Hulu has paid $1.43 billion to buy AT&T’s minority stake in the streaming video company.
The companies announced Monday that the transaction valued Hulu at $15 billion. As a result, AT&T’s 9.5 percent stake in Hulu was worth $1.43 billion.
The valuation is two-thirds higher than last November when Disney reported in a regulatory filing that the streaming video company was worth $9.26 billion. Hulu is owned through by Hulu LLC, a joint venture of Disney and Comcast. Disney now has a 67 percent ownership of Hulu, which it gained, in part, through its $71 billion acquisition of 21st Century Fox. Comcast has a 33 percent stake in Hulu.
AT&T, which has been hinting about selling its minority stake in Hulu since November, will use proceeds from this transaction, along with additional planned sales of non-core assets, to reduce its debt.
“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,” Hulu CEO Randy …read more