Movies

Disney finally owns all of Hulu, ending long tug-of-war with Comcast

BBG News

Disney Company has decided to shell out an extra $438.7 million to complete its acquisition of Hulu‘s streaming service from Comcast Corporation.

In December 2023, Disney first shelled out approximately $8.6 billion to Comcast for a one-third share in their joint streaming platform, which was owned by NBCUniversal.

On Monday, it was confirmed that the final installment will bring the grand total, which the media conglomerate from Burbank owes to Comcast for their shares, to a sum of $9.2 billion.

After a lengthy evaluation period, the recent deal between the two corporations was finalized regarding Hulu’s estimated worth. The service that houses popular series like “The Handmaid’s Tale” and “Only Murders in the Building” seems to be valued around $27.5 billion.

The resolution also represents a major step in Disney’s years-long pivot to streaming.

Bob Iger, Disney’s CEO, expressed satisfaction as they’ve now reached a resolution,” he stated, recognizing the fruitful collaboration between Disney and the Philadelphia-based company.

By finalizing the purchase of Hulu, a path is opened for a closer and smoother combination of Hulu’s broad entertainment content with Disney+. In the near future, ESPN’s direct-to-consumer service will also be included in this blend, creating an unmatched value offer for consumers,” Iger stated.

Hollywood Inc.

Disney anticipates spending approximately $8.61 billion to acquire its share in the renowned streaming platform that boasts hit shows like “The Bear” and “Only Murders in the Building.” However, Comcast has expressed a desire for significantly higher compensation for their 33% ownership of Hulu.

Since the unsuccessful hostile takeover attempt by Comcast on Disney back in 2004, the relationship between these two corporations has remained strained.

Seven years ago, tensions resurfaced as Comcast entered the bidding war over Rupert Murdoch’s entertainment properties that Disney was involved in, significantly increasing the cost for Disney.

Back in April 2019, I was thrilled to see Disney taking a significant lead in the streaming game with their $71.3-billion acquisition of a major portion of Murdoch’s media empire. This deal included gaining a substantial stake in Hulu, which has only added to my excitement as a cinephile.

In the spring, Disney and Comcast hammered out an agreement detailing how they’d manage the service while it was co-owned by both companies, as well as a roadmap for disbanding their partnership. At that time, they decided Hulu would be appraised at no lower than $27.5 billion, giving Comcast a stake worth at least $8.6 billion.

Two years back, Comcast initiated the process of divesting from their assets, with CEO Brian Roberts hinting at this intention. Subsequently, both parties embarked on an evaluation period aimed at determining Hulu’s worth.

Disney noted the $438.7 million payment was substantially less than what Comcast had wanted.

The deal is expected to close by July 24.

Hulu initially started as a collaboration between NBCUniversal and Fox back in 2008. The next year, Disney came on board as a shareholder.

Comcast declared on Monday that Hulu, which was instrumental in streaming and produced approximately $10 billion for us, served as a valuable platform for NBCUniversal’s premium content. We extend our best wishes to Disney regarding their future endeavors with Hulu, and appreciate the collaborative approach taken by both teams during our partnership,” Comcast stated.

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2025-06-10 01:31

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