Disney is officially taking complete control of Hulu by purchasing Comcast’s NBCUniversal remaining stake for nearly $439 million. This transaction brings an end to a drawn-out appraisal process and firmly places the streaming service under Disney’s sole ownership.
The acquisition stems from Disney’s November 2023 announcement that it intended to buy out NBCUniversal’s 33% interest in Hulu for a minimum of $8.6 billion. This price was based on Hulu’s agreed-upon minimum valuation of $27.5 billion, according to a regulatory document submitted by the company.
Disney has already been overseeing Hulu’s operations since 2019, the year Comcast relinquished its decision-making authority. While Comcast remained a stakeholder, its role became passive, essentially making it a silent partner. With this latest transaction, Comcast’s involvement in Hulu will officially end.
Hulu was launched in 2007 with the backing of major media firms aiming to combat the rising dominance of the internet by offering a centralized digital platform for their television content. Disney entered the Hulu partnership in 2009 with plans to provide shows from its flagship networks, including ABC, ESPN, and the Disney Channel.
A major shift in Hulu’s ownership occurred a decade later in 2019 when Disney secured a majority stake following its acquisition of 21st Century Fox. This strategic move expanded Disney’s reach in the streaming space and made Hulu a more integral part of its digital offerings.
The final stages of the valuation process revealed differences between the two appraisers assigned by Disney and NBCUniversal. In a filing made on Monday, Disney stated that its own appraiser determined a value below the $27.5 billion minimum, whereas NBCUniversal’s appraisal significantly exceeded that benchmark.
To resolve the discrepancy, a neutral third appraiser was brought into the process. This third-party evaluation ultimately determined that Disney would pay $438.7 million for NBCUniversal’s remaining share in Hulu.
Expressing satisfaction over the resolution, Disney CEO Bob Iger issued a statement saying, “We are pleased this is finally resolved. We have had a productive partnership with NBCUniversal, and we wish them the best of luck.” He further elaborated on the strategic significance of the acquisition by stating, “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.”
According to Disney, the deal is expected to close by July 24. Despite the size of the transaction, it is not anticipated to have any impact on the company’s adjusted earnings forecast for fiscal year 2025.
In response to the news, Disney’s stock experienced a slight uptick in morning trading on Tuesday, reflecting investor confidence in the move.
This development marks a critical juncture for Disney as it continues to align its streaming assets under a single strategic vision. Integrating Hulu more deeply into its broader digital ecosystem will allow Disney to better compete in a crowded market dominated by services like Netflix, Amazon Prime Video, and Apple TV+.
Having full control over Hulu offers Disney increased flexibility in content planning, bundling strategies, and platform management. It can now streamline decision-making across its streaming properties and build a more cohesive user experience. This approach is expected to benefit subscribers by offering access to a wider variety of content through a unified interface, spanning general entertainment, sports, and family programming.
Disney’s plans to merge Hulu content more closely with Disney+ and eventually ESPN’s streaming services illustrate a larger industry trend of consolidation in the face of mounting competition. Media companies are increasingly seeking to combine platforms and offer expansive content libraries to attract and retain subscribers.
While the exact mechanics of the integration have yet to be detailed, the move is poised to reshape the way Disney presents its streaming offerings. For consumers, the result could be simplified access to a broader selection of shows and films without needing to navigate multiple separate apps.
The resolution of this deal also signifies the end of an era for Hulu, which began as a joint venture among multiple media firms and has now become a wholly owned property of one of the world’s largest entertainment conglomerates. It reflects the larger transformation of the media landscape, where legacy companies are adapting to digital consumption patterns by consolidating assets and investing heavily in streaming.
For Comcast, the completion of the sale allows the company to step away from Hulu and focus on its own streaming endeavors, including its Peacock platform. Although Comcast remained financially linked to Hulu for several years after ceding control, this final payout concludes its involvement.
The valuation differences between Disney and NBCUniversal underscore the complexities involved in high-stakes media appraisals. With such a significant spread between appraised values, the presence of a third-party arbitrator was essential to ensure fairness and reach a final figure acceptable to both parties.
The nearly $439 million payout by Disney is the concluding chapter in a multi-year process that began with its 21st Century Fox acquisition and will likely shape its streaming strategy for years to come. Hulu, now completely within Disney’s portfolio, stands as a key component in the company’s mission to become the leading global provider of digital entertainment.
By consolidating its streaming brands under one umbrella, Disney is not only simplifying its operational model but also sending a clear signal to investors and competitors that it intends to be a dominant force in the next era of media consumption.
With the transaction closing in just a few weeks, all eyes will now be on how Disney executes the integration and capitalizes on the newfound control over Hulu’s content, infrastructure, and subscriber base.
In summary, Disney’s final payment of $438.7 million to Comcast concludes a protracted negotiation over Hulu’s valuation and results in full ownership of the platform. As Bob Iger stated, the acquisition clears the path for “a deeper and more seamless integration” of Hulu with Disney+ and ESPN, setting the stage for a more unified and powerful streaming offering.