AT&T's John Stankey Denies Plan to Sell DirecTV

AT&T Inc.’s chief operating officer defended the company’s strategy in the media business and said it doesn’t plan to sell its DirecTV unit, viewing the satellite TV provider as central to its ambitions in streaming video, reports The Wall Street Journal.

In an interview, John Stankey said, “DirecTV is an important part of what we’re going to be doing going forward.”

The WSJ reported last week that AT&T was examining whether to part ways with DirecTV, and that the company had considered options such as a sale or spinoff.

John Stankey

Stankey said AT&T has studied its options for DirecTV as part of broader portfolio reviews. “We’re constantly looking at the portfolio,” he said. “That’s the normal course of business and it’s not unique to DirecTV.”

Elliott Management Corp., an activist investment firm that disclosed a significant stake in AT&T this month, has called on the company to shed assets and reassess its plans to transform into an entertainment colossus. AT&T bought DirecTV for $49 billion in 2015 and last year purchased Time Warner Inc. in a deal valued at $81 billion. Mr. Stankey said asset reviews have been done before Elliott went public with its concerns.

Although DirecTV has hemorrhaged subscribers as consumers cancel their TV service, Mr. Stankey said it would play a significant role when the company launches a subscription video-streaming product next year that brings together content from its WarnerMedia unit, which includes HBO and Warner Bros. AT&T is looking for traditional pay-TV distributors to be involved in rolling out the online service.

He also said DirecTV is an important part of the company’s advertising business, given the data it provides to allow for more targeted marketing.