Disney will pay Comcast an additional $439M for its Hulu stake
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Disney will pay $439 million to purchase the last remaining part of Comcast's stake in Hulu, the company said in a regulatory filing Monday.
Why it matters: The deal ends a nearly two-decade-long, joint-venture journey for the streaming service.
Catch up quick: Disney agreed to buy Comcast's 33% stake in Hulu in November 2023 after Comcast's NBCUniversal said it would exercise its right to require Disney to buy.
- Disney paid an initial $8.6 billion, after setting a guaranteed floor value of $27.5 billion for the entire asset.
- The two sides went through a lengthy arbitration process over Hulu's fair value beginning last year to determine the price Disney would pay for the remainder of the asset.
- Disney argued it didn't need to pay anything extra for the remaining stake. NBCU said the asset was worth several billion dollars more.
Ultimately, a third-party appraiser said Disney owed NBCU just $438.7 million, valuing the entire Hulu asset at around $29 billion.
The big picture: The deal finally puts Hulu in the hands of just one owner, after years of complicated ownership structures.
- Hulu was created in 2007 as a joint venture between News Corp. and NBCUniversal. Outside investors, including Disney, subsequently retained small stakes.
- In 2012, Providence Equity, an early investor, sold its 10% stake back to the Hulu joint venture. Time Warner, which was later rebranded to WarnerMedia under AT&T's ownership, bought a 10% stake in 2016.
- AT&T sold its minority stake in Hulu back to the streaming video joint venture in 2019. The transaction valued Hulu at $15 billion, with AT&T's 9.5% interest valued at $1.43 billion.
- In 2013, News Corp. split off its media assets, including its stake in the Hulu joint venture, to a separate company called 21st Century Fox. Disney's stake in the joint venture increased to 66% in 2019 with its acquisition of 21st Century Fox.
What they're saying: "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. We wish Disney well with Hulu and appreciate the cooperative way our teams managed the partnership," a Comcast spokesperson said in a statement to Axios.
- "We are pleased this is finally resolved," Disney CEO Bob Iger said in the regulatory filing. "We have had a productive partnership with NBCUniversal, and we wish them the best of luck."
- "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."
What's next: Disney's acquisition of NBCU's interest in Hulu is expected to close on or before July 24, Disney said in the regulatory filing.
