Disney’s CEO, Bob Iger, stated in an interview with CNBC that he is considering the option of selling Hulu instead of spending billions to purchase Comcast’s share. As the deadline for either buying or selling Hulu in 2024 draws near, Iger stated that “all options are on the table” and he would not speculate whether they will be a buyer or a seller.
However, he mentioned that he is concerned about the saturation of general entertainment offerings in the current market and they will be evaluating the situation objectively and thoroughly.
In a conversation with host David Faber, Bob Iger, CEO of Disney, indicated that they would be open to the idea of selling their stake in Hulu if approached by Comcast CEO, Brian Roberts, to purchase it. The previous assumption was that Disney would buy the remaining stake, however, Iger stated that it is not necessarily the case.
Currently, Disney holds two-thirds of Hulu, with Comcast owning the remaining third. As per the put/call agreement, starting January next year, either company can require the other to either buy or sell the stake, with the fair market value being determined by independent experts. Disney has promised to pay a minimum total equity value of $27.5 billion for Comcast’s stake.
With the recent announcement of a major restructuring that includes cost reductions and 7,000 layoffs, Disney is now more focused on cutting expenses rather than spending. The media industry, including Disney, is facing challenges in obtaining a return on investment for streaming as linear television viewership decreases.
What is hulu?
Hulu is a leading over-the-top (OTT) video streaming platform that offers a diverse range of movies and TV shows to its users. The platform has become a household name in the United States and Japan, where it is widely popular.
Hulu is currently owned by The Walt Disney Company, which holds a 67% stake in the company, while the remaining 33% is owned by Comcast through NBCUniversal. However, this ownership structure is expected to change in 2024 when Comcast’s ownership will be dissolved.
The platform is led by Joe Earley, who serves as its President. Hulu is a subsidiary of Disney Streaming, which is part of Disney Entertainment. To access Hulu’s vast library of content, users are required to register on the platform and create an account. The platform’s website, hulu.com, is user-friendly and easy to navigate, making it accessible to users of all ages.
Hulu was launched on October 29, 2007, making it over 15 years old. Despite its age, the platform has managed to keep up with the latest technology and remains at the forefront of the OTT video streaming industry. The platform is considered to be active, with its popularity only continuing to grow with each passing day.