Disney & Comcast Finally Settle on a Price for Hulu
Disney (DIS) and Comcast's (CMCSA) NBC Universal have reached an agreement for Hulu. NBC Universal has exercised its put/call agreement that requires Disney to acquire its remaining 33% stake in Hulu, which is something Disney already wanted.
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Disney already paid NBC Universal $8.6 billion for its Hulu stake. Following three appraisals of the remaining value it owes for the Hulu stake, it will pay another $438.7 million to NBC Universal. This agreement is expected to close by July 24, 2025.
Disney is expected to exclude the Hulu payment from its adjusted earnings per share, meaning it won't affect the company's current guidance. It will also list the payment as Net income attributable to noncontrolling interests, which will reduce its Net income attributable to Disney in its fiscal third quarter.
What This Means for Hulu
With this deal, Disney will take full ownership of Hulu. The streaming service was previously split three ways between Disney, Comcast, and Fox. However, Disney boosted its Hulu stake to roughly two-thirds with its $71.3 billion purchase of Twenty-First Century Fox in 2019. It then announced plans in 2023 to take full control of Hulu through a deal with Comcast.
After Disney obtains Hulu, it will generate profits from all 50 million of the streaming service's subscribers. This will bring its total subscriber count to 180.7 million, including Disney+ and ESPN+. Disney will also gain the ability to freely integrate Hulu into its streaming services.
DIS stock was down slightly on Tuesday while shares of CMCSA scored a slight increase.
Turning to the TipRanks comparison tool, traders will see which stock analysts prefer. Disney has the better consensus rating at Strong Buy, compared to Comcast's Moderate Buy. Even so, its price target of $124.53 only offers a potential 7.67% upside, compared to CMCSA's $40.86 and 18.09% upside.
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