Disney acquires remaining Hulu stake
November 2, 2023
By Colin Mann
The Walt Disney Company is to acquire the 33 per cent stake in SVoD service Hulu held by Comcast’s NBC Universal, following Comcast’s November 1st exercise of its right under the put/call arrangement between the two companies. Disney says the acquisition of Comcast’s stake in Hulu at fair market value will further its streaming objectives.
Under the terms of the put/call arrangement, by December 1st, Disney expects it will pay NBCU approximately $8.61 billion (€8.14bn), representing NBCU’s percentage of the $27.5 billion guaranteed floor value for Hulu that was set when the companies entered into their agreement in 2019 minus the anticipated outstanding capital call contributions payable by NBCU to Disney.
Under the appraisal process agreed to by Disney and Comcast, Hulu’s equity fair value will be assessed as of September 30th, 2023, and if the value is ultimately determined to be greater than the guaranteed floor value, Disney will pay NBCU its percentage of the difference between the equity fair value and the guaranteed floor value. While the timing of the appraisal process is uncertain, Disney anticipates it should be completed during the 2024 calendar year.
Disney took full operational control of Hulu in May 2019 as part of the put/call agreement.