The Walt Disney Company is going to acquire the 33% stake in Hulu held by NBC Universal (whose parent is Comcast). The company expects to pay NBCU approximately $8.61 billion, based on certain conditions, and the deal should be completed this year.
The Walt Disney Company took full operational control of Hulu in 2019 and this deal will give it full ownership of the U.S. streaming giant. Disney says the acquisition will further its streaming objectives. Comcast’s NBCU has its own U.S. and international streamer, Peacock.
The estimated $8.61 billion price represents NBCU’s percentage of the $27.5 billion guaranteed floor value for Hulu that was set when the companies entered into their agreement in 2019 minus the anticipated outstanding capital call contributions payable by NBCU to Disney.
The deal follows Comcast’s November 1 exercise of its right under the put/call arrangement between the two companies. Under the appraisal process agreed to by Disney and Comcast, Hulu’s equity fair value will be assessed as of September 30, 2023, and if the value is ultimately determined to be greater than the guaranteed floor value, Disney will pay NBCU its percentage of the difference between the equity fair value and the guaranteed floor value.
Photo shows the Hulu home page.