Introduction to the Acquisition

Disney has agreed to pay Comcast $438.7 million for its stake in the streaming service Hulu, concluding a years-long appraisal process. In 2023, Disney announced it intended to buy Comcast’s 33% stake in Hulu. At the time, Disney paid $8.6 billion, which reflected Hulu’s guaranteed minimum value of $27.5 billion. The two companies had agreed on that floor in 2019.

Background of the Deal

Disney’s announcement came as no surprise as it was widely reported that Disney was looking to take full ownership of Hulu. Disney took two-thirds ownership of Hulu when it acquired Fox Corp.’s entertainment assets. Following that initial payment, Disney and Comcast entered into an appraisal process that was originally expected to conclude in 2024.

Appraisal Process and Valuation

Disney said its appraiser had reached a valuation below the guaranteed floor, while the appraiser for Comcast’s NBCUniversal "arrived at a valuation substantially in excess of the guaranteed floor value." The process was concluded by a third appraiser on Monday, according to an SEC filing. The final transaction is expected to close on or before July 24.

Impact on Financials

Disney will record the payment in its "net income attributable to noncontrolling interests," which will then reduce "net income attributable to Disney" in its fiscal third quarter income statement. It’s not expected to impact Disney’s prior guidance for fiscal 2025 adjusted earnings.

Reaction from CEOs

"We are pleased this is finally resolved. We have had a productive partnership with NBCUniversal, and we wish them the best of luck," said Disney CEO Bob Iger in a statement. Iger added that the completed acquisition paves the way for "a deeper and more seamless integration" of Hulu and Disney+ content, as well as the upcoming ESPN direct-to-consumer streaming app, called ESPN.

Integration and Future Plans

Disney has already begun integrating the two existing services, which are also offered together in a bundle with ESPN+, the current sports streaming offering. Comcast’s NBCUniversal has been focused on building up its streaming service, Peacock, since it launched in 2020.

Statements from Companies

"Hulu was a great start for us in streaming that generated nearly $10 billion in proceeds for Comcast and created an important audience for NBCUniversal’s world-class content," a Comcast spokesperson said in a statement Monday. "We wish Disney well with Hulu and appreciate the cooperative way our teams managed the partnership."

Subscriber Base

Hulu had more than 50 million subscribers as of March 29, according to Disney’s most recent earnings report. In total, Disney had 180.7 million streaming subscribers, the bulk of which come from Disney+. Comcast reported in April that Peacock had 41 million subscribers.

Conclusion

The acquisition of Hulu by Disney marks a significant step in the streaming industry, allowing for deeper integration of content and services. With the appraisal process concluded and the final transaction expected to close soon, both companies can now focus on their respective streaming services and future plans.

FAQs

Q: How much did Disney pay for Comcast’s stake in Hulu?

A: Disney paid $438.7 million for Comcast’s stake in Hulu, in addition to the initial $8.6 billion paid in 2023.

Q: What is the guaranteed minimum value of Hulu?

A: The guaranteed minimum value of Hulu is $27.5 billion, as agreed upon by Disney and Comcast in 2019.

Q: How many subscribers does Hulu have?

A: Hulu had more than 50 million subscribers as of March 29, according to Disney’s most recent earnings report.

Q: What is the name of Comcast’s streaming service?

A: Comcast’s streaming service is called Peacock, which was launched in 2020 and had 41 million subscribers as of April.

Q: What is the expected impact on Disney’s financials?

A: The payment is not expected to impact Disney’s prior guidance for fiscal 2025 adjusted earnings.

Procter & Gamble will cut 7,000 jobs, or roughly 15% of its nonmanufacturing workforce, as part of a two-year restructuring program. The layoffs by the consumer goods giant come as President Donald Trump’s tariffs have led a range of companies to hike prices to offset higher costs. The trade tensions have raised concerns about the broader health of the U.S. economy and job market.

Background on Procter & Gamble

P&G CFO Andre Schulten announced the job cuts during a presentation at the Deutsche Bank Consumer Conference on Thursday morning. The company employs 108,000 people worldwide, as of June 30, according to regulatory filings. P&G faces slowing growth in the U.S., the company’s largest market. In its fiscal third quarter, North American organic sales rose just 1%.

Challenges Facing P&G

Trump’s tariffs have presented another challenge for P&G, which has said that it plans to raise prices in the next fiscal year, which starts in July. The company expects a 3 cent to 4 cent per share drag on its fiscal fourth-quarter earnings from levies, based on current rates, Schulten said. Looking ahead to fiscal 2026, P&G is projecting a headwind from tariffs of $600 million before taxes.

Restructuring Plans

P&G, which owns Pampers, Tide and Swiffer, is planning a broader effort to reevaluate its portfolio, restructure its supply chain and slim down its corporate organization. Schulten said investors can expect more details, like specific brand and market exits, on the company’s fiscal fourth-quarter earnings call in July. P&G is projecting that it will incur noncore costs of $1 billion to $1.6 billion before taxes due to the reorganization.

Impact on the Job Market

P&G follows other major U.S. employers, including Microsoft and Starbucks, in carrying out significant layoffs this year. As Trump’s tariffs take hold, investors are watching Friday’s nonfarm payrolls report for May for signs of whether the job market has started to slow. While the government reading for April was better than expected, a separate reading this week from ADP showed private sector hiring was weak in May.

Stock Performance

Shares of P&G fell more than 1% in morning trading on the news. The stock has dropped 2% so far this year, outstripped by the S&P 500’s gains of more than 1%. P&G has a market cap of $407 billion.

