Everything is on the table now with Hulu, Disney CEO Iger says
PUBLISHED THU, FEB 9 20239:35 AM EST
UPDATED 5 HOURS AGO
Rebecca Picciotto
CNBC.com
KEY POINTS
-- Disney CEO Bob Iger said that “everything is on the table” as it considers buying Comcast’s one-third stake in Hulu.
-- The company currently owns two-thirds of the general entertainment streaming service.
-- Iger’s comments come after he announced a broader restructure of the company, minutes after posting first-quarter earnings.
Disney CEO Bob Iger said Thursday that “everything is on the table” with streaming service Hulu.
Disney owns two thirds of the streaming service, which focuses on more adult-oriented general entertainment content such as the series “Only Murders in the Building” and the sci fi thriller “Prey.” Iger wants Disney to focus on its more family-friendly franchises, such as “Frozen” and the Marvel Cinematic Universe.
Disney has been expected to buy the rest of it from Comcast as early as January 2024.
Iger’s comments on Hulu came as he told CNBC’s David Faber that he was planning on paring back Disney’s general entertainment content.
He said that he wasn’t going to speculate whether Disney is a buyer or seller of Hulu right now.
However, Iger also noted that “streaming is the future” and that the streaming segment of the business is top priority.
Disney and Comcast have gone back and forth on Hulu. Comcast introduced a proposal to buy Disney’s 66% stake in Hulu, but Disney rejected the idea, CNBC previously reported. In May 2019, the two companies reached a tentative agreement that Comcast would sell its minority stake to Disney by 2024.
As the 2024 deadline gets closer, Disney has the option of buying out Comcast’s 33% stake. Disney guaranteed a minimum value of $27.5 billion for Hulu. In advance of Disney’s potential stake buyout, Comcast has transferred shows like “Saturday Night Live” to its Peacock streaming platform.
Iger’s comments regarding Hulu on Thursday come after Disney announced 7,000 job cuts, along with an overall reorganization of the business into three central divisions: streaming and media operations, ESPN and parks. It also said it would cut $5.5. billion in costs. The reorganization marks Iger’s most significant action since returning to the helm in November.
Shares of Disney rose about 3% on Thursday.
Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.
Everything is on the table now with Hulu, Disney CEO Iger says (cnbc.com) |
