Disney in talks with AT&T to buy WarnerMedia's Hulu stake: Variety

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Walt Disney Co is actively pursuing the purchase of WarnerMedia's nearly 10 percent stake in Hulu, entertainment business news portal Variety reported on Wednesday, citing sources.

Disney, Comcast and Twenty-First Century Fox Inc each had a 30-percent stake in the video streaming service Hulu as of September 2018.

Time Warner, renamed WarnerMedia after its acquisition by telecom company AT&T Inc, holds a 10-percent passive stake in Hulu.

In November last year, AT&T committed to cutting its heavy debt load in 2019 through a variety of measures, including a review of all of its non-core assets such as its stake in Hulu for a possible sale.

Craig Erwich, Hulu Senior Vice President of Originals, speaks during the Television Critics Association (TCA) Winter Press Tour in Pasadena, California, U.S., February 11, 2019. /VCG Photo

According to Variety, AT&T has been considering selling the Hulu stake as well, as WarnerMedia is preparing to launch its own subscription-streaming service, which is expected to debut in the fourth quarter of 2019.

The report cited Disney CEO Bob Iger as saying that the purchase would give Disney more incentive to invest in Hulu and to expand it to international markets. If Disney controls 70 percent of Hulu, the latter would be focusing on adult-oriented, general entertainment fare.

On the other hand, having a controlling owner could accelerate Hulu's growth in the heavily competed streaming market as well.

By the end of 2018, Hulu had more than 25 million total subscribers, with a net gain of eight million for the year, the company said.

(With inputs from Reuters)