Stronger Financial Profile to Enable DIRECTV to
Accelerate Investments in Innovative Next-Generation Streaming
Services
Transaction Reflects TPG’s Long-Term Focus on
Content Distribution and Ability to Provide Bespoke Solutions to
Corporate Partners
TPG (NASDAQ: TPG), a leading global alternative asset management
firm, today announced it has reached an agreement to acquire from
AT&T the remaining 70% stake in DIRECTV that it does not
already own. TPG will invest in DIRECTV through TPG Capital, the
firm’s U.S. and European private equity platform.
Since 2021, DIRECTV has operated as a joint venture between
AT&T and TPG consisting of DIRECTV, DIRECTV STREAM and U-verse
video services previously owned and operated by AT&T. This
transaction is expected to provide DIRECTV with a stronger
financial platform to increase investments in innovative video
offerings that benefit consumers.
This transaction will strengthen TPG’s existing partnership with
DIRECTV, and TPG’s proven expertise in the internet, digital media
and communications sectors will support DIRECTV’s efforts to grow
its next-generation streaming service, which has millions of
subscribers and delivers multi-billion dollars of revenue
annually.
“This transaction is the right next step for DIRECTV as we
advance our vision and continue to evolve our product to offer
consumers the broadest array of content,” said Bill Morrow, CEO of
DIRECTV. “Our team is the best in the business, and we are driven
to provide innovative video services with an outstanding customer
experience. We are eager to deepen our support from TPG and invest
in our video services to benefit customers nationwide.”
“DIRECTV is a pioneer in pay TV, and we are eager to continue to
support the company’s innovation of value-oriented streaming and
video offerings for consumers,” said David Trujillo, Partner at
TPG. “DIRECTV will be in a stronger position to reinvigorate its
core product offerings and accelerate investment in its
next-generation streaming service. We look forward to continuing to
support DIRECTV, alongside its talented team, to accelerate the
company’s strategic vision.”
“DIRECTV has a 30-year legacy of innovating for consumers while
providing greater value and better service than incumbent
providers, and we are thrilled to extend our highly successful
partnership together. With this transaction, DIRECTV will be better
able to invest in advancing the next generation of video services
that benefit consumers and provide a broad diversity of
programming,” said John Flynn, Partner at TPG.
Transaction Terms
Under the terms of the transaction, TPG will make an initial
payment of $2.0 billion, subject to certain deductions, to AT&T
during 2025 and additional payments to AT&T totaling $500
million in 2029. AT&T expects to receive approximately $7.6
billion in cash payments from DIRECTV through 2029. The transaction
also contemplates that DIRECTV will make a special distribution
prior to March 31, 2025, of at least $1.625 billion that will be
paid to the equity holders of DIRECTV, proportional to their
respective ownership positions.
The transaction is expected to close in the second half of 2025,
subject to customary closing conditions, including receipt of
required regulatory approvals. Upon completion of the transaction,
DIRECTV will continue to be led by its current management team,
including CEO, Bill Morrow.
Advisors
Barclays is serving as lead financial advisor to TPG, and BofA
Securities, Evercore, LionTree and Morgan Stanley also provided
financial advice. Ropes & Gray LLP, Cleary Gottlieb Steen &
Hamilton LLP and Mintz, Levin are serving as legal advisors to
TPG.
About TPG
TPG is a leading global alternative asset management firm,
founded in San Francisco in 1992, with $229 billion of assets under
management and investment and operational teams around the world.
TPG invests across a broadly diversified set of strategies,
including private equity, impact, credit, real estate, and market
solutions, and our unique strategy is driven by collaboration,
innovation, and inclusion. Our teams combine deep product and
sector experience with broad capabilities and expertise to develop
differentiated insights and add value for our fund investors,
portfolio companies, management teams, and communities.
Forward Looking Statements; No Offers
This document contains “forward-looking statements.”
Forward-looking statements can be identified by words such as
“expect,” “will” and similar references to future periods. Examples
of forward-looking statements include, but are not limited to,
statements we make regarding the expected benefits, timing and
terms of the transaction.
Forward-looking statements are based on our current expectations
and assumptions. Because forward-looking statements relate to the
future, by their nature, they are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. As a result, our actual results may differ
materially from those contemplated by any forward-looking
statements. Important factors that could cause actual results to
differ materially from those in the forward-looking statements
include the inability to realize the anticipated benefits of the
contemplated transaction or to close the transaction on the
timeline we expect; and regional, national or global political,
economic, business, competitive, market and regulatory conditions,
among various other risks discussed in the Company’s SEC
filings.
For the reasons described above, we caution you against relying
on any forward-looking statements, which should be read in
conjunction with the other cautionary statements included elsewhere
in this document and risk factors discussed from time to time in
the Company’s filings with the SEC, which can be found at the SEC’s
website at http://www.sec.gov. Any forward-looking statement in
this document speaks only as of the date of this document. Factors
or events that could cause our actual results to differ may emerge
from time to time, and it is not possible for us to predict all of
them. We undertake no obligation to update or revise any
forward-looking statement after the date of this document, whether
as a result of new information, future developments or otherwise,
except as may be required by law. No recipient should, therefore,
rely on these forward-looking statements as representing the views
of the Company or its management as of any date subsequent to the
date of the document.
This document does not constitute an offer of any TPG Fund.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240929836245/en/
Media Luke Barrett / Courtney Power TPG 415-743-1550
media@tpg.com
Tom Johnson / Dan Scorpio H/Advisors Abernathy 212-371-5999
Tom.johnson@h-advisors.global / dan.scorpio@h-advisors.global
TPG (NASDAQ:TPG)
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