HOLLYWOOD, California – Disney has finalized a deal to acquire Comcast’s stake in Hulu for $438.7 million, bringing an end to a protracted valuation process and securing full control of the popular streaming service.
Breaking: Disney Secures Hulu Ownership
The agreement marks the conclusion of a years-long appraisal process that began when Disney announced its intent to purchase Comcast’s 33% stake in Hulu back in 2023. At that time, Disney paid $8.6 billion, reflecting Hulu’s minimum guaranteed value of $27.5 billion, a figure both companies had established in 2019.
The announcement comes as no surprise, with reports from CNBC and others indicating Disney’s ambition to take full ownership of Hulu. This move follows Disney’s acquisition of Fox Corp.’s entertainment assets, which initially granted Disney a two-thirds ownership of Hulu.
Immediate Impact and Key Details
Following the initial payment, Disney and Comcast engaged in an appraisal process, initially expected to conclude in 2024. Disney reported that its appraiser valued Hulu below the guaranteed floor, while Comcast’s NBCUniversal appraiser arrived at a valuation substantially above it. A third appraiser settled the matter on Monday, according to an SEC filing.
The final transaction is anticipated to close by July 24. Disney will record the payment in its fiscal third quarter income statement, reducing “net income attributable to Disney” but not affecting its fiscal 2025 adjusted earnings guidance.
“We are pleased this is finally resolved. We have had a productive partnership with NBCUniversal, and we wish them the best of luck,” said Disney CEO Bob Iger.
Industry Response and Future Prospects
Iger added that the acquisition paves the way for a deeper integration of Hulu and Disney+ content, alongside the upcoming ESPN direct-to-consumer streaming app. Disney has already begun merging Hulu with its existing services, offered together in a bundle with ESPN+, the current sports streaming offering.
Meanwhile, Comcast’s NBCUniversal has been focusing on its own streaming service, Peacock, launched in 2020. A Comcast spokesperson remarked on the successful collaboration, stating, “Hulu was a great start for us in streaming that generated nearly $10 billion in proceeds for Comcast and created an important audience for NBCUniversal’s world-class content.”
By the Numbers
As of March 29, Hulu boasted over 50 million subscribers, according to Disney’s most recent earnings report. In total, Disney had 180.7 million streaming subscribers, with the majority from Disney+. In April, Comcast reported Peacock had 41 million subscribers.
What Comes Next for Disney and Hulu
The move represents a significant shift in Disney’s streaming strategy, with potential implications for the broader streaming landscape. By consolidating Hulu under its control, Disney aims to enhance its content offerings and streamline its services to attract a larger audience.
This development builds on Disney’s strategy to integrate its streaming platforms, creating a unified experience for subscribers. Industry experts suggest this could lead to further innovations in content delivery and user engagement.
As Disney looks to the future, the company remains focused on expanding its streaming dominance, with Hulu now fully under its umbrella. The timing is particularly significant as the streaming wars continue to heat up, with major players vying for viewer attention and market share.
According to sources familiar with Disney’s plans, the company is already exploring new content partnerships and technological advancements to bolster its streaming services.
With the acquisition complete, Disney’s next steps will likely involve strategic decisions to maximize Hulu’s potential and strengthen its position in the competitive streaming market.
