AT&T exits Hulu by selling minority stake for $1.43 bn
MUMBAI: Telecom and media giant AT&T has exited streaming service Hulu by selling its 9.5% stake for $1.43 billion. The transaction values the streaming platform at $15 billion.
AT&T’s exit means that Hulu will now be controlled by Walt Disney and Comcast. Disney and Comcast which owns NBCUniversal are the other shareholders in Hulu.
The transaction did not require any governmental or other third-party approvals and was simultaneously signed and closed. The move comes ahead of WarnerMedia’s move to launch a streaming service next year. It will be beta tested later this year.
“We thank AT&T for their support and investment over the past two years and look forward to collaboration in the future. 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,” said Hulu CEO Randy Freer.
AT&T will use proceeds from this transaction, along with additional planned sales of non-core assets, to reduce its debt.