Disney in Active Talks With AT&T to Acquire WarnerMedia’s 10% Hulu Stake

Disney wants to get even more control over Hulu: The company is in active discussions with AT&T to acquire the 10% stake that WarnerMedia owns in the streaming joint venture, Variety has learned.A knowledgeable source confirmed the talks, which come as Disney heads down the homestretch in gaining regulatory approvals to buy 20th Century Fox. Once that closes, Disney would pick up Fox’s 30% ownership share in Hulu. Meanwhile, AT&T on Tuesday prevailed in a court challenge by the Department of Justice, which was attempting to block its takeover of Time Warner.Reps for Hulu and AT&T declined to comment. Disney didn’t respond to a request for comment.Disney currently holds a 30% stake in Hulu, as does Comcast/NBCUniversal — which is not prepared to exit the JV at this point. “Disney would like to buy us out,” NBCU CEO Steve Burke told Variety last month. “I don’t think anything’s going to happen in the near term.” Word that Disney is negotiating to buy out WarnerMedia’s stake in Hulu isn’t a surprise. AT&T execs have said the company has been considering selling the Hulu stake, which Time Warner acquired in 2016. AT&T CFO John Stephens, at the telco’s analysts day last November, cited its minority investments “in things like Sky Mexico or Hulu” as potential assets it could sell to gain working capital ��� as well as cash to help pay down the debt it assumed with the Time Warner deal. Also note that WarnerMedia/Time Warner has never held a Hulu board seat.