Disney assumed full operational control of Hulu in 2019 as part of a put/call agreement with Comcast.
The Walt Disney Company has revealed its plans to acquire Comcast Corp.’s NBC Universal (NBCU) 33% stake in Hulu, LLC, following Comcast’s exercise of its right under the put/call arrangement between the two conglomerates. This acquisition, set at fair market value, aligns with Disney’s strategic goals in the streaming sector.
As per the put/call arrangement terms, Disney anticipates paying NBCU approximately $8.61bn by December 1, which represents NBCU’s share of the $27.5bn guaranteed floor value for Hulu, established when the agreement was formed in 2019. This sum will be reduced by the expected outstanding capital call contributions payable by NBCU to Disney. Notably, the equity fair value of Hulu will be assessed as of September 30, 2023, through an agreed-upon appraisal process between Disney and Comcast. In the event that the assessed value exceeds the guaranteed floor value, Disney will compensate NBCU for its proportionate share of the difference. Although the timing of the appraisal process remains uncertain, completion is anticipated during the 2024 calendar year.
