The Walt Disney Company is set to pay Comcast’s NBCUniversal an additional $438.7 million for its remaining interest in Hulu, resolving a lengthy valuation process and clearing the way for Disney to become the streaming service’s sole owner. The transaction was expected to close on or before July 24, 2025. [Source 5528]
The payment follows an initial $8.61 billion transfer made in December 2023 for NBCUniversal’s one-third stake. Together, the payments bring Disney’s purchase price for that interest to approximately $9 billion. The earlier amount was based on a guaranteed minimum valuation of $27.5 billion for Hulu established under a 2019 agreement between Disney and Comcast. [Source 5529]
Determining whether Disney owed more required a contractual appraisal. Disney’s appraiser valued Hulu below the agreed floor, while NBCUniversal’s appraiser reached a figure substantially above it. Because the assessments diverged, a third appraiser was brought into the process. The resulting calculation, completed on June 9, established the additional $438.7 million payment. [Sources 5528, 5529]
The outcome was substantially below the amount that would have been due under the valuation advanced by Comcast’s selected bank. That assessment could have required Disney to pay another $5 billion, according to Variety. Disney and NBCUniversal had entered confidential arbitration in May 2024 over the appraisal procedure, seeking to resolve their disagreement about how Hulu’s fair value should be determined. [Source 5529]
Disney had operated Hulu since 2019, when Comcast transferred operational authority and became a non-controlling partner. Disney had secured a two-thirds holding after acquiring the entertainment assets of 21st Century Fox and after AT&T sold WarnerMedia’s 10% Hulu stake back to the remaining shareholders. The 2019 arrangement also provided a route for Comcast to sell its remaining interest. [Sources 5528, 5529]
Disney chief executive Bob Iger welcomed the resolution and said full ownership would support closer integration of Hulu’s general-entertainment programming with Disney+. He also pointed to plans to connect that offering with ESPN’s forthcoming direct-to-consumer service. Comcast, meanwhile, said Hulu had generated nearly $10 billion in proceeds for the company and had provided an important outlet for NBCUniversal content. [Source 5529]
Hulu was formed in 2007 as a joint venture backed by major entertainment companies seeking an online platform for television programming. Disney joined the venture in 2009 and later gained majority control through the Fox transaction. [Source 5528]
The final payment was not expected to affect Disney’s adjusted earnings forecast for fiscal 2025. Although the appraisal had been resolved by the event date, the transfer itself remained scheduled for completion by July 24 rather than having already closed on June 10. [Source 5528]
