Posted in: Disney+, Hulu, TV | Tagged: comcast, disney, disney plus, hulu, streaming

Comcast Will "More Likely Than Not" Sell Hulu Shares to Disney

Following up on Disney CEO Bob Iger's comments from earlier this month, Comcast CEO Brian Roberts offered an update on the Hulu situation.

Published Tue, 16 May 2023 09:23:10 -0500

by Ray Flook

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Sounds like the love affair between The Walt Disney Company and Comcast over the future of Hulu is starting to heat up. Earlier this month, Disney CEO Bob Iger shared that the company had had "cordial" and "constructive" discussions with Comcast about buying out the latter's 1/3 stake in the streaming service (with the estimated buyout expected to be a minimum of $9.2 billion). Iger's comments came during the same earnings call when it was also confirmed that Disney+, ESPN+, and Hulu would all be under one app by the end of the year. And while he made it clear that a final decision was still in play, Iger acknowledged that having Hulu under Disney's streaming banner is a long-term benefit.

"It has not yet been fully determined what's going to happen," Iger cautioned. "It's clear that a combination of the content that's on Disney+ with general entertainment is a very strong combination, from a subscriber perspective, from a customer acquisition and retention perspective, and also from an advertiser's perspective." And with that, Iger explained that it was Comcast who was actually in the driver's seat, adding, "How that ultimately unfolds is to some extent in the hands of Comcast and in the hands of a conversation and negotiation that we have with them. I don't want to be in any way predictive in terms of when or how that ends up. I can say we've had some conversations with them already, and they've been cordial, and they're aimed at being constructive."

During the MoffettNathanson's Technology, Media and Telecom Conference in New York earlier today, Comcast CEO Brian Roberts made it sound like they're looking to deal – depending on how some really big numbers play out. "I think it's more likely than not," Roberts shared in response to Comcast selling its shares to "The Mouse." Noting that the company is in a "very valuable position," Roberts explained that it's all about making sure that the shareholders get the best price possible for those shares. "What would a willing buyer in a robust auction pay?" Roberts asked rhetorically, adding that finding a value for the streaming service is a first-time effort that needs to take into account that "you get all the content from Disney and Fox forever, so in theory, what's that worth?" But in the end, Roberts sees the deal as being beneficial to investors: "I think ultimately that will be valuable for our shareholders."

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