AT&T sold its stake in Hulu
Mobile carrier AT&T (T) and online streaming service Hulu struck a cash deal on Monday, wherein AT&T agreed to sell its stake in Hulu, which is also owned by Comcast (CMCSA) and Walt Disney (DIS). Hulu has repurchased AT&T’s 9.5% stake in the US-based streaming service for $1.43 billion. The deal values Hulu at $15 billion.
The sale of AT&T’s stake will be allocated to Disney and Comcast, according to the joint venture agreement. However, the company is expected to continue working with Hulu to deliver content over the platform.
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Hulu is controlled by Disney, Comcast’s NBCUniversal, and AT&T’s WarnerMedia. Disney had a 60% stake in Hulu, while Comcast owned a 30% stake. AT&T had a minor 10% share in Hulu. Therefore, AT&T decided to sell off its small stake to Hulu, which could also help the company to reduce its debt, which was more than $170 billion at the end of 2018.
The sale of AT&T’s stake to Hulu will most likely give Disney more control of the company. Disney earlier had a 30% stake in Hulu. The acquisition of Fox assets made Disney the owner of 60% of Hulu, as Fox owned 30% in Hulu. Disney plans to expand Hulu internationally and enhance its content with Marvel superheroes. Disney is working with Hulu to offer four adult animated series from its Marvel Studios.