Hulu buys back AT&T's stake in $1.43 billion deal

(Reuters) - Hulu is buying back wireless carrier AT&T Inc's 9.5 percent stake in the streaming service company in a deal valued at $1.43 billion, the two companies said on Monday. The transaction valued Hulu at $15 billion. The company, which competes with Netflix Inc and Amazon.com's Prime Video, has more than 25 million subscribers and is expected to lose $1.5 billion in the current fiscal year.

Reuters April 16, 2019 04:05:25 IST
Hulu buys back AT&T's stake in $1.43 billion deal

Hulu buys back ATTs stake in 143 billion deal

(Reuters) - Hulu is buying back wireless carrier AT&T Inc's 9.5 percent stake in the streaming service company in a deal valued at $1.43 billion, the two companies said on Monday.

The transaction valued Hulu at $15 billion. The company, which competes with Netflix Inc and Amazon.com's Prime Video, has more than 25 million subscribers and is expected to lose $1.5 billion in the current fiscal year.

AT&T did not respond to a Reuters request for a comment on the structure of the deal.

Wall Street analysts were expecting Walt Disney Co, which holds a 60 percent stake in the joint venture that owns Hulu, to buy AT&T's stake.

Comcast Corp's NBCUniversal has a 30 percent stake. Based on the joint venture agreement, Disney and Comcast will get to decide on how they want to allocate the shares bought from AT&T.

Meanwhile, the wireless carrier said it will use the proceeds http://pdf.reuters.com/htmlnews/htmlnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20190415:nBw2r0mxza from the deal to cut down its debt, which stood at $176.51 billion at the end of 2018.

AT&T said in November it could consider selling its stake in Hulu and review its non-core assets in 2019 as in an effort to cut its pile of debt.

Disney last week forecast Hulu's subscribers to reach 40 million to 60 million by fiscal 2024 and become profitable in the United States by either 2023 or 2024.

(Reporting by Vibhuti Sharma in Bengaluru; Editing by Arun Koyyur)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Canada will continue to stand up against Chinese human rights abuses, PM Trudeau says
World

Canada will continue to stand up against Chinese human rights abuses, PM Trudeau says

OTTAWA (Reuters) - Canadian Prime Minister Justin Trudeau on Friday said he will continue to stand up against China's "coercive diplomacy" and its human rights abuses in Hong Kong and Xinjiang after being rebuked by Beijing for similar comments earlier this week. "We will stand up loudly and clearly for human rights all around the world, whether it is talking about the situation faced by the Uighurs, whether it is talking about the very concerning situation in Hong Kong, whether it's calling out China for its coercive diplomacy," Trudeau said in a news conference. (Reporting by Steve Scherer and Julie Gordon, Editing by Franklin Paul)

Young people in France: 'Don't make us scapegoats for COVID-19'
World

Young people in France: 'Don't make us scapegoats for COVID-19'

By Caroline Pailliez PARIS (Reuters) - Solene Tissot, a 19-year-old student in Paris, will obey the curfew imposed to fight COVID-19, but she has one request for her country's leaders: don't blame young people for the second wave of the virus. "There's been this kind of assigning guilt to young people," she said on Friday, hours before the new curfew was to come into force in Paris and major French cities. "I reject that." After a lull over the summer, the rates of transmission of coronavirus are going up in many parts of Europe and officials have identified social interactions between young people as a source of the resurgence.

Wider Image: Jailed Philippine activist lays to rest her three-month-old baby
World

Wider Image: Jailed Philippine activist lays to rest her three-month-old baby

By Adrian Portugal and Eloisa Lopez MANILA (Reuters) - Jailed Philippine activist Reina Mae Nasino wanted to hold her three-month-old daughter for the last time before she was laid to rest on Friday but she could not. Heavily armed prison officials guarding her refused to uncuff her despite pleas from her family and human rights supporters, who have decried what they described as inhumane treatment of Nasino and other mothers in Philippine jails.