Citi Thinks Disney Could Trade Hulu for Hulk
thewrap.commost recent results left him thinking that it will look to shed Hulu.“Following fiscal 1Q23 results, we believe the company is less interested in a mass market DTC offering.
This raises the possibility that Disney may sell its Hulu stake,” the analyst wrote.Disney has owned the lion’s share of Hulu, the hybrid subscription/ad-supported streamer, since it completed its $71.3 billion acquisition of 21st Century Fox in 2019.Under a 2019 agreement, Disney can buy out Comcast’s remaining 33% stake in Hulu as early as January 2024 — and Comcast can require that Disney buy it out.But with Comcast’s NBCUniversal controlling the two superheroes’ distribution rights, Bazinet suggested a deal could be in the offing.“While Disney owns all Marvel IP, Universal has distribution rights to Hulk and Namor,” the analyst wrote. “As such, if Disney makes a Hulk or Namor film, Comcast can distribute the film on Peacock.
If Hulu is sold, Disney may use this as an opportunity to secure these distribution rights.”Hulu is a valuable asset with a wide reach.
Market research and consulting firm Parks Associates found that 44% of U.S. internet households subscribed to Hulu in the third quarter 2022, a six-point increase over 2021.
Read more on thewrap.com