Disney to pay $438.7M more for full control of Hulu, securing NBCU's remaining stake and strengthening its position in the competitive streaming market.

Disney to pay $438.7M more for full control of Hulu, securing NBCU's remaining stake and strengthening its position in the competitive streaming market.

In a significant move to solidify its dominance in the competitive streaming market, Disney has agreed to pay an additional $438.7 million for full control of Hulu. This transaction secures Disney's remaining stake in NBCUniversal (NBCU) and strengthens its position in the streaming landscape. The deal, which comes amidst increasing market consolidation and competition, underscores Disney's strategic focus on its direct-to-consumer offerings.

The acquisition of Hulu's remaining stake from NBCU will provide Disney with 100% ownership of the streaming service, which has been a key player in the streaming wars since its inception. Disney has been gradually increasing its stake in Hulu since 2019, when it acquired a majority stake in the streaming service as part of its broader strategy to bolster its streaming portfolio.

The deal is expected to be completed in the coming months, with Disney paying the additional $438.7 million to NBCU. This transaction follows Disney's recent acquisition of 21st Century Fox's entertainment assets, which included a significant content library that has been instrumental in growing Disney+'s subscriber base.

The strategic move to acquire full control of Hulu aligns with Disney's broader goal of creating a more integrated and cohesive streaming ecosystem. By owning both Disney+ and Hulu, Disney can offer a more comprehensive streaming experience to consumers, potentially reducing churn and increasing subscriber retention.

The deal also comes as Disney is expanding its international presence and investing heavily in content production for its streaming services. In the third quarter of 2024, Disney+ reported 153.8 million global subscribers, marking a significant growth compared to the same period in the previous year [1].

This acquisition is part of Disney's broader strategy to capitalize on the growing demand for streaming services and to compete effectively with other major players such as Netflix, Amazon Prime Video, and Apple TV+. By securing full control of Hulu, Disney is positioning itself to leverage the combined content libraries and subscriber bases of both services.

References:
[1] https://en.wikipedia.org/wiki/Disney%2B