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Thread: Hulu buys back AT&T’s minority share of streaming service for $1.4B

  1. #1

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    Hulu buys back AT&T’s minority share of streaming service for $1.4B

    https://www.fiercevideo.com/video/hu...rvice-for-1-4b

    Hulu today announced that it has bought back AT&T’s minority share of its streaming service in a transaction that has already been approved and closed.

    The company said the transaction valued Hulu at $15 billion, with AT&T’s 9.5% interest valued at $1.43 billion. Hulu is the entity purchasing AT&T’s shares, and Hulu’s owners (Disney and Comcast) now have a window of time to allocate the shares.

    “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, in a statement. ....

    Hulu, which has been a significant money loser for Disney, Comcast and AT&T, is projected to see its operating losses peak this year at $1.5 billion and then achieve profitability by 2023 or 2024.


    Part of this article mentions profitability of Hulu as a factor.

  2. #2

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    https://www.fiercevideo.com/video/co...-disney-report

    Update there are talks that Comcast would sell its 30% share of Hulu to Disney

    After AT&T recently exited Hulu by selling its 9.5% stake back to the streaming service, Comcast reportedly is considering an exit, which would give Disney full control of Hulu.

    According to CNBC, Disney and Comcast are in talks about deal, which is leading Comcast to actively consider the pros and cons of selling its interest in Hulu.

    One big consideration mentioned by the report is valuation for Hulu. Comcast on one hand could be convinced to keep its 30% Hulu stake given the service’s rise in valuation. As the report points out, Hulu’s value has climbed from $5.8 billion to $15 billion since mid-2016. But much of that gain has occurred in the past few months. In November 2018, Disney said in a regulatory filing that Hulu was worth approximately $9.3 billion. But after AT&T earlier this month sold its stake in Hulu for $1.43 billion, Hulu’s valuation jumped to $15 billion.


    Comcast also is considering reasons to keep its stake, like the ability to maintain board seats, some control over Hulu and leverage over Disney, its close competitor. But, the company is also thinking about factors like Hulu's ongoing losses as reasons to sell.

    Hulu has historically been a money loser for its owners. Disney predicted those operating losses will peak this year at $1.5 billion, and that Hulu will achieve profitability by 2023 or 2024. Disney also predicts that Hulu will grow to between 40 million and 60 million subscribers (it’s currently at 25 million) by 2024.

  3. #3

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    https://deadline.com/2019/05/disney-...st-1202614392/

    Now Disney gets Full control of Hulu as a result of the Disney/Fox and Disney getting Comcast shares of Hulu.

    UPDATED with Bob Iger statement. Disney and Comcast announced today that Disney will assume full operational control of Hulu, adding a crucial chess piece in one of the most serious efforts by a traditional media player to take on Netflix.

    The companies entered into a “put/call” agreement regarding NBCUniversal’s 33% ownership interest in Hulu. The deal puts a minimum future valuation on Hulu of $27.5 billion, with control transferring to Disney immediately and the financial transaction slated to take effect in 2024.

    Reporters gathered in New York for the Disney upfront press conference were startled by the news, announced verbally by a Disney rep as the event was beginning and the press release was hitting the wire. At the same time, it had also been widely expected given Disney’s strategic push into streaming and its description of Hulu as one of “three legs of the stool” along with Disney+ and ESPN+. Disney+ is set to launch in November. The $7 price point of Disney+ and the lowering of Hulu’s basic, ad-supported service to $6 a month are both noteworthy moves in an industry-wide bid to slow the momentum of Netflix.

  4. #4

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    i wonder if Comcast is either gonna lauch their own Netflix killer or just buyout Netflix and allow it to be their streaming service.

  5. #5
    Quote Originally Posted by Will_H_69_9 View Post
    i wonder if Comcast is either gonna lauch their own Netflix killer or just buyout Netflix and allow it to be their streaming service.
    It would cost at least $150 Billion to buy Netflix. That's a bit out of Comcast's range.'

    Right now, Comcast is bundling Netflix into its Xfinity package.

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