Disney and Comcast fight over Hulu ownership

Yahoo Finance Live discusses a report surrounding the battle between Disney and Comcast over Hulu ownership.

Video transcript

All right. Another major player in streaming is Hulu. According to the Wall Street Journal, the battle between Disney and Comcast for ownership is heating up. Hmm.

This was a very interesting report from the Journal. And it really dove into the drama surrounding both Comcast and Disney that dates all the way back to the Fox acquisition. But what stood out to me in this piece in particular is the discrepancy over the valuation of Hulu. In 2021, according to this report, NBC Universal said that Hulu was worth roughly $70 billion, but that Disney had a valuation that was tens of billions of dollars less than that. So under the current agreement--

Because it wants to buy the rest, so it's trying to get a bargain.

Exactly. So to me, there's that intense of a discrepancy. That's going to be a problem down the line. Now in 2024, that's the deadline, January 2024, that's when will really determine. These estimates are from 2021. They're going to reassess in 2024. And if they can't reach some sort of an agreement, they're going to enlist a third party entity to come in and try and determine the true value of Hulu. Now under the current agreement, Hulu would be priced at a guaranteed minimum equity value of $27.5 billion. So that's the minimum.

Comcast CEO, Brian Roberts, says, it's more than likely, it's going to sell for more than that. But again, both sides have to reach that agreement. So that was the most interesting part to me. So the battle for Hulu-- not quite over yet.

No. It sounds like it's going to go on for quite a while. Thanks so much. Appreciate it.