AT&T looking to ditch DirecTV, report says


AT&T is reportedly looking to offload DirecTV as a separate company or combined provider with Dish.

AT&T is looking into offloading broadcast satellite provider DirecTV, The Wall Street Journal reported Wednesday citing sources. It could be done as “a spin-off or combination with Dish,” CNBC also reported.

AT&T’s media content business has been struggling, losing 778,000 premium video users in the second quarter. Its streaming service DirecTV Now, which is being rebranded as AT&T TV Now, also lost another 168,000 users in the same quarter.

The company is also facing a lawsuit alleging it created fake customer accounts to make it look like DirecTV Now was seeing customer growth ahead of the company’s $85 billion Time Warner merger. The amended complaint, filed Friday in the US District Court for the Southern District of New York, alleges AT&T “encouraged” its employees to add the service to customers’ accounts without their knowledge.

Reference: CNN