Streaming service company Hulu is buying back wireless carrier AT&T Inc’s 9.5% stake in the company in a deal valued at $1.43 billion, the two companies said on Monday.
The transaction valued Hulu at $15 billion. AT&T said it will use proceeds from the deal to cut down its debt. The $15 billion valuation represents an increase over the previous $9.3 billion valuation that Disney laid out in a regulatory filing related to its acquisition of 21st Century Fox assets.
Before the deal, Disney owned 60% and Comcast owned 30% of Hulu.
“We thank AT&T for their support and investment over the past two years and look forward to collaboration in the future,” Hulu CEO Randy Freer said in a press release. “WarnerMedia will remain a valued partner to Hulu for years to come as we offer customers the best of TV, live and on demand, all in one place.”
Hulu’s streaming service had strong growth in 2018, adding 8 million customers to reach 25 million subscribers. The subscription VOD service offers both ad-supported and ad-free tiers, as well as live television through its vMVPD offering.
Disney has said it plans to pursue complete ownership of Hulu, and “will likely” bundle Disney Plus, Hulu, and ESPN Plus at a discount.
Insider Picks writes about products and services to help you navigate when shopping online. Insider, Inc. receives a commission from our affiliate partners when you buy through our links, but our reporting and recommendations are always independent and objective. I’ll be the first to admit that I have a severely temperamental relationship with running. When...
New Google Cloud CEO Thomas Kurian was hired for his enterprise sales chops — something that the search giant’s growing cloud division needs, say experts. But for a company like Google Cloud that has long been engineering focused, a “culture clash” could be brewing, says Forrester vice president and principal analyst Dave Bartoletti, even as...