Hulu buys back AT&T’s minority share of streaming service for $1.4B

Hulu today announced that it has bought back AT&T’s minority share of its streaming service in a transaction that has already been approved and closed.The company said the transaction valued Hulu at $15 billion, with AT&T’s 9.5% interest valued at $1.43 billion. Hulu is the entity purchasing AT&T’s shares, and Hulu’s owners (Disney and Comcast) now have a window of time to allocate the shares.“We thank AT&T for their support and investment over the past two years and look forward to collaboration in the future. 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,” said Hulu CEO Randy Freer, in a statement. AT&T, which had previously hinted at selling off its stake in Hulu, said it will use the proceeds, along with additional planned sales of non-core assets, to reduce its debt. Today’s deal again shifts the ownership structure for Hulu. Earlier this year Disney completed its $71.3 billion acquisition of certain 21st Century Fox assets and that included Fox’s 30% stake in Hulu. Disney now owns 60% of Hulu.