- According to Bob Iger, “everything is on the table” with Hulu. He also stated that he would not speculate on whether Disney will buy or sell Hulu but that he and his team will look at it objectively.
- Less than three years later, Bob Iger replaced Bob Chapek and took on his seat as CEO again to salvage the situation at Disney as Bob Chapek is said to have “come under fire.”
- Disney announced it would cut $5.5 billion in costs and eventually lay off 7,000 employees.
It is no longer news that Bob Iger has returned as Disney’s CEO. It is also no secret that Disney will soon own 100% of Hulu, effectively making Disney the sole company owner.
Now, this calls for questions. Does Disney intend to sell Hulu? At what price? Why is Disney considering selling Hulu? What will happen to Hulu employees?
A Brief Backstory of Hulu
In March 2007, NBC Universal announced the creation of Hulu, a subscription streaming service, with a $100 million investment from Providence equity partners and internet distribution deals with MSN, Yahoo, AOL, and MySpace.
Later that year, on October 29, 2007, a private version of Hulu launched, and Hulu went public seven months later. Hulu continued to operate for a few months before Disney announced in April 2009 that it had acquired a 30% equity stake in the streaming company.
Disney also proposed that some of its shows be made available for streaming on Hulu, which it did. This is how Disney became acquainted with Hulu.
Ten years later, Disney purchased 21st Century Fox’s stake in Hulu, acquiring 60 percent of the company’s equity shares. This makes Disney the majority shareholder at Hulu.
Disney also acquired Warner Media’s 9.5 percent share, which equals Disney’s stakes at 69.5 percent and Comcast owning roughly a third. The company intends to acquire Comcast’s stake in Hulu and become the sole owner by early January 2024.
Who is Bob Iger?
Robert Allen Iger, also known as Bob Iger, is an American businessman and media executive currently the CEO of The Walt Disney Company.
Bob Iger was appointed CEO of Disney in 2005, succeeding Michael Eisner, who had served as CEO for 21 years. Bob Iger’s tenure as CEO ended in 2020, when he chose Bob Chapel to succeed him.
Less than three years later, Bob Iger replaced Bob Chapek and took on his seat as CEO again to salvage the situation at Disney as Bob Chapek is said to have “come under fire.”
The reappointment was announced and steered multiple questions on Sunday. Bob Iger announced his reappointment as CEO in an email to Disney employees.
Is Disney Selling Hulu?
Everything has led us to this point. Is Disney really selling Hulu, or is this just another rumor that the entertainment company will never confirm?
In an interview with CNBC, Bob Iger says that “everything is on the table with Hulu.” He also stated that he would not speculate on whether Disney would buy or sell Hulu but that he and his team would look at it objectively.
Disney still has an agreement with Comcast to buy out Comcast’s stakes in Hulu or sell it in January 2024. This decision is still pending with Disney.
The company has announced that it will reorganize and divide itself into three divisions: ESPN, entertainment, and parks. Disney also announced that it would cut $5.5 billion in costs and eventually lay off 7,000 employees.
It’s easy to see why employees believe Disney will sell Hulu. This is a company that Disney will ultimately purchase, and the boss at Disney is on a mission to save Disney and pull it out of the rut Bob Chapek left it in.
It is unclear whether Disney intends to sell Hulu now, but one thing is sure. Bob Iger is looking for ways to improve both streaming platforms and has been open about his plans for Disney and Hulu so far.
