Sept 30 (Reuters) - AT&T ( T ) said on Monday it would

sell its entire 70% stake in satellite TV provider DirecTV to

private equity firm TPG for $7.6 billion, exiting a

business marked by declining distributions for the telecom

operator.

AT&T ( T ), which acquired DirecTV in 2015, signed a joint-venture

agreement with TPG in 2021, in which the private equity firm

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 comes as a much-needed exit for AT&T ( T ), which

has been seeing dwindling distributions from DirecTV over the

past several years. For the year ended Dec. 31, distributions

stood at $2.04 billion, down from $2.65 billion a year earlier.

For 2024, AT&T ( T ) said it expects DirecTV distribution payments

to be about $3 billion in aggregate.

The sale would also allow AT&T ( T ) to focus on its core wireless

and fiber connectivity operations and help improve its balance

sheet.

Shares of AT&T ( T ) were marginally up in premarket trading.

AT&T ( T ) would receive an initial payment of $2 billion in 2025,

and additional payments through 2029, the company said in a

filing on Monday. The deal is expected to close in the second

half of 2025.

Upon closing, DirecTV will continue to be led by its current

management team, including CEO Bill Morrow, TPG said on Monday.