AT&T TV has recently rebranded as DirecTV Stream and is one of the renowned live TV streaming services in the United States. DirecTV Stream offers a broad choice of channels, reasonable prices, and many desirable features, making it a suitable replacement for cable and satellite TV. However, a question that many people ask is – who is the owner of DirecTV Stream? Let's find out.
A Brief History of DirecTV Stream's Ownership
DirecTV Stream service was launched in 2019 under the ownership of AT&T. DirecTV satellite service was bought by AT&T back in 2015 and 2019 AT&T unveiled AT&T TV as their cable and satellite TV live streaming service. This was driven by the technology acquired from the DirecTV company that they had purchased.
In May 2021, AT&T revealed that WarnerMedia would merge with Discovery Networks to create a new company. Under this arrangement, AT&T was to surrender its interest in the new company. They also revealed that they will be divesting a minority stake in the DirecTV Stream service.
DirecTV Stream is Now Owned Jointly by AT&T and TPG Capital
In February 2022, DirecTV Stream received a minority investment of 30% from TPG Capital, one of the leading private equity firms in the world. In the same agreement, the service was also renamed from AT&T TV back to DirecTV Stream. The details of the agreement were not revealed to the public.
So as of 2022, the ownership of DirecTV Stream stands as:
AT&T: 70% controlling stake
TPG Capital: 30% of minority interest
Although AT&T remains the majority owner of the company, TPG Capital has a significant minority ownership stake in the company.
What This Means for Customers
This ownership structure between the AT&T company and TPG Capital does not affect in any way DirecTV Stream for now or in the future for those who subscribe to it.
However, AT&T currently retains full authority over the service and all the related operations and decisions. The New York Observer stated that TPG Capital is merely a financial investor with limited control over the company’s strategies.
Existing DirecTV Stream customers can keep on using their service as they have been in the past. Since AT&T is still the main owner, we are likely to receive the same quality of service. Future developments will also continue to match their priority and vision as it was seen in the past.
There might be some changes in the longer term due to TPG Capital activities that are likely to be oriented on profit-making and financial performance. However, customers will not visibly or tangibly notice or experience the difference of the minority investor.
The Future Direction of DirecTV Stream
Still, it has been reported that AT&T is still determined to develop the DirecTV Stream service, even if they had to surrender some of their control to TPG Capital. It remains relevant to their video and streaming video strategies.
DirecTV Stream has been defined by AT&T as the future of its high-end video services. Although they suffered great losses in their satellite TV subscribers, their streaming service has been on the rise. Building up its streaming product will be crucial for the video distribution of AT&T in the future.
Thus, although there will be occasional changes in ownership and financial decisions, customers will continue to receive further investments in the DirecTV Stream service from AT&T’s side.
The inclusion of TPG Capital’s skills can also bring some insights in addition to those of other partners. However, in the end, AT&T will be the one to set the direction and the long-term plan for the product they created and in which they hold the majority stake.
In Conclusion
DirecTV Stream service is now owned with equal parts between original owners AT&T and new minority owner TPG Capital private equity group. However, AT&T owns 70% of the venture and controls it.
This shift of ownership does not affect customers and subscribers in the short run much. AT&T solely operates and develops the video streaming service to fit its plans and objectives in the future.
However, TPG Capital’s participation may slightly alter objectives over time that are more centered on profit and returns than growth. Nevertheless, customers will not be able to notice these minor shifts in the strategy on the service side.
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