Streaming service company Hulu is buying back wireless carrier AT&T Inc’s 9.5% stake in the company in a deal valued at $1.43 billion, the two companies said on Monday.
The transaction valued Hulu at $15 billion. AT&T said it will use proceeds from the deal to cut down its debt. The $15 billion valuation represents an increase over the previous $9.3 billion valuation that Disney laid out in a regulatory filing related to its acquisition of 21st Century Fox assets.
Disney owns 60% and Comcast owns 30% of Hulu.
“We thank AT&T for their support and investment over the past two years and look forward to collaboration in the future,” Hulu CEO Randy Freer said in a press release. “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’s streaming service had strong growth in 2018, adding 8 million customers to reach 25 million subscribers. The subscription VOD service offers both ad-supported and ad-free tiers, as well as live television through its vMVPD offering.