Disney has officially acquired Comcast’s NBCUniversal’s stake in Hulu for a whopping $439 million, thus taking full control of the popular streaming service. This move marks the end of a lengthy appraisal process that has been ongoing for several years.
In November 2023, Disney announced its plans to acquire a 33% stake in Hulu from Comcast for at least $8.6 billion. This amount was based on Hulu’s guaranteed floor value of $27.5 billion as stated in a regulatory filing. Disney has been running Hulu since 2019 when Comcast relinquished its authority to Disney, becoming a silent partner in the venture.
Hulu was established in 2007 and quickly gained popularity as a service backed by entertainment giants looking to provide an online platform for their TV shows. Disney joined forces with Hulu in 2009, intending to offer content from ABC, ESPN, and the Disney Channel. With Disney’s acquisition of 21st Century Fox a decade later, the company gained majority control of Hulu.
In a recent regulatory filing, Disney revealed that its appraiser valued Hulu below the guaranteed floor value during the initial phase of the appraisal process, while NBCUniversal’s appraiser assessed a valuation significantly higher than the guaranteed floor value. A third appraiser was brought in to mediate and determined that Disney would pay $438.7 million for Comcast’s stake in Hulu.
Disney CEO Bob Iger expressed his satisfaction with the resolution, stating, “We are pleased this is finally resolved. We have had a productive partnership with NBCUniversal, and we wish them the best of luck.” He also highlighted the potential for a more seamless integration of Hulu’s content with Disney+ and ESPN’s direct-to-consumer product, offering consumers an unparalleled value proposition.
The transaction is scheduled to close by July 24 and is not expected to impact Disney’s fiscal 2025 adjusted earnings forecast. Following this news, shares of Disney saw a slight increase in morning trading on Tuesday.
Overall, Disney’s acquisition of Comcast’s stake in Hulu signifies a strategic move to consolidate its presence in the streaming industry and enhance its offerings to consumers through a more integrated content platform.
