Business
Disney to Take Full Control of Hulu in $8.6 Billion Deal with Comcast
By Jake Beardslee · November 1, 2023
In brief…
- Disney to acquire Comcast's remaining 33% stake in Hulu for around $8.6 billion
- Comes after Comcast exercised its right to initiate sale under 2019 deal
- Acquisition will give Disney full control of Hulu to boost streaming goals
- Final valuation to be determined through appraisal process by Sept 2023
The Walt Disney Company announced on Wednesday that it will acquire Comcast’s remaining 33% stake in the popular streaming service Hulu. According to the statement, Disney expects to pay Comcast approximately $8.61 billion for its share.
This acquisition comes after Comcast exercised its right under an existing agreement between the two media giants to initiate the sale of its stake in Hulu. The deal, originally struck in 2019, included a guaranteed floor value of $27.5 billion for Hulu.
Under the terms, Disney will pay Comcast its percentage of that guaranteed amount, factoring in Comcast’s outstanding capital contributions to Hulu. The final valuation will be determined through an independent appraisal process by September 30, 2023. If Hulu’s fair value is deemed higher than the floor, Disney will pay Comcast the difference.
By acquiring Comcast’s minority share, Disney is poised to take full control of Hulu and further its streaming ambitions. The deal is expected to close in 2024 once the appraisal process establishes Hulu’s fair market value.
Acquiring Comcast’s stake furthers Disney’s efforts to position itself as a streaming leader alongside Netflix and Amazon. With full ownership of Hulu and the success of Disney+, the entertainment powerhouse continues to push aggressively into the direct-to-consumer streaming market.