Hulu is one of the most popular streaming platforms in the United States, with a history marked by various acquisitions and mergers. Many people wonder whether Disney fully owns Hulu and what role Comcast plays in the platform. This article will provide insights into Disney’s acquisition of Hulu and who currently controls the service.
1. Who owns Hulu?
Hulu is currently co-owned by The Walt Disney Company and Comcast. Disney holds a 67% majority stake, while Comcast owns the remaining 33%. However, in early 2024, Disney announced its plan to acquire Comcast’s entire stake for $8.61 billion, making it the sole owner of Hulu.
The history and development of Hulu
Hulu was first launched on October 29, 2007, as a beta test. By March 12, 2008, it became widely available to users on the internet. Initially, Hulu functioned as a streaming platform that provided content from major television networks in the U.S.
A significant milestone in Hulu’s history occurred on April 30, 2009, when The Walt Disney Company announced its acquisition of a controlling stake in the platform. Following this deal, Disney began adding its movies and TV shows to Hulu while also partnering with other platforms, such as AOL, to expand its reach.
The Walt Disney Company
Disney was founded on October 16, 1923, by brothers Walt Disney and Roy O. Disney under the original name Disney Brothers Cartoon Studio. Driven by a passion for animation, Walt Disney produced the short film Alice’s Wonderland, starring child actress Virginia Davis, blending live-action and animated characters.
However, after his previous company, Laugh-O-Gram Studios, went bankrupt in 1923, Walt Disney decided to move to Hollywood in search of new opportunities. There, he and his brother signed a contract with distributor Margaret J. Winkler, head of MJ Winkler Productions, to produce the Alice Comedies animated series.
In 1926, the company was officially renamed The Walt Disney Studios, marking a significant step forward in the animation industry.
From a small animation studio, Disney evolved into one of the world’s leading entertainment conglomerates. As of 2022, Disney ranked 53rd on the Fortune 500 list, generating tens of billions of dollars in annual revenue.
Beyond filmmaking, Disney revolutionized the theme park industry with Disneyland and Walt Disney World, attracting hundreds of millions of visitors each year. Notably, Walt Disney won 26 Academy Awards, holding the record for the most Oscars received by an individual.
Disney’s success extends beyond films into the streaming market. With ownership of Hulu, Disney+, and ESPN+, the company is solidifying its position in the digital streaming space, competing directly with giants like Netflix and Amazon Prime Video.
Disney’s full acquisition of Hulu will not only strengthen its dominance in the streaming industry but also unlock opportunities to expand content, optimize advertising revenue, and enhance its subscription services in the future.
2. Disney’s acquisition of Hulu
Disney took a significant step in its expansion strategy by officially acquiring a majority stake in Hulu. On March 20, 2019, following its acquisition of 21st Century Fox, Disney increased its ownership in Hulu to 60%. Subsequently, on April 15, 2019, WarnerMedia decided to sell its remaining 10% stake in Hulu for $1.43 billion, raising Disney’s total ownership to 67%.
Not stopping there, on May 14, 2019, Comcast—the only major shareholder left with a 33% stake—reached an agreement with Disney. Under this agreement, Comcast immediately transferred full operational control of Hulu to Disney, while Disney secured the right to purchase Comcast’s remaining stake in Hulu by 2024. Once the deal is finalized, Hulu will become a fully Disney-owned streaming platform, opening up new opportunities for growth in the online entertainment sector.
3. Comcast
Comcast’s origins trace back to a key acquisition in 1963 when its founder, Ralph J. Roberts, acquired American Cable Systems. This marked the first step in building a powerful cable television empire.
During the 1990s, Comcast continued its expansion by acquiring Jones Intercable, Inc. and securing a stake in Prime Communications. These acquisitions helped Comcast solidify its position and become one of the largest cable television corporations in the United States.
Comcast’s success is not only attributed to its acquisition strategy but also to its commitment to technological innovation. The company developed and launched Xfinity, a service offering internet, telephone, and digital television, allowing Comcast to maintain a competitive edge in the rapidly evolving entertainment and telecommunications industry.
4. Comcast’s ownership rights
Comcast Corporation is one of the world’s largest telecommunications and entertainment conglomerates, with a diversified ownership structure comprising three main groups:
Institutional investors
Major financial institutions, including investment funds, banks, and asset management firms, hold approximately 86% of Comcast’s total shares. This reflects strong market confidence in the company’s growth potential.
Retail and public investors
The remaining 14% of shares are held by individual retail investors. While this percentage is relatively small, it ensures that the public can access and invest in Comcast through the stock market.
Private ownership
Comcast remains significantly influenced by its founding family. Brian L. Roberts, son of founder Ralph J. Roberts, currently serves as Chairman and CEO. Despite owning only 1% of Comcast’s total shares, he exercises strong control over the company by holding 100% of the high-voting Class B shares, granting him 33% of the voting power. This structure ensures his firm control over the corporation.
Disney has progressively gained control over Hulu through acquisitions since 2019 and is set to fully own the platform by purchasing Comcast’s remaining stake in 2024. This move expands Disney’s streaming ecosystem, strengthening its competitive position against rivals like Netflix and Amazon Prime Video. This milestone marks a significant turning point in Disney’s digital content strategy.
