The company expects to spend approximately $8.61 billion by December 1 for Comcast/NBCU’s 33% stake in the streamer, minus the anticipated outstanding capital call contributions payable by NBCU to Disney, with final amounts to depend on assessment of fair equity value.
Disney will soon own 100% of Hulu. The Walt Disney Company has announced that it will acquire the 33% stake in Hulu currently held by Comcast Corp.’s NBCUniversal, following Comcast’s November 1 exercise of its right under the put/call arrangement between the two companies.
“The acquisition of Comcast’s stake in Hulu at fair market value will further Disney’s streaming objectives,” Disney said in a statement.
Under the terms of the put/call arrangement, Disney expects to pay NBCU approximately $8.61 billion by December 1, representing NBCU’s one-third stake of the $27.5 billion guaranteed floor value for Hulu that was set when the companies entered into their agreement in 2019, minus the anticipated outstanding capital call contributions payable by NBCU to Disney of approximately $567 million.
Under the appraisal process agreed to by Disney and Comcast, Hulu’s equity fair value will be assessed as of September 30, 2023, and if the value is ultimately determined to be greater than the guaranteed floor value, Disney will pay NBCU its percentage of the difference between the equity fair value and the guaranteed floor value.
While the timing of the appraisal process is uncertain, Disney anticipates it will be completed during the 2024 calendar year.
Source: The Walt Disney Company
Journalist, antique shop owner, aspiring gemologist—L'Wren brings a diverse perspective to animation, where every frame reflects her varied passions.
