Does Anybody Want To Buy Hulu?
The fate of Hulu continues to remain in the balance as Disney and Comcast review their options when it comes to future of the streaming service.
In 2009, the two companies reached an agreement that gave Disney ownership of 66% of Hulu, with Comcast owning the remining 33%.
As per the agreement, beginning in January 2024, either company can force a sale of Comcast’s third of Hulu to Disney. While the exact value of Comcast’s share of the streaming service would be assessed at the sale deadline, the previous agreement guaranteed a minimum valuation of $27.5 billion.
Cash-Strapped Disney
Because of the amount of debt the Walt Disney Company has taken on in recent years, and the ongoing struggles with Disney +, there has been widespread speculation that Disney might look to sell their stake in Hulu.
Whether that sale would be to Comcast, or another company altogether however, remains unclear.
Earlier this week, one Wall Street insider speculated that Disney could acquire the rights to more Marvel characters as part of a larger sale of Hulu to Comcast.
Reviewing Their Options
When speaking at the Morgan Stanley Technology, Communication and Telecom conference on Thursday, Disney CEO Bob Iger stated that the company is still reviewing all of their Hulu options.
These comments fell in line with Iger’s previous assertion that a purchase of Comcast’s stake in Hulu is not necessarily a forgone conclusion.
“What we’re doing right now, because we own two-thirds of Hulu, and we have an agreement with Comcast that may result in us owning 100 percent, is we’re really studying the business very, very carefully,” Iger said at the time.
Will Comcast Force a Sale?
When Comcast president Mike Cavanagh was asked about Disney’s hesitancy to purchase Hulu, he indicated that his company could look to an outside buyer to acquire their stake. He also reminded Disney of their obligation.
“Remember they and we, back in 2019, put together a very clean and good agreement for a put-call that does happen in early 2024,” said Cavanagh “We are very happy with that. But, if there is something different that comes along, we have to consider things.”
While Comcast could still force Disney to purchase their stake in Hulu, the future of the streaming service remains in flux. After their five year agreement ends, it doesn’t appear as if Disney or Comcast is eager to buy their partner out.
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