AT&T’s decision to acquire a declining DirecTV in 2015 and a bloated WarnerMedia in 2018 were massive miscalculations. Desperate to pay down its debt, in March 2021, AT&T announced it would sell a 30% stake in DirecTV.
In a recent survey of over 5,000 active online subscribers in the United States and Canada, 81% of respondents wished that paid streaming services like Netflix or Amazon Prime Video offered a free, ad-supported option.
As a result of diminishing content availability precipitated by production delays and cancellations, there will be large programming gaps for traditional television networks and OTT platforms to fill over the next two years.
AT&T is desperate to sell some or all of DirecTV to pay down its $180 billion mountain of debt. According to inside sources, the satellite service is being offered at a $20 billion valuation, marking a $29 billion loss since 2015.