Shares of AT (NYSE: T) fell as much as 6% early Friday, then settled to close down around 2.7% following a report that the company is weighing whether to divest its stake in DirecTV next year.
According to Bloomberg, AT has begun exploring options to divest its 70% ownership stake in DirecTV once it's legally able to do so. The telecommunications giant co-owns DirecTV along with private equity firm TPG through a joint venture formed in 2021. DirecTV was valued at around $16 billion at the time, and the terms of that joint venture included a three-year commitment giving at the option to sell its stake after July 31, 2024.
AT and TPG declined to comment on the news, and DirecTV representatives stated they're not aware of "any such exploration."
Source Fool.com