Why Did AT&T Sell Its Stake in Hulu? – Market Realist


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.

Why Did AT&T Sell Its Stake in Hulu?

Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

Hulu’s control

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.

ALSO READ   UPS Seeks More Than $2 Billion in Damages Over TNT Bid



READ SOURCE

Leave a Reply