AT&T’s DirecTV will become an independent video service Reuters

(Reuters)-As part of the transaction between the wireless service provider and the acquisition company TPG Capital, AT&T Inc (NYSE:)’s satellite TV provider DirecTV will become an independent video business.

The video services division said on Monday that it will launch DirecTv Stream, which will allow its users to access streaming services such as Netflix (NASDAQ:), Amazon’s (NASDAQ:) Prime Video and HBO Max.

This move will enhance the status of the TV operator. Like its peers, the TV operator has been losing users of video streaming services, such as Netflix, Prime Video, and Apple (NASDAQ:) which provide award-winning services. Award-winning exclusive program service.

DirecTV said that as part of the transaction, customers who were previously AT&T satellite, streaming or IP video subscribers will be able to retain their video services and any bundled wireless or Internet services, including HBO Max.

AT&T agreed in February to sell about one-third of its shares in DirecTV to TPG Capital. The transaction valued the business at $16.25 billion, far below the 680 that AT&T paid for the asset less than six years ago. One hundred million U.S. dollars.

As AT&T’s investment in 5G and other wireless services increases, it has been under pressure to cut its swelling debt.

AT&T will own 70% of the new company and TPG will own 30%.