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Signage is seen at the 2019 Deadline Contenders Hulu Reception at Paramount Theater on the Paramount Studios lot on April 07, 2019 in Hollywood, California.
Rachel Murray | Getty Images
Disney has agreed to pay Comcast $438.7 million for its stake in the streaming service Hulu, concluding a years-long appraisal process.
In 2023 Disney announced it intended to buy Comcast’s 33% stake in Hulu. At the time, Disney paid $8.6 billion, which reflected Hulu’s guaranteed minimum value of $27.5 billion. The two companies had agreed on that floor in 2019.
Disney’s announcement came as no surprise as it was widely reported by CNBC and others that Disney was looking to take full ownership of Hulu. Disney took two-thirds ownership of Hulu when it acquired Fox Corp.’s entertainment assets.
Following that initial payment, Disney and Comcast entered into an appraisal process that was originally expected to conclude in 2024.
Disney said its appraiser had reached a valuation below the guaranteed floor, while the appraiser for Comcast’s NBCUniversal “arrived at a valuation substantially in excess of the guaranteed floor value.” The process was concluded by a third appraiser on Monday, according to an SEC filing.
The final transaction is expected to close on or before July 24. Disney will record the payment in its “net income attributable to noncontrolling interests,” which will then reduce “net income attributable to Disney” in its fiscal third quarter income statement. It’s not expected to impact Disney’s prior guidance for fiscal 2025 adjusted earnings.
“We are pleased this is finally resolved. We have had a productive partnership with NBCUniversal, and we wish them the best of luck,” said Disney CEO Bob Iger in a statement.
Iger added that the completed acquisition paves the way for “a deeper and more seamless integration” of Hulu and Disney+ content, as well as the upcoming ESPN direct-to-consumer streaming app, called ESPN.
Disney has already begun integrating the two existing services, which are also offered together in a bundle with ESPN+, the current sports streaming offering.
Comcast’s NBCUniversal has been focused on building up its streaming service, Peacock, since it launched in 2020.
“Hulu was a great start for us in streaming that generated nearly $10 billion in proceeds for Comcast and created an important audience for NBCUniversal’s world-class content,” a Comcast spokesperson said in a statement Monday. “We wish Disney well with Hulu and appreciate the cooperative way our teams managed the partnership.”
Hulu had more than 50 million subscribers as of March 29, according to Disney’s most recent earnings report. In total, Disney had 180.7 million streaming subscribers, the bulk of which come from Disney+. Comcast reported in April that Peacock had 41 million subscribers.
Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.
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