Hulu has repurchased AT&T’s (NYSE: T) 9.5% stake in the business for $1.43 billion, giving the streaming company a valuation of $15 billion.
The transaction, announced on Monday, indicates that Hulu continues to gain popularity, even as the market for over-the-top content becomes increasingly crowded. The valuation is a big step up from November, when Disney (NYSE: DIS) said in a regulatory filing that the company was worth $9.26 billion.
Hulu is owned by a group of media companies, including Comcast (NASDAQ: CMCSA), which owned 30% of the company before today; and Disney, which owned 60%, including 30% gained in its recent acquisition of Fox.
Hulu is the leading premium streaming service offering live and on-demand TV and movies, with and without commercials, both in and outside the home.
AT&T said it will use proceeds of the transaction to reduce its debt. AT&T purchased Time Warner last year, giving the company ownership of HBO, which has its own streaming offerings.
“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.
AT&T had to wipe some egg off its face this past weekend, with the news that the telephone aired the first episode of the final season of HBO’s “Game of Thrones” four hours ahead of schedule by accident.
Shares in T took on a penny at $32.03
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