LOS ANGELES—In a much-anticipated deal that will have major implications for the streaming landscape in the U.S., the Walt Disney Company has agreed to purchase the 33% stake in Hulu held by Comcast for at least $8.61 billion.
The agreement comes after months of speculation as to whether Disney would buy Comcast’s stake or sell its stake to Comcast.
The price could go higher if the final appraised value is increased.
Disney made the announcement following Comcast’s November 1 exercise of its right under the put/call arrangement between the two companies.
The deal will strengthen Disney’s streaming ambitions by giving it more freedom to allocate investments across its Hulu, Disney+ and ESPN streaming services and to bundle the services.
The sale will provide Comcast with cash to invest in Peacock and but it raises questions about the longer-term future of NBC broadcast network content on Hulu and Hulu's programming strategy.
Under the terms of the put/call arrangement, by December 1, Disney expects it will pay NBCU approximately $8.61 billion, representing NBCU’s percentage of the $27.5 billion guaranteed floor value for Hulu that was set when the companies entered into their agreement in 2019 minus the anticipated outstanding capital call contributions payable by NBCU to Disney, the companies said.
In announcing the deal, Disney said that under the appraisal process agreed to by Disney and Comcast, Hulu’s equity fair value will be assessed as of September 30, 2023, and if the value is ultimately determined to be greater than the 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 said the deal should be completed during the 2024 calendar year.
“We look forward to the appraisal process and the determination of Hulu’s fair market value which we expect will reflect the extraordinary value of the business," Comcast said in a statement.
