Disney is set to pay nearly $439 million to acquire Comcast’s NBCUniversal stake in the streaming service Hulu, thereby taking full control of the platform.
The acquisition process started in November 2023 with Disney now taking control of the 33% stake from Comcast.
The big picture: Disney has been in charge of Hulu since 2019 after Comcast relinquished its control, effectively becoming a silent partner in the streaming service.
- Hulu, established in 2007, was initially envisioned as an online platform for TV shows by a consortium of entertainment conglomerates.
- Disney joined the venture in 2009, aiming to offer content from ABC, ESPN and the Disney Channel.
- A resolution was reached after a protracted appraisal process, with Disney’s appraiser valuing the stake below the guaranteed floor value and NBCUniversal’s appraiser appraising it substantially higher.
- A third appraiser’s involvement led to the conclusion that Disney will pay $438.7 million for the Hulu stake, bringing closure to the valuation dispute.
What they’re saying: Disney CEO Bob Iger expressed satisfaction with the resolution.
- “We are pleased this is finally resolved. We have had a productive partnership with NBCUniversal, and we wish them the best of luck,” Iger said in a statement. “Completing the Hulu acquisition paves the way for a deeper and more seamless integration of Hulu’s general entertainment content with Disney+ and, soon, with ESPN’s direct-to-consumer product, providing an unrivaled value proposition for consumers.”
What we’re watching: The transaction is expected to be completed by July 24 and is not projected to impact Disney’s fiscal 2025 adjusted earnings forecast.
