Big, boring AT&T (NYSE:T) recently made a splash, selling its minority stake in streaming video site Hulu. AT&T stock gained 0.7% on the news. Thanks to its Time Warner deal, the telecom giant received a 9.5% stake in Hulu, which it sold earlier this week for $1.43 billion. That values the streaming firm at around $15 billion. Of course, those happiest about the sale are Disney (NYSE:DIS) and Comcast (NASDAQ:CMCSA). They own approximately 60% and 30% of Hulu, respectively.
I think the move demonstrates management’s seriousness about resolving the company’s pressing financial issues. Still, the sale of the Hulu stake alone won’t make or break anyone’s approach toward AT&T stock. But I’m bullish on AT&T stock for a much more fundamental reason. Specifically, AT&T is essentially a branch of the U.S. government. Want proof? Look at the multi-billion dollar federal contract that the company won to develop a nationwide broadband network for emergency responders. That’s a highly sensitive responsibility that no other telecom firm has come close to matching.
Source: InvestorPlace
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