- The bidding war between Disney (DIS +0.2%) and Comcast (CMCSA +0.1%) for the entertainment assets of Twenty-First Century Fox (FOX +1.2%, FOXA +1.4%) has an important impact for the cord-cut future: two different potential outcomes for streaming service Hulu.
- Hulu is co-owned by four different parties: Disney, Comcast and Fox each with 30%, and now WarnerMedia (T +0.8%) with 10% via the former Time Warner. Either Disney or Comcast would take 60% control of Hulu with a successful bid for the Fox assets.
- If Disney were in charge, expect Hulu to have less children's content (as Disney plans its own branded streaming service) and a focus on adult programming -- mostly from Disney and Fox, the WSJ notes.
- Meanwhile, Comcast is interested in investing with $40/month Hulu with Live TV to target cord-cutters and could make Hulu subscriptions available through its cable boxes. (Hulu's not currently on X1, though Netflix (NFLX +0.6%) and Sling TV (DISH -1.9%) are.) And programming mix, including children's content, would largely remain the same.
- And of course the loser in the bidding will still have a relatively large 30% minority stake in Hulu even though they'll see a different vision executed by the controlling partner.
- Now read: Who Will Catch Fox: Disney Or Comcast? A Rangeley Capital Discussion
Original article