Disney to Acquire Remaining Stake in Hulu for Expected $8.6 Billion

Disney has revealed its plans to acquire Comcast’s one-third ownership in Hulu for an estimated $8.61 billion. The acquisition aims to place the streaming platform completely under Disney’s ownership when the transaction concludes later this year.

In a brief statement, the company expressed that securing Comcast’s stake in Hulu at fair market value would significantly advance Disney’s streaming ambitions.

This agreement puts an end to prolonged speculations about Hulu’s future, yet a comprehensive appraisal process is still pending. Expected to be finalized in 2024, this evaluation aims to determine the streaming service’s accurate value before establishing the final sale price.

Disney initiated efforts to obtain the remaining shares of the platform back in 2019, operating under a previous agreement that valued Hulu at no less than $27.5 billion. Disney’s CEO, Bob Iger, publicly signaled the company’s intention to secure the remaining shares of the streaming service. He stated in March that Disney had been diligently analyzing the business landscape.

The decision to acquire the remaining shares of Hulu unfolds amidst significant transformations in Disney’s media sector. Iger hinted at the potential sale of its ABC division and the pursuit of a strategic partner for ESPN. This move reflects Disney’s swift transition from traditional television to streaming services.

Hulu, established in 2007, initially operated under joint ownership by several media companies, including 21st Century Fox, Comcast, and Time Warner, the former parent company of CNN. These entities have recently prioritized their individual streaming platforms.

In 2020, NBCU introduced its subscription-based streaming service, Peacock, shifting content from Hulu to this new platform, including notable shows from Bravo and NBC. Despite these changes, Hulu has sustained growth through successful original content like “The Handmaid’s Tale,” “The Bear,” and “Reservation Dogs,” attracting over 48 million subscribers, even with service price increases.

Disney strategically bundled Hulu with its broader streaming portfolio, which includes Disney+ and ESPN+, offering a discounted package. Hulu has stood out within Disney’s media empire, demonstrating success in its endeavor to make streaming profitable and capturing a substantial subscriber base with its extensive entertainment library.

As Iger emphasized in a May earnings call, the company conducted in-depth analysis over three months, highlighting the strength of merging Disney+’s content with Hulu’s general entertainment offerings.

Disney is scheduled to announce its quarterly earnings results on November 8.