Stock Markets 3 hours ago (Sep 02, 2022 05:24PM ET)
By Yasin Ebrahim
Investing.com — Comcast (NASDAQ:) reportedly continues to expect Disney to stick with its agreement and acquire the remaining 33% stake it doesn’t own in streaming service Hulu, CNBC reported Friday, citing unnamed sources.
Walt Disney Company (NYSE:) was slightly higher in afterhours trading.
Under the prior agreement, struck in May 2019, Comcast agreed to sell NBCUniversal’s stake in Hulu to Disney as early as January 2024. As part of the deal, Disney agreed to pay Comcast a guaranteed sale price valuing Comcast at $27.5 billion.
Comcast reportedly attempted to prise Hulu away from Disney in 2019, but Disney dismissed the idea, CNBC reported, citing sources.
Comcast has remained keen on acquiring Disney’s stake in Hulu as it sees the latter as key to its overall streaming growth.
Several top Comcast executives also don’t believe that Disney is the best place for Hulu, which includes an advertising-support streaming service, given that the company is set to launch an advertising-supported tier of Disney+, CNBC reported, citing the sources.
The report comes as activist investor Daniel Loeb has been pushing for change at Disney, and called on the company to consider cutting costs, acquire all of Hulu, and spanning off its sports network ESPN.