The Walt Disney Company has taken full ownership of Hulu, reaching a deal with Comcast Corporation to acquire NBCUniversal’s 33% stake in the streaming service for $439 million. Reaching this figure ends a dispute that lasted for a year-and-a-half surrounding the amount, which included Disney averring that it did not owe NBCUniversal any more remittance aside from the $8.6 billion floor price that it had already issued for the stake. Comcast had contended that Disney owned another $5 billion, and a third-party appraiser was implemented to assist in resolving the dispute by finalizing the equity fair value for Hulu.
“We are pleased this is finally resolved,” Bob Iger, chief executive officer of The Walt Disney Company, said in a statement. “We have had a productive partnership with NBCUniversal, and we wish them the best of luck. 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.”
In a recent regulatory filing, Disney divulged that this additional amount will be reported in net income attributable to noncontrolling interests. The amount is also not expected to be included in Disney’s report of adjusted earnings per share wherefore it will not impact previous guidance for the fiscal year in this regard. The acquisition of the NBCUniversal stake in Hulu will close on or before July 24 of this year, coinciding with the fiscal fourth quarter for The Walt Disney Company.
“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,” a Comcast spokesperson said to The Hollywood Reporter. “We wish Disney well with Hulu and appreciate the cooperative way our teams managed the partnership.”
Hulu generated a profit last quarter with earnings of $54.7 million registered in the company’s fiscal second quarter, representing a 2% proliferation compared to the previous year. Users will also be able to bundle Hulu with Disney+ and the Unlimited plan of the new ESPN direct-to-consumer platform at $29.99 per month throughout the first 12 months. The enhanced ESPN app will include new fan experiences and features tailored for users, who will be able to access all ESPN linear networks through the Unlimited option.
Barrett Media produces daily content on the music, news, and sports media industries. To stay updated, sign up for our newsletters and get the latest information delivered straight to your inbox.
