Walt Disney Co. is set to pay an additional $438.7 million to Comcast Corp. as part of its ongoing acquisition of Hulu, according to a regulatory filing released on Monday. This agreement, reported by Bloomberg, is expected to finalize before July 24, 2025, but will impact Disney’s net income during the fiscal third quarter.
In 2019, Disney initiated the purchase of Comcast’s one-third stake in Hulu at a valuation that pegged the entire streaming service at approximately $27.5 billion, with the deal set to commence in 2024. However, as negotiations progressed, Comcast argued that Hulu’s worth was significantly higher, prompting a dispute resolution process involving three investment bankers to assess the company’s value. This valuation process concluded on June 9, 2023.
Bloomberg noted that Disney has already disbursed $8.6 billion to Comcast for its stake. Additionally, Comcast secured an advantage by not having to fulfill a $557 million financial obligation for Hulu, as stipulated in their partnership agreement. The appraisal from Comcast’s side suggested that Hulu was valued at up to $5 billion more than initially expected.
Reacting to the resolution, Disney CEO Bob Iger expressed his satisfaction, stating, “We are pleased this is finally resolved. We have had a productive partnership with NBC Universal, 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 unrivalled value proposition for consumers.”
Comcast echoed Iger’s sentiments in its own statement, affirming their goodwill towards Disney: “We wish Disney well with Hulu and appreciate the cooperative way our teams managed the partnership.”
Founded as one of the original streaming services, Hulu transformed from a collaborative platform for broadcasters delivering next-day online content to a hub of original programming, including popular series like “The Bear.” Previously co-owned by Disney, 21st Century Fox Inc., Comcast, and AT&T, Hulu was also a pioneer in leveraging advertising strategies that have now become industry standards among major streaming services. As of now, Hulu boasts over 54 million subscribers, reflecting its significant impact on the streaming landscape.
As this deal unfolds, it marks a critical step for Disney as it seeks to integrate Hulu’s diverse content more effectively with its expanding portfolio, positioning Disney to better compete in the crowded streaming market.
Original Source: https://www.livemint.com/news/disney-to-pay-comcast-additional-438-7-million-to-finalise-hulu-acquisition-before-july-2025-11749539729547.html
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Publish Date: 2025-06-10 13:31:00
