AT&T said it sold its 42% stake in Game Show Network, giving Sony Pictures Entertainment 100% ownership of the channel.
The deal is worth $500 million, with AT&T getting $380 million for its stock and dividends of about $130 million, the companies said.
After the sale, the network will continue to be carried by AT&T's DirecTV unit. Debt-laden AT&T has been selling off its non-core assets under pressure from activist investor Elliott Management.
Game Show network will continue to be managed by Sony, which had owned 58% of the channel, with Mark Feldman remaining president and CEO.
“We’re excited to bring Game Show Network fully into the Sony Pictures Entertainment portfolio,” said Sony Pictures Television chairman Mike Hopkins in a statement. “The acquisition allows us to work more closely with the company’s talented team to deliver the best iconic game shows, develop and syndicate new game show IP for audiences across the nation, as well as to advance the fast-growing GSN Games business, all of which directly aligns with our strategy of developing targeted direct-to-consumer offerings.”