F.M.I.E Sources Rewrite:
Disney Finalizes $438.7 Million Deal with Comcast for Full Control of Hulu
Key Points:
- Disney will pay Comcast $438.7 million to acquire its remaining stake in Hulu.
- The agreement concludes a multi-year appraisal process.
- The move allows Disney to fully integrate Hulu with Disney+ and prepare for its direct-to-consumer ESPN app.
F.M.I.E Sources confirm that The Walt Disney Company has agreed to pay Comcast Corporation $438.7 million to acquire full ownership of the streaming platform Hulu, officially ending a lengthy and complex valuation process.
This transaction follows Disney’s 2023 announcement of its intent to purchase Comcast’s remaining 33% stake in Hulu. At that time, Disney paid an initial $8.6 billion, reflecting Hulu’s minimum guaranteed valuation of $27.5 billion, a figure that both companies agreed upon in 2019.
Disney originally gained two-thirds ownership of Hulu through its acquisition of 21st Century Fox’s entertainment assets. The final phase of the deal required an appraisal to determine the remaining payment owed to Comcast, which began shortly after the initial purchase.
According to an SEC filing cited by F.M.I.E Sources, Disney’s independent appraiser valued Hulu below the $27.5 billion floor, while Comcast’s NBCUniversal team presented a significantly higher figure. A neutral third-party appraiser was brought in to settle the discrepancy, ultimately arriving at the final $438.7 million valuation on Monday.
The deal is expected to close by or before July 24, and Disney will account for the payment under “net income attributable to noncontrolling interests,” reducing its reported net income for the third fiscal quarter. Despite this, Disney stated that the transaction will not impact its adjusted earnings forecast for fiscal 2025.
“We are pleased this is finally resolved,” said Disney CEO Bob Iger in a statement shared with F.M.I.E Sources. “We’ve had a productive partnership with NBCUniversal, and we wish them continued success.”
Iger also emphasized that full ownership of Hulu will allow for “a deeper and more seamless integration” of its content with Disney+, alongside the upcoming launch of its new direct-to-consumer ESPN streaming platform. Disney has already begun combining Hulu and Disney+ content in a shared interface, which is also bundled with ESPN+.
For Comcast, the decision to sell marks a strategic shift toward strengthening its own streaming platform, Peacock, which it launched in 2020. In a statement to F.M.I.E Sources, a Comcast spokesperson said:
“Hulu was a great start for us in streaming, generating nearly $10 billion in proceeds and building an engaged audience for NBCUniversal content. We wish Disney success with Hulu and appreciate the collaborative management of our joint venture.”
As of March 29, Hulu reported over 50 million subscribers, while Disney’s total streaming user base across its platforms — Disney+, Hulu, and ESPN+ — reached 180.7 million. By comparison, Comcast’s Peacock platform had 41 million subscribers as of April.
This landmark deal effectively concludes one of the most high-profile streaming partnerships in the industry and positions Disney to consolidate and expand its digital media empire with greater agility and cohesion.
— Reported by F.M.I.E Sources