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

sell its 70% stake in satellite TV service DirecTV to private

equity firm TPG for $7.6 billion, exiting a business

marked by declining distributions for the telecom operator.

AT&T ( T ) in 2021 signed a joint-venture agreement with TPG,

which 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 would allow AT&T ( T ) to focus on its core

wireless and fiber connectivity operations and help improve its

balance sheet.

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.

(Reporting by Deborah Sophia in Bengaluru; Editing by Shinjini

Ganguli)