal noted that Dish CEO Charlie Ergon often called the merger of the two companies inevitable, and investors are looking at the report about DirecTV’s potential sales as a positive sign, possibly rekindling potential merger discussions. can start.
AT & T’s stock rose 1.2% to $ 30.41 in trading at the end of Friday, while Dish rose 7.1% to $ 37.30.
Write Eric J. at [email protected] Savitz