Can You Invest in Hulu Stock?

    Hulu is a US-based streaming service that has become extremely popular, driving investors to try to invest in Hulu stock. It was launched in 2010 as a method to stream newly released TV series but has now expanded into a mainstream service offering entire movies, original content, and live TV alternatives. 

    Hulu offers thousands of movies and TV series, and it works on a variety of devices, allowing you to watch videos from anywhere. Depending on your advertising tolerance and what you want to view, you may choose from a variety of payment options. 

    History of Hulu

    Bruce Campbell, Peter Chernin, J.B. Perretta, Michael Lang, Beth Comstock, George Klawkoff, Darren Feher, and Jason Kilar are among the Hulu contributors. Hulu was launched in March 2006, with AOL, NBC Universal (now Comcast), Facebook, MSN, Myspace, and Yahoo! as “first distribution partners.” In late 2007, Jason Kilar was appointed CEO of Hulu. 

    When the Web site launched in late August 2007, with simply an announcement and no content, the name Hulu was picked. It asked visitors to provide their email addresses in order to participate in a forthcoming beta test. 

    Hulu beta testing

    Hulu began private beta testing by invitation in October 2007, and eventually enabled users to add friends. On March 12, 2008, Hulu was made available to the general audience in the United States. On October 29, 2007, the HULU Syndication network, conceived and produced by the NBC Universal team in New York City, was launched, followed by the Hulu.com destination site. 

    Hulu commenced the advertising campaign with a commercial featuring Alec Baldwin dubbed “Alec in Huluwood” during NBC’s Super Bowl XLIII broadcast. Since then, the commercial has appeared with Elise Dushku, Seth MacFarlane, Denis Leary, and Will Arnett. 

    Providence Equity Partners, the owners of Newport Television, was one of the first “outside” shareholders in July 2007, purchasing a 10% interest in the firm for a $100 million equity investment before the company was named as “Hulu.” Providence was claimed to have served as an “independent voice on the board” as a result of his investment. 

    The Walt Disney Company became a member of the Hulu consortium in April 2009, with intentions to distribute programming from ABC and Disney Channel. 

    Is there a Hulu stock you can invest in? 

    Since Hulu is a privately held joint venture, there is no Hulu stock available to the public. As a result, there is no unique Hulu stock price or ticker for the firm. Buying stock in the businesses that operate Hulu, such as Disney or Comcast, is the only method to invest in Hulu stock. 

    Alternatives to Hulu stock 

    Disney

    Investors can alternatively purchase shares of the Walt Disney Company (NYSE: DIS), which owns 67 percent of Hulu. By purchasing 21st Century Fox in March 2020, Disney acquired majority ownership in Hulu. In the acquisition, Disney also acquired the famous 20th Century Fox studio and Fox’s programming library. 

    The Walt Disney Company (DIS) is a popular investment since it is less expensive than Netflix (NFLX) and has previously paid dividends. On January 16, 2020, Disney paid a semiannual dividend of 88 cents per share. Because of the coronavirus, Disney has halted the dividend until further notice in May 2020. Disney has halted its dividend because the coronavirus has damaged parts of its industries, including theme parks and theatrical releases.

    Disney financials 

    On June 30, 2020, the Walt Disney Company announced a -$4.996 billion quarterly operating deficit. Disney’s quarterly revenue decreased from $20.858 billion on December 31, 2019, to $18.009 billion on March 31, 2020. Eventually declining to $11.779 billion on June 30, 2020. 

    The quarterly gross profit of Disney declined from $6.091 billion on March 31, 2020, to $3.883 billion on June 30, 2020. On March 31, 2020, Disney recorded a quarterly financing cash flow of $5.499 billion. On June 30, 2020, the quarterly financing cash flow increased to $8.303 billion. The quarterly financing cash flow is a record of the funds raised by a firm via the sale of debt or borrowing. 

    Disney is a cash-rich corporation. On June 30, 2020, the Magic Kingdom had $23.115 billion in cash and short-term investments. The cash and short-term investments increased from $14.339 billion on March 31, 2020, to $14.339 billion on March 31, 2021. Comcast is another company that investors may buy to obtain a piece of Hulu (CMSA). 

    Under a contract with Disney, Comcast will keep a 33 percent stake in Hulu until January 2024. 

    Comcast

    Comcast Corporation (NASDAQ: CMSA) and Disney struck a “put-call arrangement” in 2019 that might trigger the sale of Hulu in January 2024. Disney executives struck the agreement to prevent Comcast from selling its Hulu investment to a competitor such as Netflix (NFLX). As a result of the agreement, Disney will be the first buyer of Hulu. 

    Comcast Corporation (CMSA) is a telecommunications giant that owns the Peacock video streaming service, and the NBC broadcast television network. It also owns DreamWorks Animation, the historic movie studio Universal, and a number of cable television networks. CNBC, USA, and MSNBC are among Comcast’s cable networks.

    Image source: Unplash

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