Disney Finalizes Hulu Deal with $438.7 Million Payment to Comcast
Disney has agreed to pay $438.7 million to Comcast to acquire its remaining stake in the streaming platform Hulu, ending a prolonged valuation process. This transaction grants Disney full ownership of the popular streaming service.
A Long-Awaited Deal Comes to a Close
Back in 2023, Disney announced its intention to buy out Comcast’s 33% stake in Hulu. This followed Disney’s initial payment of $8.6 billion, establishing Hulu’s minimum guaranteed value at $27.5 billion, a figure agreed upon in 2019. The deal stems from Disney’s acquisition of Fox’s entertainment assets, which had previously increased its stake in Hulu to about two-thirds ownership.
Since then, the two companies entered an appraisal process to determine the final price for Comcast's stake—originally expected to wrap up in 2024. Disney's valuation came in below the guaranteed floor, while Comcast’s NBCUniversal appraiser estimated a figure well above that floor. A third appraiser finally resolved the discrepancies, resulting in the agreed payment.
What This Means for Disney and Hulu
The acquisition is anticipated to close by July 24. Disney will record the payment under "net income attributable to noncontrolling interests," which will slightly reduce Disney's reported net income for the fiscal third quarter. However, this will not affect Disney's earnings guidance for fiscal 2025.
Disney CEO Bob Iger expressed satisfaction with the resolution, emphasizing the productive partnership with Comcast over the years. Iger pointed out that owning Hulu outright will foster a "deeper and more seamless integration" of Hulu with Disney+, as well as with the forthcoming ESPN direct-to-consumer streaming app, expected to bolster Disney’s streaming offerings.
Strengthening Disney’s Streaming Ecosystem
Disney has already begun efforts to integrate Hulu and Disney+, which are often bundled together alongside ESPN+. This strategic move is designed to enhance content accessibility and user experience across Disney's streaming platforms. As of March 29, Hulu boasted over 50 million subscribers and contributed significantly to Disney’s overall streaming base, which totals more than 180 million subscribers.
Comcast’s Streaming Focus Moves to Peacock
Meanwhile, Comcast continues to focus on building its own streaming service, Peacock, launched in 2020. A Comcast spokesperson reflected positively on Hulu’s role as a foundational streaming endeavor that generated nearly $10 billion for the company and built a valuable audience for NBCUniversal’s content.
Peacock reported having 41 million subscribers earlier this year, indicating a growing footprint in the competitive streaming landscape.
A Collaborative Transition and Future Outlook
Both Disney and Comcast emphasized the cooperative nature of their partnership throughout this transition. With Disney’s full control, Hulu is poised for tighter integration within the expanding Disney streaming ecosystem, further challenging rivals in the increasingly crowded market.
