On Wednesday, it was reported that Disney is in talks with AT&T to purchase a 10% in the stake of their streaming service in Hulu. Through its WarnerMedia subsidiary, the telecom giant owns and operates the live streaming service that it formed and created more than a decade ago.
Media giants came together in the year 2007, to form Hulu. They wanted to design and create something for the streaming video. Though Hulu has found the going tough against Netflix, the shift towards original programming videos has brought more than 10 million subscribers taking its total to more than 20 million subscribers.
Comcast owns 30% in Hulu has no plans to sell the shares of its company as of now. According to the CEO of NBC Universal, Steve Burke told investors that they have no plans on selling their stake in the streaming service as of now.
Hulu was worth less than $10 billion in last May. The 10% stake, which it plans to sell to Disney, will see it gain in close to $950 million. According to AT&T’s WarnerMedia CEO, Randall Stephenson, they are launching service to stream video programs.
What better way than to sell its share to Disney and acquire the money instantly. As of now, Disney has plans to open two products, which are Disney+ and Hulu. Disney+ offers viewers with TV shows and Disney movies.
Once the talks are successful, Hulu can see its worth increase. Media giants are preparing to compete hard against Netflix. Just last month, Netflix decided to increase their prices for the streaming service.
Hulu responded to the price increase by cutting the subscription rates from $7.99 per month to $5.99 a month. As of now Disney already owns more than 30% of Hulu and is also in the process of acquiring 21st Century Fox that also owns 30%.