The Walt Disney Co. (NYSE: DIS) will pay NBCUniversal parent Comcast (NASDAQ: CMCSA) about $438.7 million to acquire the remaining 33% of Hulu it does not already own, ending a years-long, three-appraiser valuation dispute and giving Disney 100% control of the 18-year-old streaming platform.
The price—set just below Hulu’s $27.5 billion floor valuation agreed in 2019—reflects a midpoint between Disney’s below-floor estimate and NBCUniversal’s “substantially in excess” figure, according to Disney’s regulatory filing.
Disney has effectively operated Hulu since 2019, when Comcast ceded operational control in exchange for a guaranteed exit price; Tuesday’s announcement converts Comcast from silent partner to cash recipient.
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CEO Bob Iger framed the deal as strategic housekeeping rather than balance-sheet drama.
“Completing the Hulu acquisition paves the way for a deeper and more seamless integration of Hulu’s general-entertainment content with Disney+ and, soon, ESPN’s direct-to-consumer product, providing an unrivaled value proposition for consumers,” he said.
Translation, in this column’s view: expect a single Disney super-bundle, higher engagement, and fresh leverage in price negotiations with advertisers.
Financially, the cash outlay is immaterial to Disney’s $8.6 billion November 2023 payment for Comcast’s put option and leaves the company’s FY 2025 adjusted-EPS guidance intact.
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