AT&T Sells 9.5% Stake in Hulu for $1.43B

Disney tightens its grip on Hulu, sparking speculation on what Comcast/NBCU will do.

Jeff Baumgartner, Senior Editor

April 15, 2019

1 Min Read
AT&T Sells 9.5% Stake in Hulu for $1.43B

AT&T has sold its 9.5% stake in OTT video service provider Hulu for $1.43 billion.

The companies said the transaction values Hulu, which is majority owned by Disney, at $15 billion. They noted that the deal didn't require governmental or other third-party approvals, so it was simultaneously signed and closed.

The deal gives Disney even more control of Hulu, the company behind an SVoD and live TV streaming service with about 25 million subs combined. Disney, which will get deeper into the direct-to-consumer OTT game when it launches Disney+ on November 12, secured 60% of Hulu following the 21st Century Fox deal.

The AT&T sell-off to the Hulu joint venture could spark more speculation on whether Comcast/NBCU will also look to unload their 30% stake in Hulu.

AT&T, meanwhile, said it will use the proceeds from the divestiture, along with other planned sales of "non-core assets," to reduce its debt. The Hulu stake sale also arrives as AT&T's WarnerMedia unit prepares to launch a set of subscription-based, OTT-delivered VoD video services.

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— Jeff Baumgartner, Senior Editor, Light Reading

About the Author(s)

Jeff Baumgartner

Senior Editor, Light Reading

Jeff Baumgartner is a Senior Editor for Light Reading and is responsible for the day-to-day news coverage and analysis of the cable and video sectors. Follow him on X and LinkedIn.

Baumgartner also served as Site Editor for Light Reading Cable from 2007-2013. In between his two stints at Light Reading, he led tech coverage for Multichannel News and was a regular contributor to Broadcasting + Cable. Baumgartner was named to the 2018 class of the Cable TV Pioneers.

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