DirecTV has formally spun out from below AT&T, cementing a separation that was first introduced in February and clearing a path ahead for the satellite tv for pc tv firm to soak up all of AT&T’s streaming belongings.

The deal was executed by AT&T in collaboration with TPG Capital, the personal fairness arm of world asset agency TPG, and comes six years after AT&T acquired DirecTV for $67 billion.

Under the banner of its new product, DirecTV Stream, DirecTV will deliver collectively all video streaming providers beforehand launched by AT&T, with the notable exceptions of WarnerMedia’s HBO Max streaming platform and regional sports activities networks, each of that are topic to a pending WarnerMedia-Discovery deal. The separation deal will see DirecTV double down on its dedication to satellite tv for pc prospects and sports activities followers, with DirecTV Stream retaining the unique rights to the favored streaming entity NFL Sunday Ticket.

As you would possibly recall, AT&T tried the streaming service factor with out a lot success. DirecTV Now, AT&T Now, and AT&T TV all whiffed upon launch. AT&T TV is now a part of DirecTV, although it’s unclear whether or not DirecTV Stream can be a totally revamped product or only a renamed one. There can be no pricing info but.

AT&T hit peak subscription losses in 2019, and though it has since regained some floor on premium video internet losses and subscriber churn, the model had been hemorrhaging prospects for years and had racked up appreciable money owed. In a February press release saying the separation, AT&T stated that it believed that spinning out its streaming belongings into a brand new entity would supply “…greater focus, flexibility and resources to best position the business to succeed in the long term and deliver on its commitment to customers, employees and shareholders.”

In a press release on the time, AT&T CEO John Stankey stated that the choice to create a standalone firm “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.”

“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,” Stankey stated. “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 retain a 70% possession stake of the brand new firm, with TPG retaining 30%.