Article Summary
Disney is set to acquire full control of Hulu by buying out Comcast's remaining stake, solidifying its position as a dominant player in the streaming industry.
The purchase cost is currently uncertain as the appraisal of Hulu will take place next year. Nonetheless, Disney is projected to make a payment of approximately $8.61 billion USD before December 1.
Disney regards Hulu as a crucial element of its streaming strategy, working alongside Disney+ and EPSN+. There are plans to integrate Hulu's content into the Disney Bundle and expand internationally in the near future.
Disney is on the verge of gaining complete control over Hulu. Instead of selling the platform, Disney is now planning to buy out Comcast's remaining one-third stake for around $8.61 billion USD. This move comes after Disney's acquisition of 20th Century Fox in 2019, which gave them a two-thirds share of Hulu.
The final cost of the purchase is uncertain. The original deal stipulated that any sale would be based on the estimated value of $27.5 billion USD that Hulu was worth in 2019. However, if the equity fair value of the platform on September 30, 2023 is higher, Disney may have to pay more to Comcast. Both parties are currently far apart in their estimation of Hulu's value, with Comcast's CEO stating that it is worth far more than what Disney claims. An appraisal of Hulu's value is expected to be completed next year. The initial payment of $8.61 billion USD is expected to be made by December 1, excluding the additional capital call contributions payable by NBCU to Disney, which are estimated to be around $567 million USD.
That said, both sides have overwhelmingly supported the completion of a deal. Disney and Comcast have made changes to their agreement, allowing for a potential buyout as early as September 30 instead of January 2024. For CEO Bob Iger, the final payout will be worth it, as he has been emphasizing the importance of streaming at the company. Even as he considered selling the platform, Hulu remained a vital component of the Disney bundle. While Disney+ offers access to original programming primarily catered to the entire family, featuring popular IPs such as Marvel and Star Wars, and EPSN+ provides sports coverage, Hulu serves as the company's general entertainment platform with shows tailored for adults and a profitable live sports package.
Hulu Has Become Deeply Integrated in the Disney Bundle
Image via Hulu
Disney has invested significant time integrating Hulu into the Disney Bundle. While not a complete merger, some of Hulu's most popular content will be brought into a unified "one-app" experience with Disney+ later this year. Iger expressed satisfaction with this move, seeing it as a win for both the company, which will benefit from increased ad revenue, and the consumers who already subscribe to the entire bundle. To combat stagnant subscriber growth, the prices for all three streaming platforms have recently been raised, with discounted bundles available for Disney+ and Hulu or for all three services combined. Additionally, Hulu has ambitious plans, with Iger aiming to follow Netflix's lead in cracking down on password-sharing to capitalize on its success.
One positive development is that the completion of the sale could finally lead to international expansion for the streamer. It is believed in the industry that Disney has restricted Hulu to the U.S. in order to maintain its value until the opportunity arose to acquire Comcast's stake. The worldwide distribution of shows like Only Murders in the Building, The Bear, FX's catalog, and other well-received originals would undoubtedly stimulate much-needed growth.
Stay tuned on Our website for more updates on the future of Hulu now that it is fully owned by Disney. Also, don't forget to check out our guide to some of the top films coming to the streamer this month.
Editor's P/S
As a hard fan of Disney, I am thrilled to hear the news that Disney is set to acquire Comcast's stake in Hulu, solidifying its complete control over the popular streaming platform. This move makes perfect sense for Disney, as Hulu is a crucial element of its streaming strategy, working alongside Disney+ and EPSN+. By fully integrating Hulu into its bundle of offerings, Disney will be able to provide consumers with a more comprehensive and compelling streaming experience.
Furthermore, I am excited about the potential for Hulu's international expansion. As mentioned in the article, Disney has restricted Hulu to the U.S. in order to maintain its value until the opportunity arose to acquire Comcast's stake. Now that Disney is set to gain complete control of Hulu, it is likely that the platform will finally be available to audiences outside the U.S. This would be a huge development for Hulu, as it would allow the platform to reach a much larger audience and grow its subscriber base significantly.
