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

by Christopher Freeburn | March 4, 2013 12:05 pm

[1]Video streaming website Hulu could soon see its ownership change[2].

Sources told Bloomberg that two of the website’s three co-owners, Disney (NYSE:DIS[3]) and News Corp. (NASDAQ:NWSA[4]), 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.

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[5]) 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[6].

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

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/10/hulu-630.jpg
  2. could soon see its ownership change: http://www.bloomberg.com/news/2013-03-01/news-corp-disney-said-discussing-control-of-hulu-site.html
  3. DIS: http://studio-5.financialcontent.com/investplace/quote?Symbol=DIS
  4. NWSA: http://studio-5.financialcontent.com/investplace/quote?Symbol=NWSA
  5. CMCSA: http://studio-5.financialcontent.com/investplace/quote?Symbol=CMCSA
  6. will leave the company by the end of this month: http://investorplace.com/2013/01/hulu-ceo-to-step-down/

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