Disney Acquires Comcast's 33% Hulu Stake for $4.387 Billion

Disney has finalized the acquisition of Comcast's 33% stake in Hulu, paying 4.387 billion dollars to complete the deal. This acquisition concludes a lengthy evaluation process that began in 2019, when Disney and Comcast agreed on a guaranteed minimum value of 2.75 billion dollars for Hulu. In 2023, Disney initially paid 860 million dollars as part of this agreement, reflecting the strategic importance of Hulu in Disney's streaming portfolio.

Disney's acquisition of Hulu is a significant move in its efforts to consolidate its streaming services. The company already owned two-thirds of Hulu through its acquisition of Fox's entertainment assets. The completion of this deal allows Disney to fully integrate Hulu with its other streaming services, Disney+ and ESPN+, creating a more seamless and comprehensive entertainment experience for subscribers. This integration is expected to enhance Disney's competitive position in the rapidly evolving media landscape.

The evaluation process, which was initially expected to conclude in 2024, involved disagreements between Disney and Comcast over Hulu's valuation. Disney's evaluators determined that Hulu's value was below the guaranteed minimum, while Comcast's evaluators from NBCUniversal assessed it to be significantly higher. The dispute was resolved by a third-party evaluator, as mandated by the U.S. Securities and Exchange Commission. The final transaction is anticipated to be completed by July 24.

Disney's CEO, Bob Iger, expressed satisfaction with the resolution of the acquisition, highlighting the productive partnership between Disney and NBCUniversal. He emphasized that the completion of this deal paves the way for deeper integration between Hulu and Disney+ content, as well as the upcoming launch of ESPN's direct-to-consumer streaming service. Disney has already begun integrating its existing services, which are currently bundled with ESPN+.

Comcast, through its subsidiary NBCUniversal, has been focusing on developing its own streaming service, Peacock, since its launch in 2020. A spokesperson for Comcast noted that Hulu has been a valuable asset, generating nearly 100 billion dollars in revenue and creating a significant audience for NBCUniversal's content. Comcast wishes Disney success with Hulu and acknowledges the collaborative management of their partnership.

As of March 29, Hulu has over 50 million subscribers, contributing to Disney's total streaming subscriber base of 180.7 million, primarily driven by Disney+. Comcast reported that Peacock has 41 million subscribers as of April. This acquisition positions Disney to leverage Hulu's extensive content library and popular original programming, further strengthening its presence in the streaming market. The deal is expected to have a minimal impact on Disney's adjusted earnings guidance for the fiscal year 2025, as the payment will be recorded in the non-controlling interest section of its income statement, reducing the net income attributable to Disney for the third quarter.