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    Disney, Comcast now Hulu’s only owners as AT&T exits

    By SHOOTUpdated:No Comments1851 Views
    This June 27, 2015, file photo, shows the Hulu logo on a window at the Milk Studios space in New York. (AP Photo/Dan Goodman, File)

    By Tali Arbel, Technology Writer

    NEW YORK (AP) --

    AT&T has sold its 9.5% share in Hulu back to the streaming TV company, leaving Disney and Comcast as its owners.

    Hulu said Monday that AT&T sold its stake for $1.43 billion, valuing the unprofitable Hulu at $15 billion.

    The Walt Disney Co. wound up with a 60% share after its purchase of much of 21st Century Fox, which included Fox's Hulu stake. NBCUniversal parent Comcast Corp. owns 30%. There is speculation that Comcast will sell too, leaving Disney the sole owner and perhaps making Hulu's content much more Disney-centric.

    Disney may bundle Hulu with its upcoming kids-focused streaming service, Disney Plus, and its sports service, ESPN Plus, executives said last week.

    Hulu's $6-a-month service lets users watch original series and network TV episodes after they air on TV. It has a newer live-TV service that costs $45 a month.

    AT&T came by its Hulu stake after buying Time Warner, which invested $583 million in Hulu in 2016. Now the company, known as WarnerMedia, is launching its own streaming service later this year, which will focus on HBO and other shows and movies owned by the company.

    NBCUniversal, too, will debut a streaming service in 2020.

    The fragmentation of streaming services may mean higher costs for consumers as they hunt down all their favorite shows and movies across different services.

    Hulu CEO Randy Freer said in a statement that AT&T's WarnerMedia, which provides content to Hulu, will remain "a valued partner."
     

    Tags:AT&TComcastDisneyHulu



    DirecTV calls off acquisition of rival Dish, possibly ending a yearslong pursuit

    Friday, November 22, 2024
    Dish Network satellite dishes are shown at an apartment complex in Palo Alto, Calif., Feb. 23, 2011. (AP Photo/Paul Sakuma, File)

    DirecTV is calling off its planned acquisition of rival Dish after the offer was rejected by bond holders at that company.

    The deal was reliant on Dish bond holders agreeing to trade in the debt they held for debt in the new company, a swap that would have cost them about $1.6 billion, collectively.

    The retreat by DirecTV this week may end a years-long effort by the company to acquire both Dish and Sling after it announced the bid in September.

    DirecTV was looking to acquire Dish TV and Sling TV from its owner EchoStar in a debt exchange transaction that included a payment of $1, plus the assumption of approximately $9.8 billion in debt. The deal was contingent on several factors, including regulatory approvals and bondholders writing off debt related to Dish.

    "While we believed a combination of DirecTV and Dish would have benefited all stakeholders, we have terminated the transaction because the proposed exchange terms were necessary to protect DirecTV's balance sheet and our operational flexibility," DirecTV CEO Bill Morrow said in a statement.

    The prospect of a DirecTV-Dish combo has long been rumored, and reported talks resurfaced over the years. And the two almost merged more than two decades ago — but the Federal Communications Commission blocked the deal valued at the time at $18.5 billion deal, citing antitrust concerns.

    The pay-for-TV market has shifted significantly since. As more and more consumers tune into online streaming platforms, demand for more traditional satellite entertainment continues to shrink.

    DirecTV says that it will continue to invest in next-generation streaming platforms and offer new packaging options while integrating content from live TV alongside direct-to-consumer... Read More

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