Hulu has reportedly purchased back AT&T’s 9.5% stake in the video streaming company for $1.43 billion. This would give Hulu a valuation of $15 billion. The transaction was announced earlier this week.
Even though the video streaming space is becoming increasingly competitive with both Apple and Disney entering the space, Hulu has been steadfast at growing in value. One of Hulu’s latest major promotions is a subscription partnership with Spotify that offers access to premium services for both platforms at a price of $9.99. Without the Spotify bundle, Hulu offers packages ranging from $6 per month to a live TV service at $45 per month.
As of November, Hulu’s valuation was at about $9.26 billion based on a regulatory filing from Disney. Following this deal, Disney and NBCUniversal’s parent company Comcast are now Hulu’s only owners. Hulu is not yet profitable.
It has been reported that Comcast owns 30% of Hulu and Disney now owns 60% — which includes the 30% it gained after acquiring 21st Century Fox.
There are rumors that Comcast is interested in selling ownership of its stake in Hulu as well. This would make Disney the only owner of Hulu. If this does happen, then it seems likely that Hulu will heavily feature Disney programs. NBCUniversal is expected to set up its own streaming service next year.
AT&T is going to use the proceeds from this sale to reduce its debt. Last year, AT&T acquired HBO’s parent company Time Warner. HBO also has its own streaming service.
In a statement, Hulu CEO Randy Freer said AT&T WarnerMedia is going to continue providing content to Hulu and remain a “valued partner.”
AT&T gained ownership in Hulu after it acquired Time Warner. Time Warner had invested $583 million in Hulu back in 2016. And Time Warner is planning to launch its own streaming service this year as well.
