The Walt Disney Company has announced that it is planning to acquire the 33% stake in Hulu that is currently held by Comcast. This deal, which is set to close in 2024, will effectively grant Disney full ownership of the streamer, which originally launched in 2007 with a focus on broadcasted content but has since expanded to original series and more, including, more recently, a new season of Futurama and No One Will Save You, a movie that features a home invasion by aliens. According to the press release that Disney shared, the company will be paying Comcast’s NBC Universal over $8 billion as part of the arrangement. Disney raised the monthly cost of ad-free Hulu from $14.99 to $17.99 over the summer, a 20% increase.
Hulu Highlights for November 2023
- Black Cake
- FX’s Fargo (S5)
- FX’s A Murder at the End of the World
- The Holiday (2006)
- Elf (2003)
- National Lampoon’s Christmas Vacation (1989)
- Hallmark’s It’s Beginning to Look a Lot Like Christmas (2019)
The acquisition of Comcast’s stake in Hulu at fair market value will further Disney’s streaming objectives. Under the terms of the put/call arrangement, by December 1, Disney expects it will pay NBCU approximately $8.61 billion, 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 30, 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, we anticipate it should be completed during the 2024 calendar year.