Hulu provides a streaming service, and the Walt Disney Company now owns the majority of Hulu shares. Hulu's streaming service now boasts over 42 million users and offers an astonishing selection of popular series, like The Handmaid's Tale and Nine Perfect Strangers.
With Hulu's success in the video streaming business, it's unsurprising that many consumers are interested in learning how to acquire Hulu stock directly or through an online broker. Given this demand, we've produced a comprehensive guide to Hulu stock (price), the company's history and present status, as well as the streaming service's prospective future.
We will address how to acquire Hulu stock (i.e., how to invest in Hulu even if it is not publicly listed) and how to analyze the stock market in this post.
Hulu is a popular premium streaming service in the United States, delivering live and on-demand television and movies, both with and without advertisements.
Hulu customers may simultaneously watch many channels on two screens, manage their favorite shows and movies, and enjoy high-quality sound and vision, among other things. Hulu offers an outstanding selection of award-winning original programming. Hulu had over 32 million paying members in the second quarter of 2020.
In 2007, the firm was created. At the time, the board was comprised of members from American financial firms and Disney, Fox, and Comcast shareholders.
The Walt Disney Company purchased 21st Century Fox in early 2019, giving Disney a 60 percent ownership in Hulu. Shortly thereafter, AT&T repurchased its own 10% investment in Disney. Disney and Comcast are now the only shareholders in Hulu. Comcast (CMCSA) controls almost a third of Hulu, while Disney owns around 67%. Comcast, on the other hand, said that it has committed to sell its 33% ownership in Hulu in the future, no early than 2024. Hulu's market capitalization will be decided at that point, but Disney believes the firm should be valued at a minimum of $27.5 billion. In May 2019, Disney acquired complete control of Hulu.
Who Is the Owner of Hulu Stock?
Hulu does not have a publicly listed stock. It is a Disney-Comcast joint venture.
Since Hulu's inception, several ownership changes have happened.
NBC Universal was bought by Comcast, News Corporation relinquished control to its subsidiary 20th Century Fox, and ABC/Disney and Time Warner acquired equity holdings.
Disney then purchased a 30% holding in 20th Century Fox and a 9.5 percent stake in AT&T (through Time Warner).
The Walt Disney Firm now controls 67% of the company, thereby granting them complete control. Comcast retains a 33% silent interest.
How Much Is Hulu Worth?
Hulu is not a publicly listed firm, and so does not have a stock price.
Hulu does not have a stock symbol because it is not a publicly listed corporation.
That said, because Hulu is owned by Disney (DIS) and Comcast (CMCSA), you may use those tickers to check on the performance of those two firms on your broker's website.
There is no Hulu stock price and probably never will be, as Hulu shares are not publicly traded. This is a subject we have discussed several times on Buy Shares In. In certain circumstances, such as with the Mars Candy Corporation, the company is not publicly listed. In other instances, such as Hulu, the corporations that hold it are publicly listed, but there is no option to invest just in the subsidiary.
It's even more confusing with Hulu shares since, unlike Facebook-owned WhatsApp and Instagram, Hulu has more than one parent company. It is a joint venture, with Disney (NYSE: DIS), 21st Century Fox (NASDAQ: FOXA), Comcast (NASDAQ: CMCSA), and Time Warner each owning a portion (NYSE: TWX).
Therefore, if you choose to buy in Hulu stock, you may potentially do so through one of these businesses. After all, Hulu's performance will reflect positively on the company's stock price. However, these are massive corporations with billions of dollars in revenue, and the revenue they earn from Hulu is a tiny part of that. They are unlikely to benefit as much from it; and, on the other hand, they are unlikely to suffer if everyone stops using it.
How Do I Buy Hulu Stock?
Because Hulu is a majority-owned corporation, it is not feasible to purchase its shares. Alternatively, you might invest in the company's parent businesses, Disney (DIS) and Comcast (CMCSA) (CMCSA).
Purchase Disney Stock
Disney is an exceptional firm with extraordinary assets in the entertainment industry, including resorts, cruises, amusement parks, television, and motion pictures. Additionally, there are two premium streaming services that are on the verge of surpassing 100 million users.
How to Purchase Disney Merchandise Directly from Disney
If you want to invest in Disney stock and earn some additional money, the ticker symbol for Disney is "DIS." It's not expensive to invest in Disney shares through The Walt Disney Company Investment Plan. This program enables you to purchase Disney stock directly from the company rather than through a brokerage firm.
To begin your stock purchase plan, you must complete a registration form and make an initial commitment of $200 or four $50 payments (minimum).
Hulu Share Price
Thus, what would the value of Hulu stock be if it existed? How much should you pay, and how much would Hulu stock cost? To be honest, it's difficult to say. According to the firms listed above, that would be a considerable chunk. These are pretty substantial stocks, and Hulu shares would almost certainly cost you a small fortune.
