Last month, reports flew in that Disney planned to purchase 21st Century Fox. Previously, this move seemed all but secure. However, it appears that Comcast may be angling to purchase Fox, potentially increases the chances of a bidding war. All of this bidding war talk leaves the fate of Hulu in serious question.
Comcast’s Grand Plans for Fox
Multiple media outlets have reported on Comcast’s growing designs on Fox. The Economist today reported that Comcast may try to outbid Disney. Meanwhile, The New York Times on Monday reported that Comcast may force Disney to raise its bid price.
While it’s likely one of the two companies will ultimately purchase Fox, the winner will almost certainly have an impact on Hulu’s future.
At present, Hulu has four owners Disney, 21st Century Fox, Comcast, and Time Warner. The first three each have a 30% stake in the company. Time Warner has a 10% share. Between Comcast (owner of NBC) and Disney (owner of ABC), whichever company purchases Fox will have a majority stake in Hulu. At that point, Hulu will likely be at the whim of the majority owner.
Who’s the Better Owner?
Hulu subscribers should be concerned which company takes ownership of Fox, and by consequence, Hulu. Disney currently plans to create its own streaming service, something that could be merged into Hulu. Such a move would likely create a streaming powerhouse, especially with Disney’s large content library in the wing and major IPs.
However, should Comcast take the reigns, well, Hulu customers may be subjected to the whims of one of America’s most hated companies.
Comcast has yet to decide if it will engage in a bidding war over Fox. However, it’s likely Disney will not back down without a fight.
Sam Cook is a full-time content strategist by day, a part-time freelance content writer since 2015. In another life, he was a high school English teacher for nearly a decade. Based in sunny New Orleans, he writes long-form educational content on technology, including Insurtech, Fintech, HRtech, and content streaming. He loves whittling down complex ideas within these areas that make decisions easier for buyers. When he’s not reading books with his son Miles and playing video games with the family, you can find him immersed in his growing collection of Euro-style board games.