Disney CEO Bob Iger open to selling off Hulu

Bob Iger, who has rejoined as CEO of Disney, was initially attempting to buy Comcast’s stake from Hulu but has now revealed that he is open to selling the streaming platform.

Disney currently owns 67% of the streamer, with Comcast owning the remaining 33%. Iger had a lot to say in an interview with Squawk on the Street on CNBC, even though it has only been 90 days since his return to Disney.

Bob Iger said:

"Everything is on the table right now, so I am not going to speculate whether we are a buyer or a seller of [Hulu]"

He continued:

"But I obviously have suggested that I’m concerned about undifferentiated general entertainment, particularly in the competitive landscape that we are operating in, and we are going to look at it very objectively and expansively."

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Disney currently owns 67% of Hulu, with the remainder owned by Comcast

The deal between Disney and Comcast was struck in May 2019, which gave Disney 67% of the control over the OTT streaming platform. Comcast has the right to sell its ownership stake to Disney as early as January 2024.

Disney recently announced that they are cutting 7,000 jobs and slashing $5.5 billion in costs as part of a larger reorganization. Iger ran the company for 15 years but stepped down from his role in 2020. Bob Chapek succeeded him, but when the company's stock fell in the latter part of last year, he was soon fired.

Iger rejoined the company and signed a 2-year contract. He has made it clear that he won't be staying any longer than necessary. He said:

"Well, my plan is to stay here for two years. That’s what my contract says, that was my agreement with the board, and that would be my preference as well"

He continued:

"Look, I’m going to be 72 years old tomorrow. I’ve put in almost 50 years. There are other things in life that I’d like to do. I’m also confident that the board will be able to identify an able successor. There are no plans right now for me to stay any longer"

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What is Hulu?

It is an OTT streaming platform launched on October 29, 2007. As of October 1, 2022, Hulu has 47.2 million subscribers.

Former CEO of the company, Jason Kilar, said the name comes from a Chinese proverb:

"Hulu is Mandarin for gourd. And so when we were launching Hulu, we thought, "what a great name that is." And it had this great sort of symbolism of the holder of precious things, which is the holder of premium content. "

The platform has films and TV series from studios including 20th Century Studios, Searchlight Pictures, Disney Television Studios, ABC, Freeform, and FX Networks, among others, as well as original programming.