AT&T Explores Parting Ways With DirecTV:
Telecom giant considers fate of DirecTV satellite unit as cord-cutting saps subscriber base
AT&T Inc. is exploring parting with its DirecTV unit, people familiar with the matter said, a sharp reversal from Chief Executive Randall Stephenson's strategy to make the $49 billion bet on the satellite provider a key piece of the phone giant's future.
The telecom giant has considered various options, including a spinoff of DirecTV into a separate public company and a combination of DirecTV's assets with Dish Network Corp., its satellite-TV rival, the people said.
AT&T may ultimately decide to keep DirecTV in the fold. Despite the satellite service's struggles, as consumers drop their TV connections, it still contributes a sizable volume of cash flow and customer accounts to its parent.
AT&T acquired DirecTV in 2015 for $49 billion. The company's shrinking satellite business is under a microscope after activist investor Elliott Management Corp. disclosed a $3.2 billion stake in AT&T last week and released a report pushing for strategic changes. Elliott has told investors that AT&T should unload DirecTV, The Wall Street Journal has previously reported.
Related: https://soylentnews.org/article.pl?sid=19/09/18/1656205
Like Blockbuster, DirecTV, Dish, etc. are extremely slow to catch onto the whole Netflix/Amazon Prime Ad-Free, pick-what-I-want-to-watch model.
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printed from SoylentNews, AT&T Considers Getting Rid of DirecTV as TV Business Tanks, WSJ Reports on 2023-05-26 12:14:58