Hulu Buys AT&T’s Minority Stake in Joint Venture
DALLAS & SANTA MONICA, Calif.--(BUSINESS WIRE)--Apr 15, 2019--AT&T ( NYSE:T ) and Hulu today announced an agreement by which AT&T has sold its minority stake in Hulu back to the streaming video joint venture. The transaction valued Hulu at $15 billion, with AT&T’s 9.5% interest valued at $1.43 billion. The transaction did not require any governmental or other third-party approvals and was simultaneously signed and closed.
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“We thank AT&T for their support and investment over the past two years and look forward to collaboration in the future. WarnerMedia will remain a valued partner to Hulu for years to come as we offer customers the best of TV, live and on demand, all in one place,” said Hulu CEO Randy Freer.
AT&T will use proceeds from this transaction, along with additional planned sales of non-core assets, to reduce its debt.
Hulu is the leading premium streaming service offering live and on-demand TV and movies, with and without commercials, both in and outside the home. Launched in 2008, Hulu has grown to more than 25 million subscribers in the U.S. and is the only service that gives viewers instant access to current shows from every major U.S. broadcast network; libraries of hit TV series and films; and acclaimed Hulu Originals like Emmy® and Golden Globe Award-winning series The Handmaid’s Tale, Emmy Award-nominated The Looming Tower, Shrill, The Act, Marvel’s Runaways and Castle Rock, as well as live news, entertainment and sports from 21st Century Fox, The Walt Disney Company, NBCUniversal, CBS Corporation, The CW, Turner Networks, A+E Networks and Discovery Networks – all in one place. Upcoming Hulu Originals include Catch-22 from George Clooney ; Four Weddings and a Funeral from Mindy Kaling ; Wu-Tang: An American Saga from Brian Grazer and The RZA; Ramy from Jerrod Carmichael and Ramy Youssef and Little Fires Everywhere from Reese Witherspoon and Kerry Washington.
AT&T Inc. ( NYSE:T ) is a diversified, global leader in telecommunications, media and entertainment, and technology. It executes in the market under four operating units. WarnerMedia’s HBO, Turner and Warner Bros. divisions are world leaders in creating premium content, operate one of the world’s largest TV and film studios, and own a world-class library of entertainment. AT&T Communications provides more than 100 million U.S. consumers with entertainment and communications experiences across TV, mobile and broadband services. Plus, it serves nearly 3 million business customers with high-speed, highly secure connectivity and smart solutions. AT&T Latin America provides pay-TV services across 11 countries and territories in Latin America and the Caribbean, and is the fastest growing wireless provider in Mexico, serving consumers and businesses. Xandr provides marketers with innovative and relevant advertising solutions for consumers around premium video content and digital advertising through its AppNexus platform.
AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc. Additional information is available at about.att.com. © 2019 AT&T Intellectual Property. All rights reserved. AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates, expectations about programming and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. Such differences may result from actions taken by either company, as well as from developments beyond each company’s control, including changes in competitive conditions; consumer preferences; international, political developments; and changes in domestic and global economic conditions. A discussion of factors that may affect future results is also contained in AT&T’s filings with the Securities and Exchange Commission. Each of AT&T and Hulu disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.
This news release may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company’s website at https://investors.att.com.
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PUB: 04/15/2019 05:12 PM/DISC: 04/15/2019 05:12 PM