Disney will acquire complete control of Hulu by paying Comcast’s NBCUniversal around $439 million for its share of the streaming service.
An appraisal process that had been going on for a few years is now over. In November 2023, Disney announced that it would pay at least $8.6 billion to Comcast to acquire a 33% share in Hulu. According to a regulatory filing, that sum represented Hulu’s guaranteed floor value of $27.5 billion.
Since Comcast basically became a silent partner and gave Disney control over Hulu in 2019, Disney has operated the service.
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Since its launch in 2007, Hulu has developed into a service supported by entertainment companies who wanted to avoid the internet by offering their own TV series online. Disney joined in 2009 with the intention of providing ABC, ESPN, and Disney Channel programming. Disney acquired 21st Century Fox ten years later, giving it a controlling stake in the company.
In a regulatory filing on Monday, Disney stated that its appraiser’s initial appraisal result was less than the guaranteed floor value, whereas NBCUniversal’s appraiser’s result was significantly more than the promised floor value.
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The Walt Disney Company will pay $438.7 million for the Hulu stake, according to the findings of a third appraiser who was called in.
“We are happy that issue has been settled at last. Disney CEO Bob Iger issued a statement saying, “We have had a productive partnership with NBCUniversal, and we wish them the best of luck.” “The Hulu acquisition’s completion opens the door for a more thorough and smooth integration of Hulu’s general entertainment content with Disney+ and, soon, with ESPN’s direct-to-consumer product, offering consumers an unmatched value proposition.”
It is expected that the deal will conclude on July 24. Disney’s projected adjusted earnings for fiscal 2025 are not anticipated to be impacted.
Disney’s stock increased little Tuesday morning.
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