Disney is close to owning a majority stake in Hulu, and now the company is looking to expand it by buying AT & Ts's 10 percent stake in the streaming service.
Disney is in active conversations with AT & T to buy his stake in Hulu, according to Variety. Sales will apparently have net AT&T close to $ 1 billion and give Disney up to 70 percent ownership in Hulu. Disney already owns 30 percent of Hulu, and it is about to acquire 21st Century Fox, which owns an additional 30 percent.
AT & T managers have talked about a sale in the past and announced in a November conference in November that the company was interested in selling its minority share.
It's a strong move for both companies: AT&T can spend the estimated $ 960 million to pay off over the excessive debt (about $ 1
AT & T is focused on WarnerMedia's upcoming streaming service, but Disney has two services: Hulu and Disney +. Disney + will launch later this year and wear exclusive Disney movies and TV shows, but it will start home first and still have to accept its family-friendly brand. Getting a majority stake in Hulu can help the company take the streaming service internationally and cater to a more mature audience. That's something CEO Bob Iger has been talking about in previous conversations with investors.
"After the deal closes and after we have 60 percent ownership, we meet the Hulu management and the board, and discuss what opportunities are both global growth and investing more in content," said Iger in November.
The other company, with a 30 percent stake in Hulu, is not likely to sell its slice of the company ever soon. Steve Burke, CEO of NBC Universal, owned by Comcast, recently told investors that the company is not interested in selling its business. 30 percent stake in streaming service at any time.