Disney, Fox Can’t Agree on Hulu’s Future

One might buy the other's stake in the website

   

hulu 630 300x300 Disney, Fox Can't Agree on Hulu's FutureVideo streaming website Hulu could soon see its ownership change.

Sources told Bloomberg that two of the website’s three co-owners, Disney (NYSE:DIS) and News Corp. (NASDAQ:NWSA), are discussing a possible sale of one party’s stake to the other. The two companies differ on what revenue model Hulu should adopt, with News Corp. backing a subscription-supported business, while Disney looks to increase advertising dollars.

hollywood 200x200 Disney, Fox Can't Agree on Hulu's Future
Disney Confirms ‘Star Wars’ Spin-Off Films

Despite on-going negotiations, it is still possible that neither company will buy out the other.

The remaining one-third stake in Hulu is controlled by Comcast’s (NASDAQ:CMCSA) NBCUniversal. However, an agreement with federal regulators prevents Comcast from taking an active role in Hulu’s management.

In January, Hulu announced that its CEO and co-founder, Jason Kilar, will leave the company by the end of this month.

Shares of News Corp. and Disney both rose fractionally in Monday midday trading.


Article printed from InvestorPlace Media, http://investorplace.com/2013/03/disney-fox-cant-agree-on-hulus-future/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.