Disney may sell its 67% stake in Hulu, says Citi

Citi analyst Jason Bazinet believes Disney (DIS) may sell its 67% stake in Hulu and secure the distribution rights to two Marvel characters held by Comcast (CMCSA) – Hulk and Namor. Based on Hulu’s level of profitability, the sale price and Disney’s use of proceeds, there is a wide range of outcomes from $3 share downside to $13 of upside per Disney share, the analyst tells investors in a research note. For Comcast, the firm sees a balanced risk/reward of $2-$3 per share in each direction, while the strategic and financial merits "supports a positive move for the equity." Following Disney’s results, the company seems less interested in a mass market direct-to-consumer offering, which raises the possibility that Disney may sell its Hulu stake, writes the analyst.