The Disney media empire continues to grow to enormous size, as today it was announced that they have now acquired majority control of Hulu.
The announcement came via a press release from Disney, who explained they have “full operational control” of the streaming service at a price of $71.3 billion.
Comcast still owns a 33% stake in the company through its subsidiary with NBC Universal. They have the ability to enforce an option to sell its 33% stake in Hulu to Disney in 2024 at a valuation of at least $27.5 billion.
According to a report from CNBC, “Comcast could either sell its stake in Hulu at a valuation $27.5 billion or whatever Hulu is appraised to be worth in five years. Comcast is guaranteed at least $5.8 billion for its Hulu stake, according to the agreement.”
Hulu went into business in 2007 and has expanded strongly over the years. However, the company has a lot of debt to deal with, so a sale made good business sense.
Last month, AT&T sold its 9.5% stake in Hulu to Disney and NBCU for $1.43 billion, valuing Hulu at $15 billion. Disney and Comcast agreed to allocate that purchase on a pro-rata basis, giving Disney a 66% ownership and Comcast/NBCU a 33% equity stake.
It’s been a busy year for Disney, with their acquisition of Fox as well. It won’t be long before they own everything, so enjoy your freedom from Uncle Walt while you can!