Why The Future of Hulu Remains Clouded
With Disney set to take center stage once again tomorrow for its Q2 earnings call, the future of Hulu remains clouded.
Under a 2019 agreement, Disney has the ability to buy out Comcast’s minority stake in the streaming service as early as January 2024. Conversely, Comcast can require that Disney do so.
While Hulu continues to be a popular streaming service with hits such as The Handmaid’s Tale and Only Murders in the Building, Disney may not be in a position to take on additional debt. In October 2022, Disney valued Comcast’s stake in the company at $8.7 billion.
In the last year, Bob Iger has continued to say that the company is looking a Hulu “very, very carefully,” and that all options remain on the table.
Could Disney Sell Hulu?
Some investors have suggested that Disney should sell their stake in Hulu, whether this sale would be to Comcast or another media entity.
While many investors have touted a Hulu sale as a way to help unburden the company from their large debt load, others have suggested that Disney should buy the steaming and combine the library with Disney+.
While the Hulu question continues to linger, many insiders believe that Disney will continue to weigh their options before acting.
Is A Sale Possible?
According to Gerber Kawasaki Management CEO Ross Gerber, there may not the right deal out there.
“I don’t think we’re gonna hear anything about a plan for Hulu yet,” he said. “I think Hulu is actually a good platform and has legs and has live TV. So it does fit unless somebody is willing to pay a premium for it. I don’t think [Disney] could get the right value for Hulu trying to sell it unless they and Comcast work something else [out].”
For their part, Comcast has remained aloof about their plans. While the media giant could force Disney to buy them out, outright ownership of Hulu may be more valuable.
On their recent earnings call, Comcast President Mike Cavanagh refused to answer a question about Hulu.
While it is unlikely that Bob Iger will reveal Disney’s plans for the streaming service tomorrow, a decision is on the horizon. Until then, all we can do is speculate.
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! Thanks for reading!