A new report suggests that Disney is considering investing in Hulu, the US streaming TV and movie service. If the report is correct and the investment comes to fruition, Disney boss Bob Iger could pursue his plan to roll out the streaming service to the rest of the world.
But before you cancel your Netflix subscription, a few things have to happen – starting with the evidence that Disney bought AT & T's stake in Hulu.
Currently, AT & T and its subsidiary Warner Media own 10% of the streaming service, but Variety has broken the news that the company plans to sell the house to the mouse for a potentially large amount of money (approximately $ 930 million).
This money would theoretically contribute to repay AT & T's allegedly declining business debt of approximately $ 1
That alone would not give Disney enough leverage to control Hulu's future. Added to this is the additional 30% Disney will own after acquiring 21st Century Fox, and Disney could own 70% of the streaming service.
Disney might own Hulu, so what?
Things get interesting here. During an investment call in November, Disney boss Bob Iger was asked about his investment in Hulu, especially what he would do after the sale of 21st Century Fox had been approved.
Iger responded to larger investments on the content page to make possible global expansion for the streaming service.
"Upon completion of the deal and having a 60% stake, we will meet with the Hulu management team and board to discuss opportunities for both global growth and content investment "Said Iger said. "But that's something we need to do after the deal is over."
It's hard to predict what Disney will do exactly when it finally has a majority stake in Hulu – and how this could work with or against its own streaming service – It's very likely that a global rollout will be in the works could.
- Do not forget Disney's other new streaming service, Disney +