Disney will have full ownership of Hulu soon

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Gaming & Culture

On Wednesday, Disney announced it would buy Comcast’s stake in Hulu to reach full ownership finally. The deal is expected to cost about $8.61 billion for the 33% stake in Hulu that Comcast still holds.

It is expected that the deal could be worth more than that, owing to a clause in the appraisal process that both companies agreed to. It states that the appraisal will evaluate Hulu’s equity’s fair value as of September 30th.

If Comcast’s stake is worth more than the ‘guaranteed floor value,’ Disney must make up the difference and pay Comcast in full.

Completion of a 2019 deal

Disney is not sure when the appraisal will be completed but is confident that it will be sometime next year. While it may seem out of the blue for those not following the deal closely, this outcome was set in stone as far back as 2019.

Disney made a deal with Comcast to buy its one-third stake in Hulu and initially set a deal completion date of 2024. However, they both agreed to move the date to September 30th while simultaneously deciding on a minimum valuation of $27.5 billion for Hulu.

According to Comcast CEO Brian Roberts at an investors conference in September, the figure was a “hypothetical we picked five years ago,” adding that the company has risen significantly since then.

We’ll find out more soon

Last quarter, Hulu reported a lackluster performance that saw subscriber numbers barely shift. That led to Disney announcing a price hike across all of its streaming services and hinting that it could start cracking down on password sharing.

In October, Hulu’s ad-free service saw a price increase from $14.99 to $17.99 per month, while Hulu with Live TV will rise from $68.99 to $75.99 per month.

Disney is having its company’s earnings call next week, where we expect to hear more about what the Mouse’s Kingdom plans to do.

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