The transaction values the streaming service, which competes with Netflix and Amazon, at $15 billion.
The telecommunications giant is loaded down with $171 billion in debt, following its $85 billion acquisition of Time Warner in June of 2018. AT&T has been looking for ways to shed non-core assets and reduce its debt load. The sale of AT&T's 9.5% stake in Hulu won't impact the streaming service's long-term agreements to carry WarnerMedia's networks on its Hulu+ Live TV service, which include TBS, Cartoon Network and TNT.
"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,” Hulu CEO Randy Freer said in a statement. The Walt Disney Co. gained a controlling interest in Hulu with its acquisition of most of 21st Century Fox's film and television assets. It shares an ownership stake with Comcast's NBCUniversal.The decade-old Hulu service has 25 million subscribers, and is expected to lose about $1.5 billion this year. Disney expects it to break even by 2024, as it expands to new markets and grows its subscriber base to an estimated 40 to 60 million subscribers.
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