Comcast and Disney are in arbitration over Hulu’s valuation, as Comcast prepares to compel Disney to buy out its 33 per cent stake in the joint venture.
It is reported Comcast has stopped paying-in in the money-losing SV0D service (which could contractually reduce its stake) and is trying to get Disney to buy its stake, reports The Information.
Comcast cannot force Disney to buy for a further three years, but it is thought Comcast was disillusioned by Disney’s decision last year not to expand Hulu’s international presence. Comcast is said to believe Disney prioritises its branded expansion and wants to limit Hulu’s value ahead of a mandated buy out.
Hulu was launched in 2007 by Disney, Fox and NBCU. Disney acquired Fox’s 30 per cent share as part of its $71.3 billion purchase of Fox. Comcast entered into an agreement with Disney, stipulating that it could compel Disney to buy out its remaining share in 2024 at a minimum Hulu valuation of $27.5 billion.