Hulu Just Bought its Stake Back from AT&T

It was announced this week that Hulu has purchased the 9.5% stake AT&T had in the streaming company for a whopping $1.43 billion.

Hulu is now valuated at $15 billion. It was last November that Disney valued the company at $9.3 billion in a filing.

The Los Angeles based company had been owned by Disney, 21st Century Fox Inc., Comcast and AT&T. After Disney’s purchase of 21st Century Fox Inc. assets, and Hulu buying the stake back from AT&T, there are now only two owners left.

Disney has a majority control of the company after it purchased Fox’s entertainment assets in March for $71 billion. Disney now owns 60% of Hulu.

Disney Chief Executive Officer Bob Iger has said he may be interested in acquiring the rest of Hulu.
AT&T said that it will use proceeds of the transaction to reduce its debt.

AT&T acquired the Hulu stake last year in its $85 billion takeover of Time Warner Inc., now called WarnerMedia, which will continue to supply programming to Hulu.

“We thank AT&T for their support and investment over the past two years and look forward to collaboration in the future,” Hulu CEO Randy Freer stated. “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.”

Disclaimer: We have no position in any of these companies and have not been compensated for this article.