17 Apr

Should Comcast Sell Its Stake in Hulu to Disney?

WRITTEN BY Sneha Nahata

Hulu’s ownership

Hulu has been changing hands amid rising consolidation in the media industry due to cord-cutting and the growing popularity of online video streaming services provided by established players such as Netflix (NFLX) and Amazon (AMZN).

Hulu was jointly owned by Walt Disney (DIS), 21st Century Fox, Comcast’s (CMCSA) NBCUniversal, and Time Warner, which was then acquired by AT&T (T) in June 2018. Disney had a 30% stake in Hulu, which was doubled to 60% after the acquisition of assets of 21st Century Fox, including a 30% stake in Hulu. On Monday, AT&T’s WarnerMedia also sold its minority stake of 10% in Hulu, leaving Comcast and Disney as the owners of Hulu. However, AT&T could continue to be Hulu’s “valued partner” in delivering content.

Should Comcast Sell Its Stake in Hulu to Disney?

Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

Comcast and Hulu

If speculations are correct, then Comcast might sell its ~30% stake in Hulu, as Disney has already acquired a controlling stake in Hulu to fight streaming giants. Hulu’s sell-off would also make sense, as it could help Comcast to reduce its debt burden, which it gained after the acquisition of London-based Sky in October 2018, and due to higher investments for its video streaming service.

Comcast’s NBCUniversal is launching its new video streaming service in the first quarter of 2020 amid declining pay-TV subscribers and fighting with digital rivals. Comcast lost 19,000 residential video customers in Q4 2018.

Latest articles

Today, Canopy Growth announced that it acquired the Saskatchewan-based KeyLeaf Life Sciences along with entities relating to the company and its intellectual property. Here's what you need to know about the completed deal.

Yesterday, Tyson Foods (TSN) and fellow meat producers Pilgrim’s Pride (PPC) and Sanderson Farms (SAFM) took a hit to their stocks after news came out about an investigation over price-fixing allegations.

On June 24, RH (RH) was trading at $115.01, implying a rise of 21.2% since its announcement of its first-quarter earnings results on June 12. Despite the surge in its stock price, the company is still trading at a discount of 29.1% to its 52-week high.

26 Jun

Roku Stock Fell Close to 7.0% Yesterday

WRITTEN BY Aditya Raghunath

Roku stock fell 6.8% yesterday to close trading at $93.25 per share. Roku stock has lost over 9.0% in market value in the last two trading days. Prior to this pullback, Roku stock was up a whopping 235.0% year-to-date.

26 Jun

Beyond Meat Stock Up Today on New Product Launch

WRITTEN BY Rajiv Nanjapla

Today, Beyond Meat (BYND) announced that its new product, Beyond Beef, will hit markets across the US later this week.

FedEx (FDX) ended fiscal 2019 on a dismal note and reported a significant YoY decline in fourth-quarter earnings. The delivery giant posted adjusted EPS of $5.01, which was 15.2% lower than the year-ago quarter’s earnings of $5.91. The company cited sluggish revenue growth and increased expenses as the main reason behind the dismal bottom-line performance.