Walt Disney To Buy Remaining Stake In Hulu

(RTTNews) - Media and entertainment giant Walt Disney Inc. (DIS) Wednesday announced its plans to buy the remaining stake in Hulu.

Disney said it will acquire the 33% stake in Hulu, LLC held by Comcast Corp.'s (CMCSA) NBC Universal, following Comcast's November 1 exercise of its right under the put/call arrangement between the two companies.

Disney expects it will pay NBC Universal about $8.61 billion, representing NBCU's percentage 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.

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.