Disney Takes Full Control Of Hulu

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!

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