AT&T is still considering selling off a “significant minority stake in DirecTV”.
According to a report by business news channel CNBC, various Venture Capitalist funds, including Apollo Management, are planning to make bids.
However, the bad news for AT&T is that the cash under consideration would value DirecTV at less than $15 billion. That’s a huge loss on the $67 billion that AT&T paid for DirecTV just 5 years ago.
Reports suggest that all of AT&T’s pay-TV assets are up for grabs including DirecTV itself, AT&T NOW and U-Verse offerings.
The plan being reported is that AT&T would hold onto a majority economic share as well as the U-Verse infrastructure. The incoming new buyer would control the complete pay-TV distribution although not DirecTV’s Latino operations.
Final bids are due in next month.