AT&T calls for an auction to sell DirecTV

As reported by the US newspaper ‘New York Post’ on its web version this Tuesday, October 6th, AT&T continues with its decision to divest itself from DirecTV, and called for a new auction for the DTH operation. The website, however, was not clear when reporting if AT&T intends to sell only DirecTV’s operations in the US, or if the initiative also includes operations in Latin America.

AT&T acquired DirecTV in 2015, valued at USD 49 billion. However, the offers that were presented valued the DTH operator bellow USD 20 billion, and, according to New York Post, they were around USD 15.75 billion, that is, less than a third of what was paid five years ago, when AT&T acquired DirecTV and took over a debt valued at USD 18 billion, in addition to the value of the acquisition.

In August, Charlie Ergen, Dish CEO, had stated that a merger with DirecTV would be ‘inevitable’, thus nominating the company as another potential acquirer of the DTH. However, according to New York Post, Dish, DirecTV’s main competitor, had no participation in the auction. In addition, also in August, The Wall Street Journal reported the interest of Apollo Global Management and Platinum Equity investment funds to acquire DirecTV.