Disney announced Wednesday that it will acquire Comcast’s one-third investment in Hulu for an estimated $8.61 billion in a deal to place the streaming service wholly within the Magic Kingdom when the transaction closes later this year.
“The acquisition of Comcast’s stake in Hulu at fair market value will further Disney’s streaming objectives,” the company stated briefly.
The agreement reached on Wednesday ends long-running speculation about Hulu’s fate, but it still requires an appraisal procedure, likely to be finished in 2024, to further examine the streaming service’s fair value before a final sale price is agreed upon.
“We look forward to the appraisal process and the determination of Hulu’s fair market value which we expect will reflect the extraordinary value of the business,” the company said in a statement.
Disney’s bid to acquire the platform’s remaining shares began in 2019 under an agreement between the two firms that valued Hulu at at least $27.5 billion.
Disney To Acquire Remaining Stake In Hulu For Expected $8.6 Billion
In recent months, Disney CEO Bob Iger has openly stated his ambition to acquire the remaining shares of the streaming service, stating in March that Disney “was studying the business very, very carefully.”
The decision comes as the entertainment behemoth makes dramatic changes in its media business, with Iger openly speculating on the possibility of selling off its ABC division and looking for a “strategic partner” for ESPN as it seeks to transition quickly from the linear television business to streaming.
Hulu, a subscription-based streaming platform, was created in 2007 with a collection of media firms, including 21st Century Fox, Comcast, and CNN’s previous parent company, Time Warner, as joint owners. These companies have recently begun to focus on their streaming services.
Disney To Acquire Remaining Stake In Hulu For Expected $8.6 Billion
In 2020, NBCUniversal launched Peacock, its subscription-based streaming platform, and Comcast began migrating programs from Hulu to the new platform, including Bravo and NBC shows.
Hulu, on the other hand, has continued to grow with popular original films and episodes such as “The Handmaid’s Tale,” “The Bear,” and “Reservation Dogs,” garnering more than 48 million users even as the service’s price has risen.
Hulu has also been bundled as part of Disney’s bigger portfolio of streaming services, including Disney+ and ESPN+, and is available at a discounted fee as part of the larger package. Hulu, on the other hand, has been a bright spot in Disney’s media empire as it attempts to swiftly make streaming profitable and attract a large subscriber base drawn by its vast entertainment collection.
“I’ve now had another three months to really study this carefully and figure out what is the best path for us to grow this business,” Iger said during an earnings call in May. “It’s clear that a combination of the content that is on Disney+ with general entertainment is a very positive, is a very strong combination from a subscriber perspective.”
On November 8, Disney will release its quarterly earnings reports.
SOURCE – CNN
