At AT&T’s recent annual analyst meeting AT&T announced plans to sell some non-core assets to help address their debt load. With the purchase of Turner and other debts AT&T now has debt of $175 billion, they need to pay off.
What do they plan to sell off? One report is Hulu is on the list of possible assets to sell because Disney is an interested buyer. When AT&T purchased Time Warner, it came with 10% stake in Hulu. It is reported that this 10% share may be worth as much as $930 million. While that is only a fraction of AT&T’s debt load, getting $900 million from Disney would help them pay off their $175 billion.
This debt load may also be the reason AT&T has shut down several streaming services recently like FilmStruck. AT&T is likely trying to unload less profitable segments while focusing on more profitable ones.
Yet there is push back. Some analysts see Hulu as a potentially very profitable option going forward. They hope AT&T may be willing to hold on to their 10% stake in hopes that Disney’s new ownership of Hulu will make the company profitable.
Would you like AT&T to sell their Hulu stake or keep it for the future? Leave us a comment and let us know.
Source: Seeking Alpha
Did you know we have a YouTube Channel? Every week we have a live Cord Cutting Q&A, and weekly Cord Cutting recap shows exclusively on our YouTube Channel!