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Disney will take full control of Hulu through the purchase of the remaining 33% of Comcast's stakes on 1st December.
In recent news, Walt Disney would purchase remaining Comcast’s 33% stake in Hulu, a move that gives Disney full control over the prominent streaming service. This will allow Disney to further combine Hulu with its existing streaming platforms, Disney+ and ESPN+.
While Hulu is already part of various bundled services with Disney, the company now aims to merge them into one app. So, now Comcast would leave with a billion dollars to strengthen Peacock their own streaming service.
As part of the deal, Disney will pay Comcast’s NBC Universal a hefty amount of $8.61 billion by December 1. This values Comcast’s stake to $27.5 billion. However, the final price remains a point of conflict between the two companies.
At first, the value was set five years ago, Comcast CEO Brian Roberts has stated that Hulu’s value has significantly increased since then, suggesting that the final price might exceed the previously decided value.
To resolve this issue, both Disney and Comcast have decided to get the help of outside investment banking firms to examine the current value of Hulu. In their September Securities and Exchange Commission filing, it was revealed that Morgan Stanley was hired by Comcast, while Disney gave this task to JPMorgan Chase to determine Hulu’s current valuation.
If the assessments from the two firms differ by more than 10%, a third firm will be brought in to provide its own estimate. The final sale price will then be calculated based on the average of the two closest estimates and decide their valuation of Hulu on 30 September.
If the final price is more than $27.5 billion. In such a case, Disney will be responsible for paying NBC Universal its percentage of the difference. The costing process is expected to be completed by 2024.