After losing over $50 billion on a series of failed forays into content production and distribution, AT&T was forced to start selling stakes in its recently acquired media assets or risk weakening its monopolistic grip on telecom and internet delivery.
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.
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.
Since first delivering DVDs to homes via the postal service, Netflix has come to dominate the SVOD market. The streamer has 67 million subscribers in North America, which takes its total to nearly 160 million worldwide.
After losing U.S. subscribers in the second quarter, for the first time since 2011, Netflix finally admitted that the arrival of new streaming services from Disney, Apple, and others would hurt subscriber growth.