AT&T to Explore a Sale of DirecTV (Report)

AT&T is considering parting ways with DirecTV, either spinning the company off or selling it outright, according to a report in the Wall Street Journal.

According to the report, which cited people familiar with the matter, AT&T is considering multiple options including spinning DirecTV off into a separate public company or combining its assets with rival satellite TV provider Dish Network. The WSJ said that AT&T may ultimately decide to keep DirecTV.

A representative for AT&T declined to comment.

The report comes a week after Elliott Management Corporation, which said that it now manages $3.2 billion worth of AT&T shares, wrote a lengthy letter to the telecom and media giant’s board of directors outlining what Elliott called AT&T’s “long-term underperformance.” In the letter, Elliott went particularly hard against AT&T’s 2014 purchase of satellite TV provider DirecTV and argued that AT&T bought a declining asset.

AT&T bought DirecTV in 2015 for $49 billion.

More to come…

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