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

Walt Disney Co. has agreed to wage Comcast Corp. an further $438.7 cardinal to finalize the Mouse House acquisition of streaming work Hulu.

Disney successful December 2023 initially paid Comcast $8.6 cardinal for NBCUniversal’s one-third involvement successful the streaming service.

The last payment, announced Monday, brings the full magnitude the Burbank amusement elephantine volition yet wage Comcast for its involvement to $9.2 billion.

This week’s statement came aft an extended appraisal process arsenic the 2 companies struggled implicit Hulu’s existent value. The level that is location to “The Handmaid’s Tale” and “Only Murders successful the Building” appears to beryllium worthy astir $27.5 billion.

The solution besides represents a large measurement successful Disney’s years-long pivot to streaming.

“We are pleased this is yet resolved,” Disney Chief Executive Bob Iger said successful a statement, acknowledging Disney’s productive concern with the Philadelphia-based company.

“Completing the Hulu acquisition paves the mode for a deeper and much seamless integration of Hulu’s wide amusement contented with Disney+ and, soon, with ESPN’s direct-to-consumer product, providing an unrivaled worth proposition for consumers,” Iger said.

The 2 companies person had tense relations since Comcast launched a failed hostile takeover of Disney successful 2004.

Tensions flared again 7 years agone aft Comcast jumped into Disney’s bidding process for Rupert Murdoch’s amusement assets, substantially driving up the terms for Disney.

Disney prevailed. It gained the bulk involvement successful Hulu arsenic portion of its $71-billion acquisition of overmuch of Murdoch’s institution successful April 2019.

That spring, Disney and Comcast negotiated a pact that outlined the governance of the work portion it was jointly owned by the 2 companies and besides provided a blueprint to dissolve their partnership. At the time, they agreed that Hulu would beryllium valued astatine nary little than $27.5 billion, making Comcast’s involvement worthy astatine slightest $8.6 billion.

Comcast’s divestiture process began 2 years agone erstwhile Chief Executive Brian Roberts signaled that his institution wanted out. The parties past entered into an appraisal process to find a worth for Hulu.

Disney noted the $438.7 cardinal outgo was substantially little than what Comcast had wanted.

The woody is expected to adjacent by July 24.

Hulu launched arsenic an NBCUniversal and Fox associated task successful 2008. Disney joined the pursuing twelvemonth arsenic an equity owner.

“Hulu was a large commencement for america successful streaming that generated astir $10 cardinal successful proceeds for Comcast and created an important assemblage for NBCUniversal’s world-class content,” Comcast said successful a connection Monday. “We privation Disney good with Hulu and admit the cooperative mode our teams managed the partnership.”