Why It Sounds Like Disney Wants To Sell Hulu
The time is fast approaching when Disney CEO Bob Iger will have to make a decision on what to do with the company’s stake in Hulu.
Under their current agreement with Comcast, Disney owns 66% of the streaming service, while Comcast owns the other third.
In January 2024, however, things will change. At that time, Disney has the option of purchasing Comcast’s share of Hulu. Likewise, Comcast also has the option of forcing Disney to buy its share out.
Time is Ticking
With the timer ticking down, Iger told investors that he was studying the Hulu situation “very, very carefully.”
“The environment is very, very tricky right now. And before we make any big decisions about our level of investment, our commitment to that business, we want to understand where it could go.”
Until recently, many on Wall Street thought that Disney would simply buy Comcast out. After Bob Iger’s recent comments, however, the mood has changed.
According to insiders, Hulu executives were unhappy with Iger’s recent comments.
“It was an affront,” one executive said. “The takeaway was: He’s selling it.”
Disney’s Debt Problem
While Hulu continues to grow subscribers and is home to critically acclaimed shows such as The Handmaid’s Tale and Only Murders in the Building, Disney’s finances are not in a position to take on more debt.
With its current debt load of $48 billion dollars, Disney would likely be happy to sell off Hulu. Whether or not the company is able to find a buyer in Comcast, other another entity, remains to be seen.
No Global Presence
One issue facing any potential Hulu sale is the streaming service’s lack of global footprint.
Although Hulu has roughly 46 million subscribers, it only services customers in the United States and Canada.
In 2019, Hulu executives pitched a $6 billion investment to take the streaming service globally. While Bob Iger was initially receptive to the idea, he eventually decided such a move was premature.
Now, without that global footprint, owning Hulu may simply not be worth it to Disney.
“Without expanding globally, it’s not worth it,” said one former Disney executive. “So just get rid of it now.”
Thanks for visiting MickeyBlog.com! Want to go to Disney? For a FREE quote on your next Disney vacation, please fill out the form below and one of the agents from MickeyTravels, a Diamond level Authorized Disney Vacation Planner, will be in touch soon! Also, thanks for reading.