Who Owns Hulu: The American Streaming service

Hulu, an online streaming service that offers footage of films and TV series, is owned by The Walt Disney Company. 

Hulu was Launched on October 29, 2007, by NBC Universal, the parent company of NBC and Universal Studios, and News Corporation, the parent company of Fox Broadcasting Company and 20th Century Fox. Providence Equity Partners contributed $100 million to the project, and AOL, MSN, Myspace, and Yahoo! provided online distribution agreements.

The Walt Disney Company acquired 20th Century Fox in 2019 and now has a controlling stake in Hulu. Disney also bought WarnerMedia’s stake in Hulu, and it was declared that Disney would purchase Comcast’s stake in Hulu after 2024, making Disney the company’s sole owner.

Who Owns Hulu?

Currently, Hulu is owned by Comcast and Walt Disney. Disney owns 67% of the shares, while Comcast owns 33%. Disney has, however, declared its intention to purchase Comcast’s stake for $8.61 billion by early 2024, making it the sole owner of Hulu.

On October 29, 2007, a private “beta” version of the service was introduced, and on March 12, 2008, Hulu was made available to the wider Internet community. On April 30, 2009, The Walt Disney Company announced that it had acquired a controlling interest in Hulu and would make certain of its feature films and television shows available through Hulu and affiliated Web partners like AOL.

Image source: CNN

The Walt Disney Company

Walt Disney and Roy O. Disney, two brothers, began Disney as the Disney Brothers Cartoon Studios on October 16, 1923. Early in 1923, Kansas City, Missouri-based animator Walt Disney produced a short film called “Alice in Wonderland,” in which a young girl, portrayed by child actress Virginia Davis, interacted with animated figures. After Walt Disney’s brother Roy O. Disney and his former company Laugh-O-Gram Studios filed for bankruptcy in 1923, Walt Disney made the decision to relocate to Hollywood. 

A full series of Alice Comedies may be distributed by Margaret J. Winkler, the film distributor and head of M.J. Winkler Productions, if Disney joined her as a production partner. Walt and Roy founded the Disney Brothers Cartoon Studio that same year, where they continued to make animated films following Alice. After work on the Hyperion Street Disney studio concluded in January 1926, the name was modified to The Walt Disney Studios.

Disney, one of the largest and most famous corporations worldwide, is placed 53rd on the Fortune 500 list of the largest American companies by revenue as of 2022. Walt has received 26 of the 135 Academy Awards that the studio has won since its establishment. The company is credited with revolutionizing the business of theme parks and producing some of the best films ever made.

The Walt Disney Company, owner of Hulu. Image source: The New York Times

Owners of The Walt Disney Company

In the sections below, we are going to examine Disney’s ownership structure and highlight its biggest shareholders.

Top Individual Insider Shareholders

Robert A. Iger

1,150,138 Disney shares, or 0.06% of the outstanding shares of the business, are owned by Robert A. Iger. Iger leads Disney as both the board of directors’ chair and its executive chair. He was the company’s Chief Executive Officer (CEO) for fifteen years and its Chair for eight years until being appointed Executive Chair in February of this year. 

Iger significantly increased Disney’s size and influence while serving as CEO by growing the company internally and making a number of significant purchases, including Pixar (2006), Marvel (2009), Lucasfilm (2012), and 21st Century Fox (2019). As of May 2019, Forbes calculated Iger’s net worth to be $690 million.

Christine M. McCarthy

Christine M. McCarthy possesses 141,301 Disney shares in total, which amounts to 0.01% of the outstanding shares of the firm. McCarthy began working at Disney in 2000, and he presently serves as both the Chief Financial Officer (CFO) and Senior Executive Vice President. She is in charge of managing the organization’s global finances.

She held the positions of Executive Vice President, Corporate Real Estate, Alliances, and Treasurer until taking on the role of CFO in 2015. Ms. McCarthy held the positions of Executive Vice President and CFO at Imperial Bancorp prior to joining Disney in 2000. McCarthy is also a member of the Procter & Gamble Co. (PG) Board of Directors.

Alan N. Braverman

98,922 Disney shares, or 0.01% of the outstanding shares of the firm, are owned by Alan N. Braverman. Braverman serves as secretary, general counsel, and senior executive vice president. In January 2003, he was appointed Executive Vice President and General Counsel, and he currently oversees all legal matters for the corporation on a global scale. 

Braverman has held positions as deputy general counsel at The Walt Disney Company and executive vice president and general counsel at ABC Inc. In 1993, Braverman began working for ABC Inc. as deputy general counsel. This was two years prior to Disney’s acquisition of ABC Inc. and Capital Cities.

Top Institutional Shareholders

Approximately 63–65% of all outstanding Disney shares are owned by institutional investors.

Vanguard Group Inc.

Disney’s 13F filing for the fiscal year ending March 31, 2020, shows that Vanguard Group owns 137.8 million shares, or 7.6% of all outstanding shares. With around $6.2 trillion in international holdings within administration, the company’s primary business is the management of mutual funds and exchange-traded funds (ETFs). 

With over $151 billion in assets under management (AUM), the Vanguard S&P 500 ETF (VOO) counts as one of the corporation’s major exchange-traded funds (ETFs). Disney owns 0.83% of the shares of VOO.

