DIS
Analyst urges sale of Comcast Hulu stake that could be worth $15B
- After buying out joint venture partners Fox (FOX, FOXA) and
WarnerMedia (NYSE:T), Disney (NYSE:DIS) took operational control of Hulu
- able to direct the streaming service as a general-entertainment
counterpart to its branded Disney Plus service, for its benefit.
- But don't forget that Comcast (NASDAQ:CMCSA) is a minority partner,
with 33% of the company - and one analyst says it's time to put it up for
sale.
- Comcast agreed in May 2019 to sell its stake in five years, which
would take it to spring 2024. As the key part of the deal, Comcast could
sell its remaining stake in Hulu at a total-company valuation of $27.5B
or whatever Hulu is appraised at in 2024.
- But why wait, asks LightShed analyst Richard Greenfield? "The Hulu
joint venture appears to have outlived its usefulness, with Comcast and
Disney both increasingly focused on their own direct-to-consumer
platforms."
- While Disney is limiting value growth of Hulu through international
expansion, Greenfield says, excitement around connected TV is exploding -
and Hulu could be worth $45B today.
- And that means Comcast's share could be worth $15B today - and even
more if they wait.
- "Waiting until 2024 to resolve ownership would appear to create an
unwanted/unnecessary financial overhang on Disney given how fast the
valuation of streaming assets are growing," he writes. And the joint
venture arrangement looks like it complicates the streaming plans at both
companies, he adds: "slowing Disney's ability to unify its streaming
services and preventing Comcast from having exclusive access to its
current
programming and library content" (see *Modern Family* headed to both
Hulu and Peacock).*Source: Hulu*
|Today, 6:31 PM|26 Comments
Analyst urges sale of Comcast Hulu stake that could be worth $15B
- After buying out joint venture partners Fox (FOX, FOXA) and
WarnerMedia (NYSE:T), Disney (NYSE:DIS) took operational control of Hulu
- able to direct the streaming service as a general-entertainment
counterpart to its branded Disney Plus service, for its benefit.
- But don't forget that Comcast (NASDAQ:CMCSA) is a minority partner,
with 33% of the company - and one analyst says it's time to put it up for
sale.
- Comcast agreed in May 2019 to sell its stake in five years, which
would take it to spring 2024. As the key part of the deal, Comcast could
sell its remaining stake in Hulu at a total-company valuation of $27.5B
or whatever Hulu is appraised at in 2024.
- But why wait, asks LightShed analyst Richard Greenfield? "The Hulu
joint venture appears to have outlived its usefulness, with Comcast and
Disney both increasingly focused on their own direct-to-consumer
platforms."
- While Disney is limiting value growth of Hulu through international
expansion, Greenfield says, excitement around connected TV is exploding -
and Hulu could be worth $45B today.
- And that means Comcast's share could be worth $15B today - and even
more if they wait.
- "Waiting until 2024 to resolve ownership would appear to create an
unwanted/unnecessary financial overhang on Disney given how fast the
valuation of streaming assets are growing," he writes. And the joint
venture arrangement looks like it complicates the streaming plans at both
companies, he adds: "slowing Disney's ability to unify its streaming
services and preventing Comcast from having exclusive access to its
current
programming and library content" (see *Modern Family* headed to both
Hulu and Peacock).*Source: Hulu*
|Today, 6:31 PM|26 Comments
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