Disney Set to Acquire Hulu

Disney is set to continue its track as a big player in the streaming industry as the media giant is now buying Comcast’s stake in Hulu, worth up to USD8.61 billion, following through on their deal made in 2019.

Upon buying Comcast’s 33 percent stake in Hulu, Disney will then gain full ownership of the streaming service.

However, Disney may end up paying more than what it expects as both companies reached an agreement for an appraisal process to do an evaluation of the equity fair value of Hulu as of September 30th. Should the streaming service have more value than what Disney expects, they are expected to pay the added value as well.

According to Disney, it expects that the appraisal process will be completed in 2024, although it added that the timeline for the process is “uncertain.”

During the initial negotiations for Disney’s acquisition of Hulu in 2019, the streaming service was then valued at USD27.5 billion, with Comcast chief executive Brian Roberts saying during an investors conference that the platform is more valuable now.

Disney is expected to reveal more plans for Hulu in their upcoming company earnings call soon. (GFB)