Disney will pay Comcast's NBCUniversal nearly $439mn (€384.02mn) for its stake in Hulu, taking full control of the streaming service.
The move closes out an appraisal process that's dragged on for years. Disney said in November 2023 that it was acquiring a 33% stake in Hulu from Comcast for at least $8.6bn. That amount reflected Hulu's guaranteed floor value of $27.5bn, 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 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 unrivalled value proposition for consumers.”
Disney+ has already started to integrate the two services, which can be bought as a bundle with ESPN+ sports streaming.
The transaction is anticipated to close by 24 July. It will reduce Disney's net income in the third fiscal quarter, although it’s not expected to impact Disney’s prior guidance for fiscal 2025 adjusted earnings.
Shares in Disney rose around 1% in morning trading on Tuesday.
