Hulu has bought 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.
The transaction did not require any governmental or other third-party approvals and was simultaneously signed and closed.
“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.
The sale of AT&T’s 9.5 percent stake to Hulu in a cash deal gives Walt Disney Co, which holds a 60 percent stake in Hulu via a joint venture, more control of the company.
Comcast’s NBCUniversal has a 30 percent stake in Hulu.
AT&T, which is preparing to launch its own subscription streaming video service later this year, said that its unit WarnerMedia would continue to work with Hulu to deliver content over the platform.