A leading streaming platform is owned by two competing media companies. With a deal to transfer ownership leading to a future transaction, things could get heated as a battle is now underway over the value of the platform and next steps.
What happened: Streaming platform Hulu is at 67% obsessed through The Walt Disney Company DIS and 33% owned by Comcast Corporation CMCSAtwo competing media companies.
Hulu was created in 2007 as a partnership between several media companies as a platform for broadcasting previous episodes of television series. While several media companies and private equity investors used to own part of the company, it was Disney’s acquisition of 21st Century Fox in 2019 that gave the company majority control and ownership of the platform.
Comcast has entered into a deal to sell its Hulu stake to Disney based on fair market value as early as 2024. Under the terms of the deal, Hulu is valued at a minimum of $27.5 billion, which would increase Comcast’s stake to $9.08 billion.
Battle of two companies: Disney CEO Bob Chapek recently said he would like to rising up the timing of the acquisition of the remaining interest in Hulu. Chapek told the Financial Times that Comcast has been reluctant to close a deal.
While a minimum valuation was part of the original deal, Chapek hinted that a lower price could be achieved to acquire the rest of Hulu due to market and streaming competition.
Chapek mentioned that 100% ownership of Hulu might be necessary to fully integrate Hulu into Disney+ and the company’s streaming plans.
“I believe that in order to integrate with Disney+, we need to fully own Hulu, and we’d like to reach the endpoint sooner,” Chapek said.
Comcast CEO BrianRoberts Also spoken last week on Hulu’s stake and confirmed that the company will target market value for Hulu’s stake, not a renegotiated lower price.
Roberts said Hulu could earn a premium with its existing 46 million subscribers and strong brand awareness.
