The Turner networks and HBO are among the assets included in the deal.
This move gives AT&T some cash to pay down debt, and may have other flexibility benefits for both AT&T and the new DirecTV entity.
Those with AT&T or DirecTV packages in Seattle, Dayton, Eureka and Yuma may need to find alternate ways to watch the Super Bowl Sunday.
This affects ABC, Fox, NBC and CBS stations, but the CBS stations in Seattle and Dayton may be particularly important for the Super Bowl.
AT&T may wind up not selling off all of DirecTV, but rather only a minority stake.
This was certainly an unusual advertising move.
These latest layoffs are expected to affect around 20 employees in Bleacher Report's UK office.
AT&T bought DirecTV for $49 billion in 2015, but may only get $20 billion for it now.
It's hard to see this trend reversing in the future, either.
Channels including ESPN, NBCSN and FS1 all weren't working in high definition for many DirecTV subscribers Saturday.
AT&T and DirecTV has Sunday Ticket until 2022.
Another ACC Network holdout bites the dust.