Listen: Disney Acquires Hulu
Breaking News: Disney Acquires Full Ownership of Hulu in $8.6 Billion Deal
• Disney has begun buying Comcast’s stake in Hulu, paying $8.61 billion by December 1.
• Through this merger, Disney can bundle Hulu content with other Disney brands for subscribers in one app.
• The value of Hulu has grown since the initial agreement, now boasting 48.3 million subscribers compared to Comcast’s Peacock streaming service, which has 28 million.
• An appraisal process is currently underway to determine Hulu’s fair market value, and completion is expected by 2024.
• The acquisition of Hulu showcases Disney’s ambition to become a leader in the streaming landscape.
Disney is set to take complete control of Hulu after formally beginning the process of buying Comcast’s stake in the streaming service. This deal will allow Disney to integrate Hulu into its popular Disney+ platform seamlessly.
The agreement states that Disney will pay NBCUniversal (NBCU) parent Comcast approximately $8.61 billion by December 1. This payment represents NBCU’s portion of the $27.5 billion guaranteed floor value for Hulu when it initially sold its stake to Disney in 2019.
Under the terms of the original deal, either NBCU or Disney could initiate the transaction as early as November 1, 2023, but the timetable was accelerated. This move solidifies Disney’s position in the streaming wars after acquiring 21st Century Fox’s assets.
Disney CEO Bob Iger previously announced plans to bundle Hulu content with other Disney brands in one app for subscribers. The merger aims to create a powerhouse streaming platform offering various entertainment options.
Comcast CEO Brian Roberts has described Hulu as a “valuable asset” that has only grown in worth since the initial agreement. As of Disney’s third quarter, Hulu had 48.3 million subscribers compared to Comcast’s Peacock streaming service, which had 28 million paid subscribers.
The appraisal process to determine Hulu’s fair market value is currently underway. While completion is expected in 2024, both parties’ bankers will assess and settle on the final value.
Disney’s acquisition of Hulu showcases its dedication to dominating the streaming landscape and solidifying its position as a leading entertainment conglomerate.