AT&T Inc. was approached by private equity firm Apollo Global Management Inc. about a potential deal to spin off DIRECTV while still maintaining control of the satellite service, Fox Business reported, citing people familiar with the matter.
Under the proposed deal structure, satellite operator DISH Network Corp. will be folded into a new company that will include DIRECTV and be controlled by AT&T. Apollo will provide financing and hold a minority stake in the new company along with DISH.
AT&T and DISH representatives declined to comment but would not dispute that Apollo has made the pitch through an outside banker. AT&T insiders confirmed the pitch but said there are currently no active discussions with Apollo, according to the report.
The news comes two weeks after AT&T COO John Stankey squashed market speculation that the company is exploring a sale of its DIRECTV business.
