In a significant announcement, Disney has revealed its intention to acquire the remaining 33 percent of Hulu from Comcast, marking a pivotal move in the streaming industry. The deal is expected to involve an estimated payment of approximately $8.61 billion to NBC Universal, although the final amount will be determined following an appraisal process set to conclude next year. This development follows an agreement between the companies dating back to 2019, wherein Comcast had the option to compel Disney to purchase its stake by next year, and conversely, Disney could require Comcast to divest its stake. Opting for expediency, the cable TV and media company decided to hasten negotiations with Disney, bypassing the original timeline of 2024.
Disney highlighted the strategic importance of this acquisition in its announcement, stating, “The acquisition of Comcast’s stake in Hulu at fair market value will further Disney’s streaming objectives.” Earlier this year, Disney unveiled its plans for a “one-app experience” that would seamlessly integrate Disney+ and Hulu content by the close of 2023. While not explicitly confirming its intent to acquire Comcast’s stake at the time, this announcement strongly hinted at Disney’s ambitions for complete control of Hulu. It’s important to note that Hulu’s standalone app will continue to exist, but its content will also become accessible via Disney+ when the new integrated experience is launched.
Bob Iger, Disney’s CEO, emphasized the strategic logic behind this move when he initially introduced the concept of the combined streaming app. He noted that it represents “a logical progression” for the company’s direct-to-consumer offerings, creating enhanced opportunities for advertisers while delivering a more comprehensive and streamlined content offering. This development reflects Disney’s commitment to expanding its presence in the streaming world.
On the other side of the deal, Comcast has been actively promoting its streaming service, Peacock, and making popular shows like “The Voice” available to its subscribers. This acquisition underscores the competitive landscape in the streaming industry, where major players are vying to secure their positions and deliver compelling content to their audiences.
