Disney to pay Comcast $438.7 million to take full control of Hulu, ending lengthy valuation process

Disney has agreed to wage Comcast $438.7 cardinal for its involvement successful the streaming work Hulu, concluding a years-long appraisal process.

In 2023 Disney announced it intended to bargain Comcast's 33% involvement successful Hulu. At the time, Disney paid $8.6 billion, which reflected Hulu's guaranteed minimum worth of $27.5 billion. The 2 companies had agreed connected that level successful 2019.

Disney's announcement came arsenic nary astonishment arsenic it was wide reported by CNBC and others that Disney was looking to instrumentality afloat ownership of Hulu. Disney took two-thirds ownership of Hulu erstwhile it acquired Fox Corp.'s amusement assets.

Following that archetypal payment, Disney and Comcast entered into an appraisal process that was primitively expected to reason successful 2024.

Disney said its appraiser had reached a valuation beneath the guaranteed floor, portion the appraiser for Comcast's NBCUniversal "arrived astatine a valuation substantially successful excess of the guaranteed level value." The process was concluded by a 3rd appraiser connected Monday, according to an SEC filing.

The last transaction is expected to adjacent connected oregon earlier July 24. Disney volition grounds the outgo successful its "net income attributable to noncontrolling interests," which volition past trim "net income attributable to Disney" successful its fiscal 3rd 4th income statement. It's not expected to interaction Disney's anterior guidance for fiscal 2025 adjusted earnings.

"We are pleased this is yet resolved. We person had a productive concern with NBCUniversal, and we privation them the champion of luck," said Disney CEO Bob Iger successful a statement.

Iger added that the completed acquisition paves the mode for "a deeper and much seamless integration" of Hulu and Disney+ content, arsenic good arsenic the upcoming ESPN direct-to-consumer streaming app, called ESPN.

Disney has already begun integrating the 2 existing services, which are besides offered unneurotic successful a bundle with ESPN+, the existent sports streaming offering.

Comcast's NBCUniversal has been focused connected gathering up its streaming service, Peacock, since it launched successful 2020.

"Hulu was a large commencement for america successful streaming that generated astir $10 cardinal successful proceeds for Comcast and created an important assemblage for NBCUniversal's world-class content," a Comcast spokesperson said successful a connection Monday. "We privation Disney good with Hulu and admit the cooperative mode our teams managed the partnership."

Hulu had much than 50 cardinal subscribers arsenic of March 29, according to Disney's astir caller net report. In total, Disney had 180.7 cardinal streaming subscribers, the bulk of which travel from Disney+. Comcast reported successful April that Peacock had 41 cardinal subscribers.

Disclosure: Comcast owns NBCUniversal, the genitor institution of CNBC.