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

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FILE PHOTO: The AT&T logo is pictured during the Forbes Forum 2017 in Mexico City, Mexico, September 18, 2017. REUTERS/Edgard Garrido/File Photo

(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…



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