AT&T Inc (NYSE:T, ETR:SOBA) is selling its remaining 70% stake in DirecTV (NASDAQ:DTV) to private equity firm TPG for approximately $7.6 billion, marking the end of AT&T’s ties to the entertainment industry.

According to reports, the transaction will be completed in stages, with AT&T receiving $1.7 billion in 2024 and $5.4 billion in 2025, and the remainder by 2029.

AT&T initially acquired DirecTV for $48.5 billion in 2015 but faced significant customer losses, prompting the sale of a 30% stake to TPG in 2021.

Separately, DirecTV announced plans to acquire Dish TV and Sling TV from EchoStar in a debt exchange transaction valued at $1, alongside assuming about $9.8 billion in debt.

The long-rumored merger is seen as a strategic move to compete with dominant streaming services.

DirecTV CEO Bill Morrow stated that the combined entity would offer more competitive content packages and enhance operational efficiency.

The deal, aimed to close in Q4 2025, hinges on regulatory approvals and bondholders agreeing to write off approximately $1.6 billion in debt.