Disney will be taking full control of Hulu.
In a news release on Wednesday, the Walt Disney Company announced that it will acquire the 33% stake in the streaming service held by cable operator Comcast Corp.
Disney said it will pay Comcast approximately $8.61 billion for the one-third stake owned by Comcast. The cable operator exercised its right under the put/call arrangement between the two companies, Variety reported. Disney owned 66% stake of Hulu.
Disney is set to pay Comcast’s NBCUniversal at least $8.61 billion for its minority stake in Hulu https://t.co/DoJDI1TdyP https://t.co/DoJDI1TdyP
— The Wall Street Journal (@WSJ) November 1, 2023
The transaction had been expected.
“The acquisition of Comcast’s stake in Hulu at fair market value will further Disney’s streaming objectives,” Disney said in a statement.
Disney, which will pay the $8.61 billion by Dec. 1, could pay more money for Hulu based on its equity value as of Sept. 30, CNBC reported. The company said the appraisal process should end sometime during 2024.
“While the timing of the appraisal process is uncertain, we anticipate it should be completed during the 2024 calendar year,” Disney said in a statement.
A securities filing confirmed that NBCUniversal triggered Disney’s purchase earlier Wednesday, according to the news outlet.
Hulu had 48 million subscribers as of July, according to The Wall Street Journal.
The streaming service also streams broadcast shows from ABC and Fox and has a large catalog of movie classics, along with an online television service, the newspaper reported.
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