Back when Disney purchased 20th Century Fox, it acquired an additional 30% stake in Hulu,  Putting Disney in control of 60% of the streaming service, which resulted in Time Warner selling its remaining 10% to both Comcast and Disney, resulting in the two companies making an agreement that would see Disney take operational control of Hulu.

As part of that contract, a pul/call arrangement was put into place between the two companies, which would either result in Disney forcing Comcast to sell its remaining stake, or Comcast could force Disney to buy out its stake.   The original agreement was for this to take place at the start of 2024, but both companies agreed to pull forward the deal, resulting in Comcast exercising its right under the put/call arrangement between the two companies.

Under the terms of the put/call arrangement, Disney expects it will pay NBCU approximately $8.61 billion, representing NBCU’s percentage of the $27.5 billion guaranteed floor value for Hulu that was set when the companies entered into their agreement in 2019 minus the anticipated outstanding capital call contributions payable by NBCU to Disney.

Under the appraisal process agreed to by Disney and Comcast, Hulu’s equity fair value will be assessed as of September 30, 2023, and if the value is ultimately 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. While the timing of the appraisal process is uncertain, Disney anticipates it should be completed during the 2024 calendar year.

Earlier today, Comcast’s president, Mike Cavanagh, confirmed at a UBS media conference in NYC, that Disney made its first payment for Comcast’s stake in Hulu.

Mike confirmed via Deadline that the “check cleared; it’s in the account. We expect, and certainly hope to get more than that once the process ends. But it’s really just the beginning,”

The first payment was expected to be for $8.5 billion dollars, with a further payment to be made at a later date in 2024, depending on how much Hulu is valued at and what Comcast’s total ownership stake is valued at. 

The purchase of Hulu from Comcast, this will further Disney’s streaming objectives, which include making Hulu content available on Disney+.   Expect more information to be revealed by Disney very soon.

What do you think of Disney buying out Comcast’s stake in Hulu?  Let us know on social media!





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Roger Palmer

Roger has been a Disney fan since he was a kid and this interest has grown over the years. He has visited Disney Parks around the globe and has a vast collection of Disney movies and collectibles. He is the owner of What's On Disney Plus & DisKingdom. Email: Twitter: Facebook:

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