The Walt Disney Company is set to take full ownership of Hulu in a landmark deal worth approximately $8.61 billion. This move comes as part of a put/call arrangement with NBCUniversal (NBCU), which currently owns a stake in the streaming platform.
Disney has stated that it expects to pay NBCU its percentage of the $27.5 billion guaranteed floor value for Hulu that was established when the companies entered into their agreement in 2019. This payment will be made minus the anticipated outstanding capital call contributions payable by NBCU to Disney.
According to the appraisal process agreed upon by Disney and Comcast, Hulu’s equity fair value will be assessed as of September 30, 2023. If the value is 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. Although the timing of the appraisal process is uncertain, it is anticipated to be completed during the 2024 calendar year1.
This acquisition further solidifies Disney's position as a leader in the global entertainment industry. With the addition of Hulu, Disney expands its reach significantly, adding another platform to its already diverse portfolio.