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AT&T sells Hulu stake for $1.43Bn, would use proceeds to reduce debts

The sale will offer Disney a 66% hold on the TV streaming service while Comcast will own the remaining 33% stake.

U.S. telecom giant, AT&T Inc. has recently sold its roughly 10% stake in TV streaming company Hulu for $1.43 billion dollars, giving the streaming firm a valuation of around $15 billion.

According to The Verge, the AT&T sale will offer partner Disney with a staggering 66% of the service while Comcast will own 33% of remaining stake. Commenting on the move, AT&T said that the company will use the acquired transaction proceeds to reduce its current debts.

For the record, Hulu was divided evenly between Disney, Comcast and Fox in 2018, each owning a 30% cut of the streaming firm, alongside AT&T’s roughly 10% stake. However, Disney gained a controlling interest in Hulu recently when it acquired Fox.

Sources suggest that Disney gaining more control over Hulu could likely mean a radical shift in the streaming firm’s offering. Currently, the service offers streaming content from a wide range of providers, including Comcast-owned Universal and NBC, and AT&T-owned networks like TNT and TBS.

However, as AT&T will no longer be in the game, it is easy to imagine that the company will pull its shows entirely in favor of its own streaming efforts. Additionally, if Comcast follows AT&T’s footsteps, it could leave Hulu as a dedicated Disney service that compliments the upcoming $7-a-month Disney+.

Incidentally, Disney had hinted at the possibility of such an occurrence with the company recently highlighting the different roles it intends for Disney+ and Hulu, with the streaming service offering more mature content, and even the potential for a joint bundle.

While the move will positively influence Disney, it signifies a decidedly less interesting future for consumers, as one of the last streaming services to offer cross-network content will be divided leading to consumers paying more monthly fees to watch all their shows.
Saloni Walimbe:

An avid reader since childhood, Saloni Walimbe boasts of a post graduate MBA-Marketing qualification under her belt. She is currently following her passion for content creation by penning down insightful articles on express-journal.com, related to the latest industry and business happenings. She has also spent two years as a content writer in the advertising field. Aside from her professional work, she is an ardent animal lover and enjoys movies, music and books in her spare time. she can be contacted at- saloni.w@express-journal.com | https://twitter.com/WalimbeSaloni/

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