May 14, 2019
As expected, Disney is acquiring Comcast’s stake in Hulu and Hulu with Live TV, a transaction that becomes effective in five years. As part of the deal, Disney assumes full voting control of Hulu immediately.
Comcast has the option to sell its 33% stake in Hulu for $27.5 billion or what the SVOD platform is appraised at in 2024, which ever is greater in value.
On last week’s fiscal call, Disney CEO Bob Iger indicated the media giant was in discussions with Comcast about acquiring the cabler’s Hulu stake.
Disney previously acquired Fox’s Hulu stake after purchasing 20th Century Fox Film Corp. Hulu separately acquired WarnerMedia’s 10% stake.
Regardless, Disney agreed Comcast’s ownership interest in Hulu would never be less than 21% over the next five years, and that Comcast is guaranteed to receive at least $5.8 billion under the agreement.
Comcast also agreed to extend the Hulu license of NBC Universal content and the Hulu Live carriage agreement for NBC channels until late 2024 and to distribute Hulu on its Xfinity X1 platform.
NBC Universal can terminate most of its content license agreements with Hulu in three years’ time, and in one year’s time NBC will have the right to exhibit on its own OTT service certain content that it currently licenses exclusively to Hulu in return for reducing the license fee payable by Hulu.