Disney will settle a protracted appraisal procedure by paying Comcast $438.7 million to fully acquire Hulu

After years of evaluation, Disney has decided to pay Comcast $438.7 million for its ownership of the streaming service Hulu.

Disney declared in 2023 that it will purchase Comcast’s 33 percent interest in Hulu. Hulu’s guaranteed minimum value of $27.5 billion was reflected in the $8.6 billion Disney paid at the time. In 2019, the two businesses had reached an agreement on that floor.

While the appraiser for Comcast’s NBCUniversal «arrived at a valuation substantially in excess of the guaranteed floor value,» Disney claimed that its assessor had arrived at a price below the required floor. According to an SEC filing, a third appraiser completed the procedure on Monday.

It is anticipated that the last deal would close on July 24 at the latest. Disney’s fiscal third quarter income statement will show a decrease in «net income attributable to Disney» as a result of the payment being recorded in its «net income attributable to noncontrolling interests.» Disney’s previous guidance for fiscal 2025 adjusted earnings is not anticipated to be impacted.

«A deeper and more seamless integration» of Hulu and Disney+ content, as well as the forthcoming ESPN direct-to-consumer streaming app, named ESPN, are made possible by the finalized transaction, Iger continued.

Disney has already started combining the two current services, which are also available as a package with ESPN+, the company’s sports streaming service.

Disney’s latest earnings report states that as of March 29, Hulu has over 50 million members. Disney+ accounts for the majority of the company’s 180.7 million streaming members overall. Peacock has 41 million subscribers, according to a Comcast report from April.