Disney Acquiring NBCUniversal’s Hulu Stake for $8.6 Billion
November 1, 2023
The Walt Disney Co. is now 100% owner of the Hulu subscription streaming video platform and related Hulu + Live TV online television service.
Disney Nov. 1 announced that it would acquire Comcast’s 33% ownership stake in Hulu for a minimum $8.6 billion. The acquisition of Comcast’s stake in Hulu at fair market value will further Disney’s streaming objectives, according to a Disney statement.
Under the terms of the put/call arrangement, by Dec. 1, the purchase price represents NBCU’s percentage of the $27.5 billion guaranteed floor value for Hulu that was set when Comcast and Disney entered into their agreement in 2019, minus a reported $567 million in outstanding capital call contributions payable by NBCU to Disney.
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Under the appraisal process agreed to by Disney and Comcast, Hulu’s equity fair value will be assessed as of Sept. 30, 2023, and if the value is ultimately determined to be greater than the $27.5 billion guaranteed floor value, Disney will pay NBCU its percentage of the difference between the equity fair value and the guaranteed floor value. While the timing of the appraisal process is uncertain, Disney anticipates it should be completed during the 2024 calendar year.
Among factors affecting the final appraisal include NBCUniversal pulling most its programming from Hulu, and opting instead to distribute the content on its branded Peacock service.
Hulu, which along with Netflix and Prime Video is a SVOD pioneer, ended the most-recent fiscal period with 48.3 million combined subscribers.