BlackRock Inc

Disney’s 13F filing for the fiscal year ending March 31, 2020, shows that BlackRock owns 114.6 million shares, or 6.3% of all outstanding shares.With over $6.47 trillion in assets under management (AUM), the corporation primarily manages mutual funds and exchange-traded funds.With over $199 billion in AUM, the iShares Core S&P 500 ETF (IVV) is one of BlackRock’s largest ETFs. Disney owns 0.80% of the shares held by IVV.

State Street Corp.

Disney’s 13F filing for the fiscal year ending March 31, 2020, shows that State Street owns 75.0 million shares, or 4.1% of all outstanding shares. With almost $2.7 trillion in AUM, the company’s primary business is the management of mutual funds, exchange-traded funds, and other assets. With over $279 billion in AUM, the SPDR S&P 500 ETF Trust (SPY) is one of State Street’s largest ETFs. 0.81% of SPY’s holdings are Disney

Disney’s acquisition of Hulu

Disney obtained a majority 60% share in Hulu on March 20, 2019, when it acquired 21st Century Fox. Disney now owns 67% of Hulu, while Comcast has 33%. WarnerMedia sold its 10% investment in Hulu back to the firm on April 15, 2019, for a sum of $1.43 billion. On May 14, 2019, Comcast, the sole remaining shareholder, declared that it had reached a deal with Disney to relinquish control of the company and that Disney would buy its 33% holding by as early as 2024.

Comcast

Ralph J. Roberts’ acquisition of American Cable Systems signaled the start of Comcast’s journey into cable television. The business carefully increased its size in the 1990s by purchasing Jones Intercable, Inc. and gaining equity in Prime Communications, among other cable companies. These actions paved the way for Comcast to become a more powerful player in the cable broadcasting industry.

Comcast’s success can be attributed to both its dedication to technology innovation and its well-timed acquisitions. The launch of services such as Xfinity, which provides telephone, internet, and cable television services on an all-digital platform, demonstrated Comcast’s dedication to remaining at the top of technical innovation.

Ownership of Comcast

The ownership structure of Comcast Corporation is varied, with a range of investors owning shares in the business. According to the most recent data available, the ownership distribution is as follows:

Institutional Investors

Because they possess around 86% of the total value of the shares of Comcast, institutional investors have a substantial ownership stake in the company. Large financial institutions’ strong faith in Comcast’s accomplishments and future prospects is demonstrated by this significant institutional ownership.

General Public and Retail Investors

The public, which includes individual investors, owns 14% of Comcast. Even though this percentage is lower than institutional ownership, it nevertheless indicates that private investors can access a certain amount of the company’s shares.

Individual Ownership

It is said that Comcast is a family-run company. The company’s chairman and CEO, Brian L. Roberts, is the son of Ralph J. Roberts, the founder (1920–2015). Roberts has “undilutable 33% voting power over the corporation,” since he owns or controls all Class B supervoting shares but only 1% of all Comcast shares. Susan P. Crawford, a legal expert, claims that he now has “effective influence over [Comcast’s] every move.” He was among the best-paid executives in the US in 2010 with a total salary package of over $31 million.

Comcast’s Merger with AT&T Broadband

The historic merger of Comcast with AT&T Broadband in 2002 marked a turning point in the company’s history. With this transaction, Comcast gained a significant market share and the ability to serve almost 22 million video subscribers in several states. Following decisions by their respective boards of directors, AT&T Broadband and Comcast Corporation announced their intention to merge on December 19, 2001. 

Together, the transactions had a $72 billion worth and had covered more than 22 million customers nationwide. The combined business was initially intended to be called AT&T Comcast Corporation, and each of the two companies would have contributed five members, including two external members, to the board of directors.

AT&T underwent a corporate reorganization in 2002. With the agreement completed, AT&T Broadband was acquired by Comcast using the name “Comcast Corporation” in mid-November 2002. With the acquisition, Comcast became a formidable player in the telecom industry, representing a huge advancement. 

Comcast’s ownership of Hulu

Comcast’s astute acquisition of Hulu is evidence of its adeptness in managing the rapidly changing streaming services market. According to recent developments, Disney owns 67% of Hulu, while Comcast owns 33% of the company. Over time, the ownership structure has changed, with Comcast retaining its strategic position and Disney acquiring a strong position through acquisitions. Disney, however, just declared that it intends to acquire Comcast’s ownership of Hulu. 

Disney will own 100% of Hulu after the entertainment behemoth revealed on Wednesday that it “expects it will pay” $8.61 billion to purchase Comcast’s 33% share. Long-running rumors concerning Hulu’s future were put to rest by this contract, but prior to a final sale price being decided upon, an appraisal procedure that is anticipated to be finished in 2024 will need to be conducted in order to determine the streaming service’s true value.

The bottom line

The Walt Disney Company and Comcast have played key roles in the major changes to Hulu’s ownership. Disney became the sole owner of Hulu when it formally purchased the remaining 33% from Comcast in November 2023. The recent takeover highlights the constantly changing dynamics of the streaming market and demonstrates Disney’s commitment to reshaping Hulu’s future. 

Disney is consolidating its influence over Hulu’s programming and operations through this strategic move, which will facilitate a more seamless merger with its wider streaming portfolio.

If you’re interested in exploring ownership structures of other major corporations or brands, check out our articles on entertainment giants Lionsgate and Paramount.