Hulu buys back AT&T's 9.5 percent stake
Hulu has bought back the minority share AT&T held in the streaming video firm. The two companies have come to an arrangement which sees Hulu purchasing AT&T's minority stake for $1.43 billion.
Buying the 9.5 percent stake at this price values Hulu at $15 billion. The deal gives even greater control to Walt Disney Co, which holds a 60 percent stake in Hulu as part of a joint venture.
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The deal between AT&T and Hulu does not require government approval or consent from other third parties. As such it was signed and closed simultaneously. AT&T is to use the proceeds of the sale to reduce its debts.
Speaking about the deal, Hulu CEO Randy Freer said:
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.
As part of their joint venture, Disney and Comcast will now decide how the shares acquired from AT&T should be distributed.
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