(Reuters) – Hulu is buying back wireless carrier AT&T Inc’s stake in the U.S. entertainment streaming service for $1.43 billion, in a deal that values Hulu at $15 billion, the two companies said on Monday.
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
The purchase of AT&T’s 9.5 percent stake in Hulu gives Walt Disney Co, which holds a 60 percent stake in Hulu via a joint venture, more control of the company.
Comcast Corp’s NBCUniversal has a 30 percent stake in Hulu. Based on the joint venture agreement, Disney and Comcast will decide how they want to allocate the shares bought from AT&T.
Hulu, 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.
Hulu’s total value has now risen from a reported $5.8 billion in 2016, when Time Warner – now a part of AT&T -…