Disney to pay almost $439 million to complete takeover of Hulu
Disney is set to pay NBCUniversal, owned by Comcast, nearly $439 million to acquire its stake in Hulu, thereby assuming full control of the streaming platform.
This agreement concludes an appraisal process that has been ongoing for several years. Back in November 2023, Disney announced its intentions to purchase Comcast's 33% stake in Hulu for a minimum of $27.5 billion.
Disney has been managing Hulu since 2019, when Comcast relinquished its authority, becoming a silent partner in the venture.
Hulu was initially established in 2007, rapidly evolving into a service supported by entertainment conglomerates aiming to combat the rise of the internet by creating an online platform for their television shows. Disney joined the partnership in 2009, with plans to offer content from ABC, ESPN, and the Disney Channel. A decade later, Disney solidified its control over the business through the acquisition of 21st Century Fox.
Disney said in a regulatory filing on Monday that its appraiser arrived at a valuation below the guaranteed floor value during the initial phase of the appraisal process, while NBCUniversal's appraiser arrived at a valuation substantially in excess of the guaranteed floor value.
A third appraiser was brought in and concluded that The Walt Disney Co. will pay $438.7 million for the Hulu stake.
'We are pleased this is finally resolved. We have had a productive partnership with NBCUniversal, and we wish them the best of luck," Disney CEO Bob 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.'
The transaction is anticipated to close by July 24. It's not expected to impact Disney's fiscal 2025 adjusted earnings forecast.
Shares of Disney rose slightly in morning trading on Tuesday.
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