Fulfilling regulatory obligations of the mega merger with the media behemoth, comms giant AT&T has sold the minority stake in the Hulu OTT service that it gained through acquiring WarnerMedia back to the joint venture.
With AT&T’s 9.5% interest worth at $1.43 billion, the transaction values Hulu at $15 billion. The comms provider noted that the transaction did not require any governmental or other third-party approvals and was simultaneously signed and closed.
Launched in 2008 as a J/V between Disney, 21st Century Fox and TimeWarner, Hulu has grown to more than 25 million subscribers, adding eight million in 2018 alone. The divestment by AT&T of the TimeWarner share, about 9.5% of the Hulu business, now means that it is now 70%-owned by Disney, following its takeover of Fox's assets, and 30% by Comcast.
“We thank AT&T for their support and investment over the past two years and look forward to collaboration in the future,” said Hulu CEO Randy Freer commenting on the sale. “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.” For its part, AT&T said that it will use proceeds from the transaction, along with additional planned sales of non-core assets, to reduce its debt following its mega acquisition.
Launched in 2008 as a J/V between Disney, 21st Century Fox and TimeWarner, Hulu has grown to more than 25 million subscribers, adding eight million in 2018 alone. The divestment by AT&T of the TimeWarner share, about 9.5% of the Hulu business, now means that it is now 70%-owned by Disney, following its takeover of Fox's assets, and 30% by Comcast.
“We thank AT&T for their support and investment over the past two years and look forward to collaboration in the future,” said Hulu CEO Randy Freer commenting on the sale. “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.” For its part, AT&T said that it will use proceeds from the transaction, along with additional planned sales of non-core assets, to reduce its debt following its mega acquisition.