Conclusion

The restructuring program announced by Procter & Gamble is an important step towards ensuring the company’s long-term success, but it does not remove the near-term challenges that the company currently faces. The job cuts and restructuring plans are a response to the slowing growth in the U.S. market and the challenges posed by Trump’s tariffs.

FAQs

Q: How many jobs will Procter & Gamble cut?
A: Procter & Gamble will cut 7,000 jobs, or roughly 15% of its nonmanufacturing workforce.
Q: Why is Procter & Gamble cutting jobs?
A: The company is cutting jobs as part of a two-year restructuring program in response to slowing growth in the U.S. market and the challenges posed by Trump’s tariffs.
Q: What is the expected impact of the tariffs on Procter & Gamble’s earnings?
A: The company expects a 3 cent to 4 cent per share drag on its fiscal fourth-quarter earnings from levies, based on current rates.
Q: What is the expected cost of the restructuring program?
A: P&G is projecting that it will incur noncore costs of $1 billion to $1.6 billion before taxes due to the reorganization.
Q: How has the stock performed in response to the news?
A: Shares of P&G fell more than 1% in morning trading on the news.

The Struggle to Find Skilled Workers in the Aviation Industry

The average age of a certified aircraft mechanic in the U.S. is 54, and 40% of them are over the age of 60, according to a joint 2024 report from the Aviation Technician Education Council and consulting firm Oliver Wyman, which cites Federal Aviation Administration data. The U.S. will be short 25,000 aircraft technicians by 2028, according to the report. This shortage of skilled workers is a major concern for the aviation industry, as it threatens to hinder the production and maintenance of aircraft.

The Impact of Retirement and Covid on the Industry

"A lot of them were hired on in the ’80s and early ’90s. You just start doing some math and you start saying at some point they’re going to retire," said American Airlines Chief Operating Officer David Seymour, who oversees the carrier’s more than 6,000 daily flights. The industry was already facing a retirement wave when Covid hit, and companies cut or offered buyouts to experienced workers — from those who build aircraft to those who maintain them to keep flying. "People forget that the aerospace industry was in a pretty serious ramp at the time pre-Covid. And then frankly, of course overnight we went from ramping to zero demand over time. And so we lost a lot of talent," said Christian Meisner, GE Aerospace’s chief human resources officer.

Efforts to Attract Younger Workers

To boost their ranks, airlines and big manufacturers of airplanes and their thousands of components are trying to get more younger people interested in the field. GE, along with its French joint venture partner Safran, makes the bestselling engines that power Boeing and Airbus top-selling jetliners, and has been ramping up hiring. The company has a strong retention rate and some employees earn their FAA licenses to work on airplane engines or airframes on the job. At GE’s engine plant in Lafayette, Indiana, about an hour outside of Indianapolis, base pay averages between $80,000 and $90,000 a year, based on qualifications and experience.

The Rewards of a Career in Aviation

Median pay for aircraft technicians or mechanics was $79,140 a year in the U.S. in 2024, compared with a nationwide median income of $49,500, according to the Bureau of Labor Statistics. The agency projects 13,400 job openings in the field each year over the next decade. American’s Seymour said that with new pay raises, technicians could make $130,000 a year at the top of their pay scale in nine years at the carrier. While many experts don’t expect jobs that have been shipped abroad like clothing manufacturing to come back to the U.S., high-value sectors tend to pay much more and are more likely to stick around.

The Challenge of Hiring in a Competitive Market

The impending worker shortages aren’t just for those who repair aircraft and engines. A shortfall of air traffic controllers has also stifled airline growth and raised concerns about safety in recent years. The Trump administration has said it will raise wages and ramp up hiring to try to reverse yearslong shortfalls. Manufacturing is about 9% of U.S. employment but "we all have a bit of a fetish with manufacturing because we focus on it more and than other sectors," said Gordon Hanson, a professor of urban policy at Harvard University. One problem with manufacturing jobs, Hanson said, is that workers aren’t very geographically mobile, and if factories reopen or hiring ramps up, that could make it harder to attract employees from other places.

Looking to the Future

Getting FAA licenses can take years, but the reward can be high. Some students are considering forgoing traditional four-year college degrees straight out of high school to get into the industry. "I’m thinking about going to college, but it’s whichever really comes first. If they give me an opportunity to go to the airlines, I’d like to do that," said Sam Mucciardi, a senior at Aviation High School in Queens, New York. The public school offers its roughly 2,000 students the option to stay on for a fifth year to earn their FAA licenses with training at the school.

Conclusion

The aviation industry is facing a severe shortage of skilled workers, with the average age of certified aircraft mechanics being 54 and 40% of them over 60. The industry is trying to attract younger workers by offering competitive pay and benefits, as well as providing training and education opportunities. However, the challenge of hiring in a competitive market and the need for geographical mobility are major concerns. As the industry looks to the future, it is clear that attracting and retaining skilled workers will be crucial to its success.

FAQs

Q: What is the average age of a certified aircraft mechanic in the U.S.?
A: The average age of a certified aircraft mechanic in the U.S. is 54.
Q: How many aircraft technicians will the U.S. be short of by 2028?
A: The U.S. will be short 25,000 aircraft technicians by 2028.
Q: What is the median pay for aircraft technicians or mechanics in the U.S.?
A: The median pay for aircraft technicians or mechanics was $79,140 a year in the U.S. in 2024.
Q: How many job openings are projected in the field of aircraft technicians or mechanics each year over the next decade?
A: The Bureau of Labor Statistics projects 13,400 job openings in the field each year over the next decade.
Q: What is the starting pay for technicians at GE’s engine plant in Lafayette, Indiana?
A: The base pay averages between $80,000 and $90,000 a year, based on qualifications and experience.