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  • DirecTV Prices Going Up in January

    DirecTV Prices Going Up in January

    DirecTV is raising its streaming and satellite TV packages starting in January.

    DirecTV was spun off from AT&T in August, and now competes with the likes YouTube TV, Hulu with Live TV, Sling TV, and fuboTV streaming services, while still competing with Dish Network for the satellite market. Unfortunately for DirecTV customers, the company is planning on raising prices across both of its services in January.

    According to The Verge, satellite TV customers will see their plans go up anywhere from $1 to $10. Meanwhile, streaming TV customers will see increases ranging from $4 to $10.

    Many providers often give up channels rather than increase prices. YouTube TV recently announced it would drop its price by $15 if it loses Disney-owned channels. In contrast, DirecTV said in a statement seen by The Verge that its prices were increasing because it is committed to offering the most robust packages. 

    “While competitors continue to shrink their offerings, your DirecTV team maintains a steadfast commitment to carrying the most robust channel line-up in the industry and unrivalled [sic] leadership in premium sports and news content,” the company wrote. “In addition, we continue to invest in providing better customer service, releasing new technology upgrades that will enhance our signal reliability, and launching improved features. We are also delivering greater flexibility to watch what you want, when you want it, from virtually anywhere in the U.S.”

  • AT&T Will Spin Off DirecTV

    AT&T Will Spin Off DirecTV

    After months of exploring a potential sale of DirecTV, AT&T has decided to spin off the satellite TV service.

    AT&T bought DirecTV for $48.5 billion ($67.1 billion including debt), in 2015, but the service has since lost millions of customers. The satellite industry has experienced difficulties as a whole, threatened by the widespread adoption of streaming TV services. Even so, DirecTV’s losses have far outpaced its rival, Dish Network. As a result, AT&T has been looking to get rid of DirecTV for some time, exploring various options, including an outright sale.

    It appears the company has, instead, opted to spin off its satellite service with the help of TPG Capital. The deal is worth a mere $16.25 billion, including debt. AT&T will receive $7.8 billion in cash, including $5.8 billion from the new DirecTV and $1.8 billion from TPG. AT&T will use the cash to help pay down its debt.

    “This agreement aligns with our investment and operational focus on connectivity and content, and the strategic businesses that are key to growing our customer relationships across 5G wireless, fiber and HBO Max. And it supports our deliberate capital allocation commitment to invest in growth areas, sustain the dividend at current levels, focus on debt reduction and restructure or monetize non-core assets,” said AT&T CEO John Stankey. “As the pay-TV industry continues to evolve, forming a new entity with TPG to operate the U.S. video business separately provides the flexibility and dedicated management focus needed to continue meeting the needs of a high-quality customer base and managing the business for profitability. TPG is the right partner for this transaction and creating a new entity is the right way to structure and manage the video business for optimum value creation.”

    AT&T will own 70% of the common equity of the new company, with TPG owning the remaining 30%.

    “We certainly didn’t expect this outcome when we closed the DirecTV acquisition in 2015,” AT&T CEO John Stankey said on a conference call, according to CNBC, although he expressed his belief the deal represents the best option for AT&T shareholders.