Summary
- The management team at Comcast just struck a major deal with Disney whereby it will sell to the firm the rest of its ownership in Hulu.
- This move shows AT&T the kind of deal that should have been made for its smaller stake.
- Comcast comes out of this looking nice, but the big winner, I believe, will be Disney down the road.
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In its latest move to prioritize and generate value for shareholders, the management team at Comcast (CMCSA) really showed AT&T (T) how to strike a deal. In its latest maneuver, the company struck a multi-faceted deal with The Walt Disney Company (DIS) whereby Comcast will unload itself of its stake in Hulu in time so that it can generate cash down the road for its shareholders. Though I am still adamant that the biggest winner here is Disney since it will end up with complete control over Hulu, the transaction struck up by Comcast is at least more in alignment with shareholders’ interests than AT&T’s was and it creates the opportunity for meaningful upside should everything go well.
