Disney to Acquire Full Control of Hulu with 33% Stake Purchase from Comcast
Disney's move to acquire the remaining 33% stake in Hulu from Comcast is set to solidify its position as the sole owner of the popular US streaming service, further advancing its streaming goals. By: Wee Yan Ling
Disney has announced that it will be acquiring the remaining 33% stake in Hulu from Comcast. This move will allow Disney to be the sole owner of the US streaming service. The acquisition is in line with Disney’s efforts to bolster its presence in the competitive streaming market.
However, the price tag is under debate despite the intention to purchase the remaining stake being anticipated in 2019. Disney has released that the company expects to pay Comcast $8.61 billion for the 33% stake in Hulu by December.
The figure is in correlation to Comcast's share of the $27.5 billion guaranteed floor value when the two companies had a “put/call” agreement back in 2019. The amount is subjected to changes for anticipated outstanding contributions payable by Comcast to Disney.
In order to compensate for the valuation dispute, an independent appraisal process to access Hulu’s equity fair value is undergoing. Disney has outlined that if the total asset value is appraised to be more than the $27.5 billion floor value, they will pay Comcast the difference in accordance with their agreement.
The precise timeline for the appraisal process is not confirmed however it is to be concluded by the end of the following year.
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