(Reuters) – Hulu is buying back wireless carrier AT&T Inc’s 9.5 percent stake in the U.S. entertainment streaming service in a deal valued at $1.43 billion, the two companies said on Monday.
FILE PHOTO: The AT&T logo is pictured during the Forbes Forum 2017 in Mexico City, Mexico, September 18, 2017. REUTERS/Edgard Garrido/File Photo
Hulu, which competes with Netflix Inc and Amazon.com’s Prime Video, has more than 25 million subscribers and is expected to lose $1.5 billion in the current fiscal year.
The deal implies Hulu’s total value is some $15 billion – up from a reported $5.8 billion in 2016, when Time Warner – now a part of AT&T – bought the stake. Netflix at the time had a market capitalization of about $41 billion