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News Corp., Disney Said Discussing Control of Hulu Site
By Andy Fixmer & Christopher Palmeri - Mar 1, 2013 6:08 PM ET.
News Corp. (NWSA) and Walt Disney Co. (DIS) are in talks that may lead to one of the partners in the Hulu.com video website buying out the other, two people with knowledge of the situation said.
In that scenario, an agreement would hand control of Hulu to either News Corp. or Disney, said the people, who sought anonymity because the talks are private. The companies, which each own about a one-third stake, are also discussing selling Hulu or changing the business model, they said. Comcast Corp. (CMCSA)s NBC would remain a minority investor.
Disney prefers an advertising-focused business model, while News Corp. would like Hulu to rely on subscriptions, they said. Hulu offers both a limited free service and an expanded $8 a month offering called Hulu Plus. Both the free and subscription offerings include commercials.
The talks are in their early stages and a deal isnt guaranteed, the people said. The Wall Street Journal reported the talks earlier today.
Comcast is barred from an operational or board role due to an agreement with federal regulators related to approval of its NBC Universal acquisition in January 2011. The Philadelphia- based company gained 0.6 percent to $40.03 at the end of trading today in New York.
Disney, based in Burbank, California, gained 1.4 percent to $55.33 and New York-based News Corp. rose 1.2 percent to $29.14.
By Andy Fixmer & Christopher Palmeri - Mar 1, 2013 6:08 PM ET.
News Corp. (NWSA) and Walt Disney Co. (DIS) are in talks that may lead to one of the partners in the Hulu.com video website buying out the other, two people with knowledge of the situation said.
In that scenario, an agreement would hand control of Hulu to either News Corp. or Disney, said the people, who sought anonymity because the talks are private. The companies, which each own about a one-third stake, are also discussing selling Hulu or changing the business model, they said. Comcast Corp. (CMCSA)s NBC would remain a minority investor.
Disney prefers an advertising-focused business model, while News Corp. would like Hulu to rely on subscriptions, they said. Hulu offers both a limited free service and an expanded $8 a month offering called Hulu Plus. Both the free and subscription offerings include commercials.
The talks are in their early stages and a deal isnt guaranteed, the people said. The Wall Street Journal reported the talks earlier today.
Comcast is barred from an operational or board role due to an agreement with federal regulators related to approval of its NBC Universal acquisition in January 2011. The Philadelphia- based company gained 0.6 percent to $40.03 at the end of trading today in New York.
Disney, based in Burbank, California, gained 1.4 percent to $55.33 and New York-based News Corp. rose 1.2 percent to $29.14.