The same holds true if we base it on the revenue generated by this service. It generates over $1 billion in income, has an Alexa rank of 550, and has 12 million users. This may seem like a lot, and it is, when compared to lesser providers. When compared to Netflix, it appears unprofessional. Netflix earns more than $8 billion per year, is ranked in the top 50 by Alexa, and has close to 100 million members worldwide.
There is only one winner in the Netflix vs. Hulu duel. If you compare the Hulu stock price to the Netflix stock price, the former is likely to be significantly cheaper and more accessible, but the growth is also significantly more limited, the product is significantly less popular, and Hulu stocks are therefore likely to be significantly less profitable.
Naturally, if they existed. However, they do not. And unless and until this firm is sold off by all of those parent corporations and then listed on the stock market by the ultimate purchasers, the Hulu initial public offering will never occur, and Hulu stocks will never be available to the general public.
Why Are Investors So Enthusiastic About Hulu Stock?
As with Netflix, Hulu is altering the modern entertainment landscape. They are simple to set up and use, with large expenditures in original programming and a "no cable" service that streams directly to smart TVs.
Investors are interested in Hulu since it increased its American subscriber base by 10.7 million in 2019 and 2020.
What is the financial report for Hulu?
In terms of paying subscribers, Hulu trails Netflix (NASDAQ: NFLX). Hulu has 30.4 million premium customers as of December 2019, whereas Netflix had around 167 million global subscribers. Amazon Prime Video is another titan in the premium streaming sector. According to Amazon CEO Jeff Bezos, over 175 million customers watched TV series or films in the last year.
However, it should be emphasized that Hulu is currently only available in a few chosen countries (Japan and the United States), leaving lots of space for growth.
Hulu offers four subscription plans to suit a variety of client preferences: The Basic bundle is $5.99 per month (the greatest value), the Premium package is $11.99 per month, the Basic + Live TV package is $54.99 per month, and the Premium+Live TV package is $60.99 per month.
Robert Iger, the former CEO of Disney, has also made remarks expressing his support for Hulu.
If you're interested in delving deeper into the data, I recommend reading the Disney 2020 annual fiscal report, which provides some insightful information.
Investing in Hulu Stock
Hulu Disney Stock
Investing in Hulu is straightforward, given the Walt Disney Company (NYSE: DIS) owns 67% of the company.
Disney acquired a controlling share in Hulu in March 2020 when it acquired 21st Century Fox. Additionally, Disney acquired the famous 20th Century Fox film studio and Fox's programming library as part of the agreement.
Disney had access to a massive quantity of property as a result of the Fox acquisition, including The X-Men, Wolverine, The Fantastic Four, MASH, The Simpsons, Buffy the Vampire Slayer, Planet of the Apes, and Deadpool. Disney acquired possession of all Marvel superheroes save Spider-Man and Venom as part of the Fox purchase.
In the United States, Disney provides a video streaming package that includes Hulu, Disney+, and ESPN+ for $12.99 per month. Disney+ features programs from Disney, Marvel, Pixar, Lucasfilm (Star Wars), and National Geographic. ESPN+ broadcasts live sports events from the NBA, UFC, Major League Baseball, College Football, the National Hockey League, Tennis, Major League Soccer, College Basketball, EFL football, and PFL football.
ESPN+ does not broadcast several popular ESPN shows, including NFL football. Additionally, ESPN+ transmits unique sports news and analysis programming, as well as occasional dramatic programming with a sports theme.
Variety reports that Disney+ has garnered 28.6 million members in its first three months of operation between November 2019 and February 2020. At the end of 2019, ESPN+ has 6.6 million subscribers.
Disney Holdings
The Walt Disney Company (DIS) is a well-liked company since it is less expensive than Netflix (NFLX) and has historically paid dividends.
Disney's most recent semiannual dividend payment was 88 cents on January 16, 2020. In May 2020, Disney halted the dividend until further notice due to coronavirus.
Disney halted its dividend payment due to the devastation caused by the coronavirus in several of its companies, including theme parks and theater-released films. 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, and finally to $11.779 billion on June 30, 2020. Disney's quarterly net income decreased from $6.091 billion in March 2020 to $3.883 billion in June 2020.
Disney will require significant increase in streaming video income to offset losses elsewhere in the Magic Kingdom. Disney has financed its activities with massive sums of debt.
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 finance cash flow statement is a summary of the funds raised by a business through debt sales or borrowing.
Disney is a cash-strapped corporation. On June 30, 2020, the Magic Kingdom had $23.115 billion in cash and short-term investments. Cash and short-term investments increased to $14.339 billion on March 31, 2020, from $14.339 billion on March 31, 2019.
