Disney to pay almost $439 million to take full control of streaming service Hulu

Key Points

• Disney will pay $438.7 million to buy Comcast’s stake in Hulu, giving the company full control of the streaming service.
• The deal ends a multi-year appraisal process triggered by conflicting valuations, with a third appraiser determining the final price.
• CEO Bob Iger said the acquisition paves the way for seamless integration of Hulu’s content with Disney+ and ESPN’s direct-to-consumer offerings.
• The transaction, expected to close by July 24, is not expected to impact Disney’s fiscal 2025 adjusted earnings forecast.

Disney will pay Comcast's NBCUniversal nearly $439 million for its stake in Hulu, taking full control of the streaming service.

The move closes out an appraisal process that's dragged on for a few years. Disney said in November 2023 that it was acquiring a 33% stake in Hulu from Comcast for at least $8.6 billion. That amount reflected Hulu's guaranteed floor value of $27.5 billion, according to a regulatory filing.

Disney has run Hulu since 2019, when Comcast ceded its authority to Disney and effectively became a silent partner.

Hulu began in 2007 and quickly evolved into as a service backed by entertainment conglomerates who hoped to stave off the internet with an online platform for their own TV shows. Disney joined in 2009, planning to offer shows from ABC, ESPN and the Disney Channel. A decade later, Disney gained majority control of the business when it acquired 21st Century Fox.

Disney said in a regulatory filing on Monday that its appraiser arrived at a valuation below the guaranteed floor value during the initial phase of the appraisal process, while NBCUniversal’s appraiser arrived at a valuation substantially in excess of the guaranteed floor value.

A third appraiser was brought in and concluded that The Walt Disney Co. will pay $438.7 million for the Hulu stake.

“We are pleased this is finally resolved. We have had a productive partnership with NBCUniversal, and we wish them the best of luck," Disney CEO Bob Iger said in a statement. "Completing the Hulu acquisition paves the way for a deeper and more seamless integration of Hulu’s general entertainment content with Disney+ and, soon, with ESPN’s direct-to-consumer product, providing an unrivaled value proposition for consumers.”

The transaction is anticipated to close by July 24. It's not expected to impact Disney's fiscal 2025 adjusted earnings forecast.

Shares of Disney rose slightly in morning trading on Tuesday.