Comcast, Disney Accelerate Hulu Ownership Talks

(RTTNews) - Comcast CEO Brian Roberts has announced that discussions regarding Hulu's ownership are set to begin on September 30, several months ahead of the original January 2024 deadline.

Under the 2019 agreement, Comcast can compel Disney to buy its remaining 33% stake, or Disney can require Comcast to sell, with a minimum total equity value of $27.5 billion.

Roberts expressed optimism about resolving the matter, highlighting that Hulu's value has surged since Disney took control, making it a far more valuable asset today. Hulu now ranks as the second-largest streaming service, trailing only Netflix.

This deal marks a historic moment, representing the first sale of a streaming service of this magnitude. Each company will have its appraiser, potentially bringing in a third in case of valuation disparities.

Hulu's valuation extends beyond the app itself, including its content library, largely provided by Disney, and its bundling with Disney+ and ESPN+, reducing subscriber churn. Synergies could add billions to the buyer's value, potentially reaching $30 billion when factoring in churn benefits.

While Disney has not yet responded to these developments, discussions about Hulu's value have been ongoing between the two companies. The future of Hulu has long been a topic of speculation, with Roberts previously suggesting that Comcast would likely sell its stake to Disney in 2024, potentially exceeding the initial valuation.

As the deadline nears, NBCUniversal, owned by Comcast, has begun moving content from Hulu to its streaming platform, Peacock. Hulu, known for adult-oriented content like "Only Murders in the Building," is a complementary asset to Disney's flagship streaming service, Disney+.

Disney's strategy involves integrating Hulu content into Disney+, aiming to create a unified streaming experience in the U.S. This move aligns with their focus on the ad-supported Disney+ option, attracting more subscribers and advertisers. The one-app platform is expected to launch by year-end, further reshaping the streaming landscape.