AT & T sold its stake in Hulu
Mobile operator AT & T (T) and online streaming service Hulu struck a cash deal Monday, where 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 $ 1.43 billion US based streaming service. The deal values Hulu to $ 15 billion.
The sale of AT & T's ownership will be allocated to Disney and Comcast, under the joint venture agreement. However, the company is expected to continue working with Hulu to deliver content across the platform.
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Hulu is controlled by Disney, Comcasts NBCUniversal and AT & Ts WarnerMedia. Disney had a 60% stake in Hulu, while Comcast owned a 30% stake. AT&T had a smaller 10% stake in Hulu. Therefore, AT & T decided to sell its small stake in Hulu, which could also help the company reduce its debt, which was over $ 170 billion by the end of 2018.
The sale of AT & T's ownership to Hulu is likely to Disney more control over the company. Disney previously had a 30% stake in Hulu. The acquisition of Fox assets made the Disney owner 60% of Hulu, which Fox owned 30% in Hulu. Disney plans to expand Hulu internationally and improve its content with Marvel superheroes. Disney works with Hulu to offer four adult animated series from Marvel Studios.