NATIONAL NEWS

Disney to acquire remaining stake in Hulu for expected $8.6 billion

Nov 2, 2023, 10:04 AM

The HULU logo is seen inside the convention center during San Diego Comic-Con International in San ...

The HULU logo is seen inside the convention center during San Diego Comic-Con International in San Diego, California, on July 23. (Mandatory Credit: Chris Delmas/AFP, Getty Images)

(Mandatory Credit: Chris Delmas/AFP, Getty Images)

(CNN) — Disney will acquire Comcast’s one-third stake in Hulu for an expected $8.61 billion, the company said Wednesday, in a deal that will put the streaming service entirely inside the Magic Kingdom when the transaction closes later this year.

“The acquisition of Comcast’s stake in Hulu at fair market value will further Disney’s streaming objectives,” the company said in a short statement.

Wednesday’s deal brings to an end long-running speculation about the fate of Hulu, but still requires an appraisal process that is expected to be completed in 2024 to further assess the streaming service’s fair value before a final sale price tag is agreed upon.

“We look forward to the appraisal process and the determination of Hulu’s fair market value which we expect will reflect the extraordinary value of the business,” Comcast said in a statement.

Disney’s bid to acquire the remaining shares in the platform began in 2019 under an agreement between the two companies that gave Hulu a value of at least $27.5 billion.

Disney chief executive Bob Iger publicly signaled in recent months his intention to acquire the remaining shares of the streaming service, saying in March that Disney “was studying the business very, very carefully.”

The decision comes as the entertainment giant makes dramatic shifts in its media business, with Iger openly floating the possibility it could sell off its ABC division and is on the hunt for a “strategic partner” for ESPN as it aims to quickly transition from the linear television business to streaming.

Hulu, the subscription-based streaming platform, was founded in 2007 with joint ownership by a group of media companies — including 21st Century Fox, Comcast, and CNN’s former parent company Time Warner. In recent years, those companies have begun to focus on their respective streaming platforms.

In 2020, NBCU launched its own subscription-based streaming platform, Peacock, and Comcast began shifting programming from Hulu onto the new platform, including Bravo and NBC shows.

But Hulu has continued to show growth with hit original movies and shows including “The Handmaid’s Tale,” “The Bear,” and “Reservation Dogs,” amassing more than 48 million subscribers even as the price of the service has continued to rise.

Disney has also bundled the Hulu service as part of its larger portfolio of streaming services, including Disney+ and ESPN+, offering it at a discounted rate as part of the larger package. But Hulu has been a bright spot in Disney’s media empire as it works to quickly make streaming profitable and capture a large subscriber base lured by its vast entertainment library.

“I’ve now had another three months to really study this carefully and figure out what is the best path for us to grow this business,” Iger said on a May earnings call. “It’s clear that a combination of the content that is on Disney+ with general entertainment is a very positive, is a very strong combination from a subscriber perspective.”

Disney is set to report its quarterly earnings results on Nov. 8.


The-CNN-Wire™ & © 2023 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

KSL 5 TV Live

National News

Traffic moves on I-15 in Salt Lake City on Thursday, May 18, 2023. (Spenser Heaps, Deseret News)...

Bryan Mena, CNN

Americans are expected to splurge on travel this summer — again

Millions of Americans have taken to the skies, hit the road, fired up the barbecue grill and jumped into the pool this weekend to celebrate the start of summer 2024. Analysts are expecting the Memorial Day weekend to usher in yet another summer of strong consumer spending on travel and other leisure activities.

2 hours ago

This image released by Sony Pictures shows Garfield, voiced by Chris Pratt, in a scene from the ani...

Lindsey Bahr, The Associated Press

‘Furiosa,’ ‘Garfield’ lead slowest Memorial Day box office in decades

Movie theaters are looking more and more like a wasteland this summer. Neither “ Furiosa: A Mad Max Saga ” nor “ The Garfield Movie ” could save Memorial Day weekend, which is cruising towards a two-decade low.

3 hours ago

Sam Lemon, right, speaks during a news conference with Susie Williams Carter, center, and lawyer Mi...

Alisha Ebrahimji, CNN

A Black teen wrongfully executed for murdering a White woman in 1931. Now, his family is suing to defend his name

More than 90 years after Alexander McClay Williams was wrongfully executed, his family is suing the Delaware County, Pennsylvania, for damages, alleging he was sentenced to the electric chair for a crime he did not commit.

4 hours ago

Several cars are seen heavily damaged outside the remains of a Shell gas station after a suspected ...

Maria Kostenko and Radina Gigova, CNN

At least 14 dead in Texas, Oklahoma and Arkansas after severe weather roars across region

Powerful storms have killed at least 14 people and left a wide trail of destruction across Texas, Oklahoma and Arkansas. The weather obliterated homes and destroyed a truck stop where drivers took shelter during the latest deadly weather to strike the central U.S.

5 hours ago

Passengers check in at San Francisco International Airport on May 24, 2024 in San Francisco, Califo...

Rebekah Riess, CNN

TSA sets new record Friday for most travelers screened in a single day

The Transportation Security Administration (TSA) announced that it set a new record for most travelers screened in a single day on Friday, according to a post from the agency on X, formerly known as Twitter.

22 hours ago

President Joe Biden at the US Military Academy commencement ceremony in West Point, New York, on Ma...

Aileen Graef, Athena Jones and Shania Shelton, CNN

Biden touts expansion of NATO and actions in the Middle East during West Point commencement

President Joe Biden touted the expansion of NATO, his actions in the Middle East and progress in lowering military sexual assaults in a commencement address to the West Point graduating class Saturday.

1 day ago

Sponsored Articles

Electrician repairing ceiling fan with lamps indoors...

Lighting Design

Stay cool this summer with ceiling fans

When used correctly, ceiling fans help circulate cool and warm air. They can also help you save on utilities.

Side view at diverse group of children sitting in row at school classroom and using laptops...

PC Laptops

5 Internet Safety Tips for Kids

Read these tips about internet safety for kids so that your children can use this tool for learning and discovery in positive ways.

Women hold card for scanning key card to access Photocopier Security system concept...

Les Olson

Why Printer Security Should Be Top of Mind for Your Business

Connected printers have vulnerable endpoints that are an easy target for cyber thieves. Protect your business with these tips.

Modern chandelier hanging from a white slanted ceiling with windows in the backgruond...

Lighting Design

Light Up Your Home With These Top Lighting Trends for 2024

Check out the latest lighting design trends for 2024 and tips on how you can incorporate them into your home.

Technician woman fixing hardware of desktop computer. Close up....

PC Laptops

Tips for Hassle-Free Computer Repairs

Experiencing a glitch in your computer can be frustrating, but with these tips you can have your computer repaired without the stress.

Close up of finger on keyboard button with number 11 logo...

PC Laptops

7 Reasons Why You Should Upgrade Your Laptop to Windows 11

Explore the benefits of upgrading to Windows 11 for a smoother, more secure, and feature-packed computing experience.

Disney to acquire remaining stake in Hulu for expected $8.6 billion