Disney to buy remaining Hulu stake from Comcast
The Walt Disney Company made a significant announcement today regarding the acquisition of Comcast Corp.’s 33% stake in Hulu, LLC. This move follows Comcast’s exercise of its right under the put/call arrangement between the two companies on November 1. The acquisition of Comcast’s stake aligns with Disney’s strategic streaming objectives, solidifying its position in the rapidly evolving streaming landscape.
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According to the terms of the put/call arrangement, Disney is expected to pay approximately $8.61 billion to NBC Universal (NBCU) by December 1. This amount represents NBCU’s percentage of the $27.5 billion guaranteed floor value for Hulu, as established in the agreement between the two companies back in 2019. The calculation factors in the anticipated outstanding capital call contributions payable by NBCU to Disney.
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As part of the agreement, an appraisal process will determine Hulu’s equity fair value as of September 30, 2023. In the event that the value surpasses the guaranteed floor value, Disney will compensate NBCU with its percentage of the difference between the equity fair value and the guaranteed floor value.
While the exact timeline for the appraisal process remains uncertain, the expectation is that it should conclude during the 2024 calendar year. This strategic move by Disney underscores its commitment to expanding its influence in the streaming industry and staying at the forefront of the ever-changing media landscape.
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