I believe Disney is a solid corporation because it possesses the capital to withstand a coronavirus outbreak. Disney have the financial resources necessary to make significant acquisitions. For example, Disney might expand Hulu into other countries or acquire large streaming video providers in emerging markets such as Indie. A significant and prudent acquisition for Disney would be to acquire Comcast's 33 percent stake in Hulu before 2024. Disney will not acquire full control of Hulu until January 2024 under the terms of its present deal.
Disney is a solid corporation with some potentially valuable assets, such as Disney+ and Hulu, as well as a sizable library of popular films and television episodes. Disney also carries significant liabilities, such as vacant theme parks and films that cannot be released in theaters. Consider the superhero flick Black Widow.
Hulu's Rivals
Numerous streaming services compete with Hulu. These businesses often have a substantial subscriber base and are well-established.
Several more streaming services, in addition to those listed below, compete with Hulu. If those streaming services go public, selling shares might result in more investment, providing those firms with additional capital and resources to compete with Hulu.
Prime Video on Amazon
This streaming place provides access to a variety of films.
Amazon is a publicly listed company with somewhat more than 200 million customers. Amazon Prime Video is offered to subscribers of Amazon Prime. While not everyone who possesses Prime subscribes to the video service,
In compared to Disney+, Amazon Prime video offers a more diverse selection of films. As these films span all genres and subjects, Amazon is better positioned to attract a broader audience.
Netflix
Netflix is a video streaming service that features feature films, animation, and documentaries. Netflix is not an advertisement-supported service, and as a video streaming service, it offers a variety of streaming packages (or subscription tiers as they are most commonly known).
Netflix is clearly more popular than Hulu, with over 205 million subscribers to Hulu's 42 million. Netflix's stock price fluctuates everyday and looks to be more expensive than Disney's.
Disney+
Disney+ is not exactly a rival to Hulu, but I've included it for comparison purposes. Disney+ is the home of Star Wars, Marvel, and several Disney+ original series.
Users can subscribe to Disney+ for a monthly or yearly fee to view award-winning and popular films. Disney+ has almost 115 million customers, significantly more than Hulu.
Disney+ is not truly a rival since, while both are streaming services, they provide vastly different content. Additionally, as previously stated, Disney controls the bulk of Hulu.
Hulu's Future
Disney chose to completely incorporate Hulu into its already-established management approach and service environment. That is a clear signal that no initial public offering is planned at the present. Quite the contrary, they intend to make Hulu the primary driver of the company's stock price.
As a result of this acquisition, they now have two principal streaming services: Disney+ and Hulu. While Disney+ is only another video streaming service, Hulu offers far more.
Hulu is an ad-supported streaming service. $5.99/month
Hulu on-demand video without advertisements $11.99/month
$54.99/month with commercials for live TV + streaming
Live TV service Plus ad-free streaming $60.99/month
The possibility for advertisement placements is the primary differentiation between them and their rivals. Subscribers have the option of paying a reduced monthly price. And there is where they can earn significant more revenue, which Netflix cannot.
Consider what would happen if Netflix decided to introduce an ad-supported membership service. That would be a red signal, given that they are currently publicly traded and have over 160 million customers. The resulting consequences would be unforeseeable.
For Hulu, the situation is much different. That is their principal model of subscription. If you look closely at Hulu's website, you'll see that the lowest plans are prominently displayed on the homepage. You may view the available add-on "no advertisements" just in the drop-down list.
However, what does this signify for the future of Hulu? That's straightforward; the likelihood is that Hulu will earn far more money per user by introducing adverts into video streaming than they would by just providing ad-free subscriptions.
FAQs
Who is more valuable, Netflix or Hulu?
Netflix is now the market leader. However, Disney now has a controlling stake in Hulu, and in January 2020, they chose to completely merge Hulu's services. And this demonstrates unequivocally where the potential originates.
Is Hulu a public company?
Hulu is not publicly traded on its own. However, Disney owns a majority stake in Hulu, and Hulu's profits go directly into Disney's balance sheets. If you want to invest in Hulu stock, you may do so by purchasing Disney stock.
Is Hulu planning an initial public offering?
IPOs were planned in the past when the firm was owned by a variety of stakeholders. Currently, Disney's majority owner Hulu has no plans for an initial public offering. Things might change if Disney seeks to raise funds in the future.
Is Fox the owner of Hulu?
No. Disney purchased 21st Century Fox in March 2019. Disney (DIS) owns 67 percent of Hulu, while Comcast (CMCSA) owns 33 percent.
Bottom Line
While it is not possible to purchase Hulu shares directly on the stock market, investors may purchase stock in the company's parent firms Disney (DIS) and Comcast (CMCSA) (CMCSA). This way, you may own a portion of Hulu in addition to other fantastic items from these firms.
Bear in mind that, while both Disney and Comcast appear to be safe options, it's always a good idea to educate yourself and conduct research before investing in any specific stock.
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