The Chernin Group, which manages and invests in media businesses such as anime streaming service Crunchyroll, and AT&T will commit more than $500 million in the new joint venture. The companies said the venture will invest in ad- and subscription-based video services and online streaming.
AT&T and The Chernin Group reportedly worked together for a big for Hulu last year, which was rejected. The new venture should compete with Hulu and other services such as Netflix (NFLX).
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TheStreet Ratings team rates AT&T INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AT&T INC (T) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, notable return on equity, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."