Disney pays $439 million to finalize Hulu acquisition
- Disney will assume full control of Hulu after acquiring Comcast's stake.
- The acquisition concluded a lengthy appraisal process over several years.
- This acquisition is part of Disney's strategy to integrate Hulu's content with Disney+ and ESPN products.
In November 2023, The Walt Disney Company announced plans to acquire Comcast's 33% stake in Hulu for a minimum payment of $8.6 billion, which was based on Hulu's guaranteed floor value of $27.5 billion. Following multiple appraisals over the course of several years, a final valuation concluded that Disney would pay approximately $438.7 million for the stake. This decision closed a long appraisal process and allowed Disney to take full control of Hulu, a streaming service that has evolved significantly since its inception in 2007. Initially founded as a response to the rise of digital platforms, Hulu quickly gained traction with offerings from major entertainment partners. Disney first joined Hulu's founding group in 2009, providing content from its various networks, including ABC, ESPN, and the Disney Channel. In 2019, Comcast relinquished its authority over Hulu to Disney, who has been managing the streaming service ever since. The agreement marks a significant step in Disney's continued strategy to consolidate its content under one umbrella, allowing for a seamless integration of Hulu's offerings with Disney+ and ESPN's direct-to-consumer product, enriching the overall experience for viewers. Disney CEO Bob Iger expressed satisfaction in the resolution of the stake acquisition and highlighted the benefits it would bring to consumers. The transaction is anticipated to close by July 24, and it is not expected to have an adverse effect on Disney's fiscal 2025 earnings forecast.