Home / World / Hulu buys AT&T’s 9.5% stake in streaming service for $1.43 billion

Hulu buys AT&T’s 9.5% stake in streaming service for $1.43 billion


Hulu streaming service company is again buying the 9.5% share of wireless services company AT & T Inc. in a deal valued at $ 1.13 billion, the two companies said on Monday.

The transaction valued Hulu at $ 15 billion. AT & T said it will use the proceeds of the agreement to reduce its debt. The $ 15 billion valuation represents an increase over the previous $ 9.3 billion valuation that Disney presented in a regulatory filing related to the acquisition of the assets of 21st Century Fox.

Before the agreement, 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 collaborating in the future," Hulu CEO Randy Freer said in a press release. "WarnerMedia will continue to be a valuable partner for Hulu over the next few years, as we offer customers the best of television, live and on demand, all in one place."

The Hulu broadcast service had a strong growth in 2018, adding 8 million customers to reach 25 million subscribers. The VOD subscription service offers both advertising and free levels, as well as live television through its vMVPD offer.

Disney has said it plans to get the full ownership of Hulu, and "probably" will include Disney Plus, Hulu and ESPN Plus at a discount.

Source link