AT&T has confirmed the sale of its remaining stake in DirecTV to private equity company TPG for $7.6 billion.

The carrier has decided to cash in on its 70 percent stake, in order to push ahead with its 5G network and fiber expansion, it noted today (September 30).

In a filing, AT&T revealed that the deal includes $1.7bn in pre-tax quarterly distributions in the second half of this year, plus $5.4bn in after-tax distributions in 2025. There will be a final payment of $500 million made in 2029.

DirecTV, which was founded in 1994 by Hughes Electronics, has about 11 million customers.

AT&T acquired the company DirecTV in 2015 for an estimated $67bn, including debt.

The carrier then spun off DirecTV, U-Verse TV, and DirecTV Stream into a separate entity, selling a 30 percent stake to TPG.

"Over the past three years, the company achieved financial outcomes consistent with its expectations that underpinned its decision to retain a 70 percent financial interest in DirecTV. Reported cash distributions at, and since, the closing of its initial transaction with TPG totaled $19 billion and the company expects to report an additional $7.6 billion of cash payments following this agreement to sell its remaining stake," said AT&T in a statement.

"This sale allows AT&T to continue to focus on being the leading wireless 5G and fiber connectivity company in America. This transaction also continues to strengthen AT&T’s balance sheet by pulling forward cash expected over the next several years."

The telco expects the deal to close in the second half of next year.

AT&T has pursued its fiber business heavily in recent months, and recently outlined plans to expand its fiber joint venture with Gigapower, beyond the initial 1.5 million locations announced in December 2022.

The carrier currently serves more than eight million fiber customers.

DirecTV separately agreed to buy EchoStar’s satellite television business today, which includes Dish TV, in a move that will see the combined businesses serve 20 million subscribers.