The US’ biggest telco has sold its minority stake in Hulu, raising cash to pay down its debt
AT&T has sold its minority stake in online content streaming service provider, Hulu, for $1.43 billion. AT&T offloaded its 9.5 per cent stake in the company, by selling it back to the joint venture. The transaction valued Hulu at $15 billion.
“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 has been on a much publicised quest to pay down its debt levels and has previously stated that it intends to pay off $20 billion of outstanding debt in 2019.
"We’re on track to get to the 2.5x debt-to-EBITDA range by year-end 2019. And as we’re nearing completion of our fibre build and making pricing moves on video, we’re laying the foundation for stabilizing our Entertainment Group profitability in 2019. Across the business, I like our momentum and feel confident that we’re on track to deliver on our plans,” said AT&T CEO Randall Stephenson.
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