Disney-Comcast Deal Yields $8.6 Billion for Hulu Acquisition

0
51

[ad_1]

The process of buying Hulu has started for Disney. As the company’s first check to Comcast to buy out, their 33% stake in the streaming service has cleared. Disney wrote a $8.6 billion check to Comcast. However, Comcast is hoping for more.

Disney had already said it would acquire the rest of the Hulu stake that it doesn’t own from NBCUniversal (which Comcast owns). And a deal between the two companies established a floor of $8.61 billion. So, any additional payout will depend on the evaluation that is currently underway with both companies and their respective investment dates.

This process was initially set to take place in January 2024, but both companies agreed to move up the timeline, and the said check was due on December 1.

Comcast President Mike Cavanagh was talking about the Hulu deal at a UBS Media conference in NYC this week. Cavanagh also talked about Peacock and its 30 million paying subscribers now. It’s still unclear if that includes those who get it for free from Comcast, Spectrum, and other methods. That’s two million more than Peacock had in October.

Why does Disney want full control of Hulu?

In November, Disney said that “the acquisition of Comcast’s stake in Hulu at fair market value will further Disney’s streaming objectives.” The company plans to launch a “one-app experience” combining Disney+ and Hulu by the end of 2023. That new app is set to launch this month, with the official launch scheduled for 2024.

Disney has stated that the “one-app experience” would be available for those who subscribe to the Disney+ and Hulu bundle. That bundle costs $9.99 per month or $19.99 per month without ads. Disney has decided to still offer the platforms separately after the launch.

With the acquisition of Hulu, Disney will also be able to have complete control of the service and push all of its content into a single platform. It’s part of the consolidation we’ve seen recently, which started with WarnerMedia and Discovery merging to form Warner Bros Discovery earlier this year.

[ad_2]

Source link