AT&T Selling Hulu Shares: Smart Move?

Analysis By: Zohair Mirza

Link:
https://www.wsj.com/articles/at-t-sells-hulu-stake-valuing-video-service-at-15-billion-11555370949?mod=searchresults&page=1&pos=11

Summary:

Hulu, an establishing multimedia service, is now owned by two major multimedia companies, has been trying to rival Netflix in the online streaming market.

Hulu is a company that is now worth around $15 billion and this growth has been exceptional jumping from $5.8 billion in recent years.

Until recently, this company's shares were divided into three companies: Disney, Comcast, and AT&T. Disney owns the majority by owning 60%, Comcast comes in second with 30%, AT&T at 9.5%, and others owning the remainder .5%. After AT&T cashes in on their stocks for a staggering $1.43 billion the 9.5% company shares are available to the market and are to be decided how Disney and Comcast will split them.

To put things into perspective, here are the numbers between Netflix and Hulu. Netflix's net worth as of today is a staggering $150 billion and has stacked up as much as 139 million people. On the other hand, Hulu is worth, as mentioned earlier, $15 billion and has managed more than 25 million subscribers.

Analysis:

A lot of multimedia companies are investing in Hulu and the results show that it has helped Hulu develop into a proper market holder. Ownership from Disney, Comcast can set Hulu up for success & even make Hulu a competitive platform next to Netflix.

AT&T selling their shares could be a mistake for the company, because in a prospecting company like Hulu the shares are most likely going to gain worth. Even though $1.43 billion is a quick turnaround, by staying in the game I believe that they could've gotten a whole lot more.

As a consumer, I've arrived at some hypotheses. Netflix has an edge over Hulu in the title variety, Netflix recommendations, and Netflix's productions that are appealing to the audiences. Although Hulu's popular content and iconic titles make Hulu a fan favorite platform for reminiscing but Netflix's global reach isn't suffering. If Hulu is consistent to attract consumers and delivering satisfaction, in the long run, I do see Hulu going head to head with the mighty Netflix.

Marketing:

On the marketing aspect, Netflix has become a household brand and is expanding to all corners of the world. Available in many countries, it really has become accessible to everyone.

This sort of brand management and customer satisfaction is achieved by an established team, exceptional company departments, analyzing your audiences' preferences, and market analysis. Hulu is really up against someone who's leading the way and are setting an example of global success.