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The Walt Disney Company moves up the timeline for a huge entertainment acquisition. Take a look at what’s happening and let us know if you think this is a good idea financially or not.
Disney Purchases Shares
Launched in 2007, Hulu is now a leading premium online television content from over 400 content partners, and more than 30 million monthly viewers. Along with original programming, you can find shows owned by Disney, 20th Century, ABC, FX, and more.
Following the start of its service, Hulu signed deals with several content providers. In 2009, The Walt Disney Company announced that it would join the venture, purchasing a 27 percent stake in Hulu.
In 2009, The Walt Disney Company purchased 27 percent stake in Hulu.
Current Agreement
Now, the Walt Disney Company currently owns 67% of Hulu while Comcast owns the other 33%. In 2019, Disney acquired 21st Century Fox which gave them the majority shares.
Recently, we shared HERE talks between Disney and Comcast were in the works for an agreement.
NBCUniversal parent Comcast agreed in 2019 to sell its stake to Disney, which controls the service. Under terms of that agreement, either Comcast or Disney could initiate the transaction as soon as November 1.
Agreement Exercised
The Walt Disney Company (NYSE: DIS) announced today that it will acquire the 33% stake in Hulu owned by Comcast. Disney will follow Comcast’s November 1 exercise of its right under the agreement between the two companies.
Disney expects it will pay approximately $8.61 billion to own all of Hulu. Hulu will receive a valuation which may altar the price they pay. This appraisal process should be completed sometime during 2024.
Disney expects to pay approximately $8.61 billion to own Hulu outright. This amount may change based on Hulu’s valuation.
What do you think of Disney purchasing Hulu outright? Is this a solid move financially or could this money be better used somewhere else? Please let us know in the comments and share this post with a friend.
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