Disney finally owns all of Hulu, ending long tug-of-war with Comcast

Walt Disney Co. has agreed to pay Comcast Corp. an additional $438.7 million to finalize the Mouse House purchase of streaming service Hulu.

Disney in December 2023 initially paid Comcast $8.6 billion for NBCUniversal’s one-third stake in the streaming service.

The final payment, announced Monday, brings the total amount the Burbank entertainment giant will ultimately pay Comcast for its stake to $9.2 billion.

This week’s agreement came after an extended appraisal process as the two companies struggled over Hulu’s actual value. The platform that is home to “The Handmaid’s Tale” and “Only Murders in the Building” appears to be worth about $27.5 billion.

The resolution also represents a major step in Disney’s years-long pivot to streaming.

“We are pleased this is finally resolved,” Disney Chief Executive Bob Iger said in a statement, acknowledging Disney’s productive partnership with the Philadelphia-based company.

“Completing the Hulu acquisition paves the way for a deeper and more seamless integration of Hulu’s general entertainment content with Disney+ and, soon, with ESPN’s direct-to-consumer product, providing an unrivaled value proposition for consumers,” Iger said.

Hollywood Inc.

Disney to pay at least $8.6 billion for Comcast’s Hulu stake

Disney said it expects to pay $8.61 billion for its stake in the popular streaming service, which offers such acclaimed fare as “The Bear” and “Only Murders in the Building.” But Comcast wants considerably more for its 33% of Hulu.

Nov. 1, 2023

The two companies have had tense relations since Comcast launched a failed hostile takeover of Disney in 2004.

Tensions flared again seven years ago after Comcast jumped into Disney’s bidding process for Rupert Murdoch’s entertainment assets, substantially driving up the price for Disney.

Disney prevailed. It gained the majority stake in Hulu as part of its $71-billion acquisition of much of Murdoch’s company in April 2019.

That spring, Disney and Comcast negotiated a pact that outlined the governance of the service while it was jointly owned by the two companies and also provided a blueprint to dissolve their partnership. At the time, they agreed that Hulu would be valued at no less than $27.5 billion, making Comcast’s stake worth at least $8.6 billion.

Comcast’s divestiture process began two years ago when Chief Executive Brian Roberts signaled that his company wanted out. The parties then entered into an appraisal process to find a value for Hulu.

Disney noted the $438.7 million payment was substantially less than what Comcast had wanted.

The deal is expected to close by July 24.

Hulu launched as an NBCUniversal and Fox joint venture in 2008. Disney joined the following year as an equity owner.

“Hulu was a great start for us in streaming that generated nearly $10 billion in proceeds for Comcast and created an important audience for NBCUniversal’s world-class content,” Comcast said in a statement Monday. “We wish Disney well with Hulu and appreciate the cooperative way our teams managed the partnership.”