Acquisition of DirecTV by AT&T

AT&T and the DirecTV Group entered into a cash-and-stock agreement on May 18, 2014, in a massive deal that would combine one of the world's largest telecommunications companies with the biggest satellite television operator in the United States. Due to stalling growth from within the wireless sector, AT&T began diversifying into mass media to expand its consumer offerings. As part of their definitive contract, AT&T agreed to pay $48.5 billion at $95 per share to acquire DirecTV and assume up to $18.6 billion in debt obligations for a total offer of $67.1 billion. Early reactions to the proposed acquisition ranged from initial skepticism to heightened concern, as many expressed questions as to why a company like AT&T, which operated within traditional telecom sectors like mobile data and home internet, wanted to oversee the day-to-day operations of a company like DirecTV.

Senior management at AT&T defended the deal as being necessary to compete with Big Tech companies and to create more bundling options for subscribers. Despite the mixed reception, the Federal Communications Commission approved the acquisition on July 24, 2015, and allowed the merger to close. AT&T instantly became the largest American operator of Pay-Tv subscribers and brought DirecTV into its Entertainment Group, headed by John Stankey. DirecTV Now was launched on November 30, 2016, as an alternative to cord-cutting. By 2017, DirecTV was brought under AT&T's Communications Segment.

In the years following the purchase, the pay TV market declined significantly, and, by 2019, Elliott Management called for AT&T to divest "valuable-yet-non-core franchises", such as regional sports networks and Latin American operations. Initially, AT&T defended the acquisition despite steady subscriber losses, but, by February 2021, an agreement was reached with TPG Inc. to transfer ownership of DirecTV. Under the terms of the deal , AT&T would retain a 70% majoritystake in DirecTV but would no longer oversee its daily operations. The deal was finalized by August 2, 2021, with AT&T receiving $7.1 billion. By September 30, 2024, AT&T announced that it would sell its remaining seventy-percent stake to TPG Inc. for $7.6 billion. The divestment was completed on July 2, 2025, making DirecTV a wholly owned subsidiary of TPG Inc. and splitting the company off from AT&T for the first time since 2015.