The Walt Disney Company is so prevalent in the world of multimedia that people in Ohio likely consume content released by the company without realizing it. Following a successful deal to acquire Fox that took effect on March 20th, Disney’s CEO confirms that the entertainment conglomerate is now eyeing a larger stake in Hulu, one of the most popular online streaming platforms for television and movies.
Recent data reflecting Disney’s revenue for the second quarter of the 2019 fiscal year reveal that the company has exceeded analysts’ estimates of $14.36 billion, showing Q2 revenue of $14.92 billion. The second quarter saw the finalization of Disney’s acquisition of Fox’s entertainment assets for $71 billion. Within the first eleven days, the acquisition resulted in $25 million in operating income and $373 million in revenue for Disney.
With an eye toward acquisition, it now appears that Disney hopes to convince Comcast to divest its stake in Hulu, with the Disney CEO recently confirming that he had discussed the possibility with executives at Comcast. Last month, AT&T sold Disney its 10 percent stake in Hulu, and Disney still owns its original 30 percent stake. Acquiring Comcast’s 30 percent portion would give Disney a 70 percent stake in Hulu. It is unclear what Disney intends to do with such a large stake if it were to acquire it as the company plans to launch a separate streaming platform devoted to its own content later this year.
Business acquisitions can involve great rewards, but the risks are often high as well. It may be a good idea for businesses large and small to have an attorney advise them on matters related to aspects of business and commercial law.