Disney Breaks Out as Hulu Deal Reaches Finale, Setting Stage for Streaming Integration Push

Shares of Walt Disney Co. (NYSE: DIS) have surged 40% since early April, recently breaking through key resistance at the $115 level and powering up to $120 as of Tuesday afternoon. With momentum building and the stock now setting up a critical test of its 2024 highs near $123, the long-awaited resolution of Disney’s Hulu saga has emerged as a key catalyst. After years of legal wrangling, arbitration, and valuation disputes, Disney has now secured full ownership of Hulu—clearing the way for tighter integration of its streaming platforms and reinforcing CEO Bob Iger’s broader strategy for digital dominance.

On Monday, Disney disclosed it will pay Comcast’s NBCUniversal an additional $438.7 million to acquire the remaining 33% stake in Hulu, following a third-party appraisal that resolved a lengthy valuation standoff. The supplemental payment brings the total cost of Comcast’s Hulu stake to just over $9 billion, up from the initial $8.6 billion Disney had agreed to pay last year. The deal is expected to close by July 24 and will not impact Disney’s previously issued adjusted earnings guidance—critical for investors watching profitability as the company transitions its streaming operations.

The Hulu transaction not only eliminates an ownership overhang that has clouded Disney’s streaming strategy for years, but it also unlocks greater flexibility for bundling and platform integration. With full control, Disney plans to accelerate the merging of Hulu’s general entertainment offerings with Disney+ and the upcoming ESPN direct-to-consumer (DTC) service. This deeper bundling is aimed at improving user experience, boosting engagement, and reducing subscriber churn—issues that have increasingly defined streaming platform success in a competitive and fragmented market.

Hulu, launched in 2007, is one of the oldest and most established streaming services in the U.S., boasting over 55 million subscribers. It’s profitable, which stands in contrast to newer entrants like Comcast’s Peacock. Hulu hosts a deep library of legacy hits such as Grey’s Anatomy and Modern Family, as well as originals like Only Murders in the Building and The Handmaid’s Tale. It also serves as a distribution point for content from Disney-owned networks like ABC, FX, and National Geographic. With Hulu’s full library now under its umbrella, Disney is poised to leverage its entire ecosystem—linear TV, theatrical, streaming, and sports—more cohesively.

For Comcast, the final deal marks a lucrative exit. Hulu generated nearly $10 billion in proceeds for the company and helped create a streaming audience for its content before it pivoted to build out Peacock. While Peacock still trails significantly in scale—41 million subscribers versus Netflix’s 310 million and Hulu’s 55 million—Comcast is leaning hard into sports to boost adoption. Its rights portfolio includes the NFL, Premier League, Big Ten, and the upcoming Paris Olympics. Yet by ceding Hulu, Comcast leaves Disney with one of the most synergistic streaming portfolios in the market.

What investors will be watching next is how Disney executes the final integration. Bob Iger has been vocal about his belief that combining linear TV and streaming can unlock both top-line and margin growth. During a CNBC interview this week, Iger reiterated that keeping assets like ABC, FX, and ESPN within the same corporate structure allows Disney to amortize programming costs and aggregate audiences across platforms. That stands in contrast to recent spinoff moves from rivals like Warner Bros. Discovery and Comcast, both of which are decoupling linear networks from their studio and streaming businesses.

Iger also hinted that Disney+ might eventually stop reporting quarterly subscriber counts, taking a page from Netflix’s more profit-focused reporting playbook. “We’re focused on EBITDA and cash flow and growing margins,” Iger said. “At some point, what we’re mostly going to disclose is the bottom line.” This reflects a shift in investor expectations away from pure subscriber growth and toward sustained profitability—an area where Disney’s three-headed streaming strategy (Disney+, Hulu, ESPN+) has growing potential.

With full Hulu ownership now secured, Disney is in position to present consumers with an integrated product suite that spans family, entertainment, and live sports content. The looming ESPN DTC launch, likely timed with the start of the college football season, will serve as a major test of this new bundled approach. If executed well, Disney could regain lost ground in the streaming wars and establish itself as the only major player with a true cross-platform media ecosystem.

In the near term, shares of Disney appear to have broken out of their trading range, with the $123 level representing the next technical test. At current levels, the market seems to be rewarding the company not just for resolving the Hulu dispute, but for signaling operational clarity and a willingness to pivot toward profit-centric strategy in streaming—a long-overdue shift investors have been clamoring for.