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Photo: AaronP/Bauer-Griffin/GC Images

AT&T is spinning off three of its video services, including its satellite TV brand DirecTV, to create a new standalone video company called New DIRECTV.

Details: The company will be jointly owned by AT&T and private-equity giant TPG. AT&T will retain a 70% stake and TPG will own 30% of the firm.

  • The new company will also include AT&T's digital skinny bundle service "AT&T TV" and its internet-based TV service "U-Verse."
  • The business will be operated as a standalone and is expected to be removed from AT&T’s corporate financial statements, according to a statement announcing the deal.
  • New DIRECTV will be jointly governed by a board of five people. Two board members will be representatives from AT&T and two from TPG. A fifth seat will go to the CEO of the new company, which at closing will be Bill Morrow, CEO of AT&T’s U.S. video unit.

Why it matters: Activist investors have pressured AT&T to sell DirecTV, which the company bought for $49 billion in 2014. The satellite TV business has been in secular decline for years as viewers switch to streaming.

By the numbers: The deal will value the three units combined at an implied enterprise value of $16.25 billion, about 1/3 of what AT&T bought DirecTV for 7 years ago.

  • Upon close of the transaction, AT&T will receive around $7.8 billion in cash to pay down debt. Nearly $6 billion of that will come from money that the new company will borrow from banks and pay AT&T back.
  • TPG will pay $1.8 billion in cash for its 30% stake.

Be smart: AT&T has been selling smaller assets for months in an effort to offload debt from its $85 billion acquisition of Time Warner in 2018. AT&T said in a statement that it will use the proceeds from the DirecTV transaction to pay down its debt.

Go deeper: AT&T signals ceasefire with activist investor

Go deeper

Key inflation measure grew slower than expected in June

Illustration: Sarah Grillo/Axios

The price of goods and services rose 0.4% in June, slower than the 0.5% growth during May, according to the core personal consumption expenditures (PCE) price index released Friday morning. The June reading was lower than the consensus expectation for 0.6% growth.

Why it matters: The core PCE is the inflation measure the Federal Reserve watches most closely. June's reading is the second month in a row of decelerated price growth, giving the Fed breathing room to design a pullback strategy from its emergency market support.

2 hours ago - Health

Internal CDC presentation warns: "The war has changed"

Graphic: CDC via The Washington Post

Unpublished research indicates that the Delta variant causes more severe illness and spreads as easily as chickenpox, and that vaccinated people may transmit the strain as easily as those who are unvaccinated, according to an internal CDC presentation obtained by WashPost.

Why it matters: The data played a key role in the CDC's decision to tell vaccinated people to resume masking indoors, with the presentation calling on health officials to "acknowledge the war has changed," The Post reports.

Updated 2 hours ago - Sports

Olympics dashboard

Women's 5,000 meter heats at the Tokyo Olympics. Photo: Jewel Samad/AFP via Getty Images

🎾: Novak Djokovic defeated in Olympic semi-finals

🗓: The Olympic events to watch today

🏊‍♀️: South Africa's Tatjana Schoenmaker breaks world record in 200m breaststroke

🏊: Olympic swimmer Ryan Murphy wins Silver in 200m

🚣‍♀️: Team USA women's eight rowing fails to reach the podium

💻: Japan tests teleporting games and "remote cheering"

Go deeper: Full Axios coverage