AT&T (NYSE:T) is moving forward with plans for an auction of DirecTV, the New York Post says, even though a first round drew bids less than a third of what the telecom giant paid for the satellite broadcaster five years ago.
A handful of suitors has been invited to a second round of bidding, though the opening figures came in around 3.5 times EBITDA of about $4.5B - implying valuation of about $15.75B, the Post reports.
AT&T paid $49B (and assumed $18B in debt) for DirecTV in 2015.
And Dish Network (NASDAQ:DISH) reportedly isn't taking part in the bidding, though it was linked to a potential combination with DirecTV before.
That leaves private-equity firms (reportedly including Apollo Global Management (NYSE:APO)) who might try to see what can be squeezed out of the declining video service.