The Walt Disney Company is poised to become the sole owner of Hulu after it agreed to buy Comcast Corporation’s one-third share of the streaming service. The move follows Comcast’s decision to trigger a sale option on November 1, solidifying Disney’s commitment to expand its digital footprint in the competitive streaming landscape.
According to the agreement reached between the entertainment giants in 2019, Disney will shell out approximately $8.61 billion for Comcast’s stake. This transaction is based on a guaranteed minimum valuation of Hulu at $27.5 billion, a valuation set during their initial deal.
Disney’s acquisition price reflects NBC Universal’s share minus the expected capital contributions NBCU would have made to Hulu. However, the final price tag could be subject to change. An appraisal process, as per the initial agreement, will determine Hulu’s fair market value as of September 30, 2023. Should this valuation surpass the floor value, Disney will pay Comcast an additional amount representing its share of the difference.
The comprehensive assessment and the final valuation of Hulu are anticipated to be completed in the calendar year of 2024, although the exact timing remains uncertain. This deal marks a significant step for Disney as it consolidates its streaming services, which include Disney+, ESPN+, and now full control over Hulu, strengthening its position as a leading force in the direct-to-consumer space.
