Hulu's valuation nearly triples

Credit: Reuters Studio
Published on April 16, 2019 - Duration: 01:11s

Hulu's valuation nearly triples

Hulu earned a $15 billion valuation when it bought back AT&T's stake in the company for $1.4 billion.

But as Fred Katayama reports, it's still worth one-tenth that of Netflix.

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Hulu's valuation nearly triples

A hasty rise for Hulu.

The entertainment streaming service that's behind shows like "Castle Rock" and "The Handmaid's Tale" earned a valuation of $15 billion Tuesday.

It did so when it shelled out $1.4 billion to buy back AT&T's 9.5 percent stake in the company.

That's quite a leap, given that it was last valued at just under $5.8 billion when Time Warner bought that stake in 2016.

AT&T inherited that when it bought Time Warner.

It will use the proceeds to shrink its huge debt.

AT&T plans to launch its own subscription streaming video service later this year.

AT&T's sale gives Disney more control of Hulu.

Disney owns a 60 percent stake in Hulu; rival Comcast has 30 percent.

Disney will rely on Hulu to bolster its offerings of mature programming as it launches its streaming service, Disney+, that incorporates its family-friendly films and TV shows, ESPN, "Star Wars" and Marvel's stable of superheros.

But even at $15 billion, Hulu is still worth one tenth that of the goliath of the industry, Netflix.

Investors have driven up shares of Netflix 30 percent this year.

It releases its earnings after the market close Tuesday.

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