Hulu Now Valued at $15 Billion

Hulu logo

CBJ — Hulu has bought back AT&T’s stake in the U.S. entertainment streaming service for $1.43 billion, in a deal that values Hulu at $15 billion.

The sale of AT&T’s 9.5% stake to Hulu in a cash deal gives Walt Disney more control. It holds a 60% stake in Hulu through a joint business venture.

Comcast’s NBC Universal has a 30% ownership 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 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 risen from a reported $5.8 billion in 2016, when Time Warner — now a part of AT&T — bought the stake. Netflix at the time had a market capitalization of about $41 billion but is now valued at about $152 billion.

@CanBizJournal

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