What Could Comcast Buy Once It Sells Hulu to Disney? More Sports, Warner Bros. Discovery, Paramount, Other Options
If everything goes according to plan, Comcast will soon be flush with cash. The broadband, telecom, and cable provider is expecting to receive northwards of $9 billion from Disney at some point before the end of next year, as the House of Mouse is gearing up to purchase the 33% stake of Hulu that Comcast currently owns.
That will be a great relief to all those who have covered the seemingly endless back-and-forth between Disney and Comcast regarding the future of Hulu. Before purchasing the service outright, Disney is reportedly planning to bring Hulu together with Disney+ in what the company is calling a “one-app experience.” But it will also leave Comcast with money to spend, and reports are already surfacing regarding what the company’s CEO Brian Roberts might do with his newfound largesse.
In veteran media reporter Claire Atkinson's newsletter, The Media Mix, she reports that behind the scenes, talks are heating up between Roberts and Warner Bros. Discovery CEO David Zaslav once again. The two discussed a merger of WBD and NBC at the Allen and Co. Sun Valley Conference in July of 2021, before Discovery had even completed its acquisition of WarnerMedia. Talk of the two companies combining has continued ever since, but the tenor of the conversation has shifted; at first, discussions involved WBD purchasing Comcast. Now, the discussion is headed in the other direction.
Allen and Co.’s annual conference is coming up soon, and Atkinson reports that Roberts is still interested in acquiring WBD. Both companies deny any merger and acquisition talks have taken place, but multiple sources familiar with both companies say that provisional discussions are ongoing and that banks are being brought to the table. The $9+ billion Roberts expects to get for Hulu won’t cover the entirety of a WBD acquisition, but it would pay for a big chunk.
There are other assets that Comcast could pursue with its Hulu money, as well. Atkinson reports that Zaslav might have an eye on acquiring Paramount Global instead of selling his company to Comcast, but could the latter conglomerate swoop in and make a purchase instead? A combination of Peacock and Paramount+ would instantly offer the most live sports of any subscription video streaming service, plus a huge array of TV and movies. However, this one would be hard to sell regulators on, as it would give Comcast control of two of the four major broadcast channels in CBS and NBC.
More realistically, Comcast could make a play for the AMC cable channel family, and its streaming cohort AMC+. AMC is looking to slash spending and potentially bundle its several streaming services together, and is in full-on cost-saving mode. Purchasing the networks would give Peacock an instant boost to its prestige TV library, bringing shows like “Interview with the Vampire” and “The Walking Dead” franchise to the platform.
Lionsgate is another possibility, as it is potentially looking to spin off its movie studio in order to focus its financial attention on its cable channel/streaming service STARZ. Lionsgate films like the “The Hunger Games: The Ballad of Songbirds and Snakes” and the “John Wick” franchise would fit right in alongside Universal movies on Peacock.
What about more sports? Peacock already offers exclusive coverage of the French Open, one of the four Grand Slam tournaments held every year. Perhaps Comcast might pursue an acquisition of the Tennis Channel, which would allow it to show every Grand Slam event, plus dozens more ATP and WTA tournaments throughout the year. The channel is extremely popular amongst the sport’s diehard fans, and given the regional sports network issues that parent company Sinclair Broadcasting Group is having lately, it might be willing to sell if the price is right.
There are other possibilities in the sports arena, as well. Comcast could make a play for more exclusive NFL games, or bid on the streaming-exclusive package of NBA games that league reportedly wants to sell in its next media contract. The company might even try to make a play for Endeavor, which now owns both the WWE and UFC, though such a deal might be out of Comcast’s price range even with the extra $9 billion from Disney.
With that much extra change jingling around in Roberts’ pockets, the list of things that Comcast could purchase is far longer than the list of things it couldn’t. The sale of Hulu has to actually be completed before Comcast can spend the proceeds, but once it’s done the company could quickly become the center of big M&A talks.
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