With Hulu’s Valuation Surpassing $30 Billion, Comcast and Disney Accelerate the Sale.

Comcast and Disney fast-tracks the Hulu Sale to September 30

Comcast and Disney have revised their agreement to expedite discussions regarding Comcast’s stake in Hulu to September 30, as Comcast CEO Brian Roberts announced.

Comcast holds a 33% share in Hulu, with Disney owning the remaining 67%. While addressing the Goldman Sachs investor conference, Roberts emphasized that Hulu’s potential synergies might be valued at approximately $30 billion, even before considering Hulu’s intrinsic value, in contrast with the prior valuation of $27.5 billion, which was perceived as a tentative figure when Disney took the reins five years ago. 

According to Roberts, Hulu’s current worth is significantly higher. Roberts mentioned that the revenue generated from selling Comcast’s Hulu share would be channelled back to its stakeholders. He noted that certain analyses suggest that a potential buyer could benefit from billions in synergies, depending on their identity and scale. 

Without accounting for Hulu’s inherent value, the synergy value could reach up to $30 billion. Roberts further highlighted that if Hulu were put up for sale in its current state, there would be plenty of eager bidders, indicating that in competitive auctions, the seller usually reaps the synergy benefits.

Goldman Sachs has been enlisted to assist with the valuation process. While Roberts refrained from specifying a timeline for the sale, he underscored the importance of transparency for investors. He remarked on the uniqueness of the situation, pointing out that no streaming platform of Hulu’s calibre has ever been auctioned.

Furthermore, when quizzed about the ongoing disagreement between Disney and Charter, Roberts expressed his lack of astonishment. He commented on the inevitability of such disputes when multiple distributors exist in a particular region, offering the same product. 

Highlighting the evolution of the video ecosystem, Roberts stated that while changes can lead to disruptions, the focus should remain on consumer preferences. He expressed hope for a resolution in the best interest of consumers.

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Hulu was launched in 2007 as a unique collaboration between media giants like 21st Century Fox and NBCUniversal under Comcast, Disney, and Time Warner.

Over time, Hulu’s ownership underwent significant changes. After Disney took over 21st Century Fox’s entertainment segments, it emerged as the primary stakeholder of Hulu. Having merged with 21st Century Fox, Disney hinted at further consolidating its streaming assets, which include ESPN+ and Disney+. 

In a conversation with CNBC, Disney’s CEO, Bob Iger, indicated a potential full-scale strategy for Hulu, not ruling out a possible stake sale.

Amidst this, Disney+ is facing a lawsuit by its shareholders for misleading them about its streaming platform’s operational costs and success. 

Ragul Thangavel
Ragul Thangavel
Staff Writer

With over nine years of diverse professional experience, Ragul has made significant contributions across various domains, including Media Operations, OTT Technologies, Video Production, Ecommerce, and Social Media.

Holding an Engineering degree, Ragul's career took an unconventional turn when he discovered his passion for writing, leading him to begin his journey as a content writer.

His career has been exclusively dedicated to the growth and development of startups, where he has played a pivotal role. His unique blend of technical knowledge and creative prowess has enabled him to drive innovation and success in every venture he has been a part of.

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