Why did AT & T sell its stake in Hulu?

AT & T sold its stake in Hulu

AT & T (T) mobile carrier and Hulu online streaming service signed a cash deal on Monday, in which AT & T agreed to sell its stake in Hulu, also owned by Comcast (CMCSA) and Walt Disney (DIS). Hulu bought AT & T's 9.5% stake in the US-based streaming service for $ 1.43 billion. The transaction values ​​Hulu at $ 15 billion.

The sale of AT & T's interest will be allocated to Disney and Comcast pursuant to the joint venture agreement. However, the company should continue to work with Hulu to broadcast content on the platform.

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The control of Hulu

Hulu is controlled by Disney, Comcast's NBCUniversal and AT & T's WarnerMedia. Disney owned a 60% stake in Hulu, while Comcast owned 30%. AT & T had a minor stake of 10% in Hulu. As a result, AT & T decided to sell its small stake in Hulu, which could also help the company reduce its debt to more than $ 170 billion by the end of 2018.

The sale of AT & T's stake in Hulu will likely give Disney more control over the company. Earlier, Disney had a 30% stake in Hulu. The acquisition of Fox's assets made Disney the owner of 60% of Hulu, while Fox owned 30%. Disney plans to expand Hulu internationally and enrich its content with Marvel Super Heroes. Disney is working with Hulu to offer four adult animated series from his Marvel studios.