Is This the Big Reason Disney Is Buying the Rest of Hulu?
All in all, last quarter was a pretty good one for entertainment giant Walt Disney (NYSE: DIS). Revenue was up 5% year over year, while per-share earnings of $0.82 topped estimates of $0.70. Its streaming business notched a bit of forward progress too, adding subscribers and reducing its losses. That's the victory responsible for most of the stock's post-earnings pop.
There's a nagging reality regarding Disney's entire streaming operation (Disney+, Hulu, and ESPN+) that's too troubling to ignore, however. That is, it's still losing lots of money at the same time subscriber growth is slowing down. The company's plans to continue culling costs might not be enough to push this arm out of the red and into the black.
Now all of a sudden Walt Disney's recent decision to acquire the remaining one-third of Hulu it doesn't already own makes sense. It's just not clear if the move will matter enough.
Source Fool.com
