Disney is in the process of buying AT & T's 10 percent stake in Hulu, which includes its WarnerMedia acquisition, according to a report from Variety this morning. The news is not surprising – AT & T had already been exploring a sale. Disney, which is closed, wants to see Disney picks up Fox's 30 percent share in Hulu.
Currently, Disney owns a 30 percent stake in Hulu's streaming service , That means the Fox deal wants to give it a 60 percent stake in Hulu. Snagging AT & T's Hulu share would bring Disney's ownership to 70 percent.
Comcast / NBCU is Hulu's other major owner, but is not currently ready to sell, Variety said.
AT & T had detailed its streaming plan to invest in November, Hulu stake as part of his larger goal to "monetize assets" that were not essential to his current strategies and to help pay down his debt. Its Hulu share is valued at $ 930 million.
AT & T has little interest in Hulu because it's building out its own internet-based streaming services, including live TV service DirecTV Now; the more lightweight WatchTV; WarnerMedia properties. WarnerMedia is today streaming services for its brands, like HBO NOW, Boomerang, DC Universe, and others.
Disney, meanwhile, is preparing to launch its family-friendly Netflix competitor, Disney +, but sees Hulu as a place to house Its more adult-oriented programming and general entertainment properties.
Hulu today has 25 million subscribers, but is still a smaller player compared to Netflix because it's not yet available worldwide. It has not been installed in original programming at Netflix's scale. Hulu compete on the market against larger rivals like Netflix, AT & T / WarnerMedia, and soon Apple, as well.