(Reuters) - AT&T said on Monday it would sell its 70% stake in satellite TV service DirecTV to private equity firm TPG for $7.6 billion, exiting a business marked by declining distributions for the telecom operator.
AT&T in 2021 signed a joint-venture agreement with TPG, which contributed about $1.8 billion in cash in exchange for a 30% stake in DirecTV that was valued at about $16 billion at the time.
The telecom company had agreed not to sell its stake in DirecTV for a three-year period, which expired on July 31.
The stake sale would allow AT&T to focus on its core wireless and fiber connectivity operations and help improve its balance sheet.
AT&T would receive an initial payment of $2 billion in 2025, and additional payments through 2029, the company said in a filing on Monday.
(Reporting by Deborah Sophia in Bengaluru; Editing by Shinjini Ganguli)