Comcast CEO Is Happy To Sell Hulu To Disney Or Someone Else
Ever since Disney purchased 20th Century Fox and took control of a 66% stake in Hulu, there has been lots of questions about the streaming services’ future. Especially as Comcast and Disney made an agreement regarding Comcast’s 33% stake in Hulu, which means either company can force Disney to buy out Comcast’s stake in 2024. The agreement means Hulu needs to be valued by an independent company and will be valued at a minimum of $27 billion, meaning Comcast’s one-third stake would cost Disney at least $9 billion.
Last month, during an interview after the quarterly financial results, Disney CEO Bob Iger was asked about selling Hulu, which he replied,
“Everything is on the table right now, so I am not going to speculate whether we are a buyer or a seller of it. But I obviously have suggested that I’m concerned about undifferentiated general entertainment, particularly in the competitive landscape that we are operating in, and we are going to look at it very objectively and expansively,”
Earlier today, Comcast President Michael Cavanagh spoke at the Morgan Stanley Technology, Media & Telecom Conference and was asked about the current situation with the future of Hulu, either NBC acquiring Disney’s stake in Hulu or maybe creating a new partnership going forward. Michael said:
Well, on this one, remember, they and we, back in 2019, we put together a very clear and good agreement for a put call that does happen in early 2024. So we know what that looks like. We’re very happy and if that’s the way it plays out, that would be great. But if there’s something different that comes along, we have to consider things, but you could — simple to say, we won’t do something, unless it’s better in our minds than that. And I’ll leave it there.
Both Disney and Comcast are now actively trying to make moves to sway the negotiations over the future of Hulu. So these comments will no doubt be positioned in Comcast’s favour.
Ultimately, if Comcast is trying to buy Disney’s stake in Hulu, it’ll want to pay as little as possible, but if it just wants the money from its investment, it makes sense for Comcast to be open to selling to anyone willing to pay more.
Disney CEO Bob Iger is also taking part in the event on Thursday, so no doubt, the Hulu situation will also be likely to be brought up. Selling Hulu could allow Disney to deal with its debt issue following the purchase of 20th Century Fox and organise its streaming division to focus on Disney+. Internationally, Disney+ already includes content from studios such as 20th Century Studios, FX and ABC.
Do you think Comcast should buy or sell Hulu? Let us know on social media!