TPG (NASDAQ: TPG), a global alternative asset management firm, has completed its acquisition of the remaining 70% stake in DIRECTV from AT&T, making the U.S. video services provider a wholly owned portfolio company of TPG Capital.
The transaction deepens TPG’s investment in the video and digital media sector, strengthening a partnership first established in 2021 when TPG acquired a 30% stake in DIRECTV. Financial terms of the current transaction were not disclosed.
The move comes as the pay-TV industry faces mounting challenges from evolving consumer preferences and a surge in streaming competition. With full ownership, TPG said it plans to accelerate DIRECTV’s transformation into a next-generation video platform, emphasizing flexibility, value, and customer satisfaction.
“DIRECTV is a proven pay TV innovator, and we are excited to deepen our highly successful partnership at a pivotal time for the industry,” said David Trujillo, Partner at TPG. “This transaction reflects our confidence in DIRECTV’s management team and their ability to continue delivering exceptional value and a truly innovative streaming service to customers.”
John Flynn, also a Partner at TPG, added, “The company is well-positioned to compete and thrive in a rapidly evolving content and technology landscape.”
Since TPG’s initial investment, DIRECTV has grown its streaming subscriber base significantly, reduced customer churn, and maintained strong satisfaction scores.
Bill Morrow, CEO of DIRECTV, welcomed the development. “We have big plans to increase investments in innovative video services to deliver the best entertainment experience at the right value for our customers nationwide,” he said.
In conjunction with the closing, AT&T’s representatives — Thaddeus Arroyo, Lori Lee, and Jamie Barton — along with independent board member Steve McGaw, have stepped down from DIRECTV’s Board. Tony Vinciquerra, former CEO of Sony Pictures Entertainment, has joined the board, bringing decades of experience across media and technology sectors.
TPG, founded in 1992 and headquartered in San Francisco, manages $258 billion in assets across multiple investment strategies, including private equity, credit, real estate, and impact investing.