The Walt Disney Company will buy the 33 per cent of Hulu currently owned by Comcast, completing its acquisition of the streaming service.
Disney has announced its plans to buy the part of the Hulu streaming service it does not already own from TV giant Comcast for an estimated $8.6bn (£7bn).
The offer deadline expires on 1 December 2023, kicking off what are expected to be heated negotiations between the two entertainment conglomerates.
If accepted, the deal would value Hulu at $27.5bn (£22.5bn), despite Comcast chief executive Brian Roberts recently stating he believes the streaming service is a “scarce kingmaker asset” worth $60bn (£49bn).
The agreement would give Disney full control over Hulu’s content, allowing the company to integrate it into its own streaming service Disney+ and “further Disney’s streaming objectives,” the company said in a statement.
Disney gained a controlling interest in Hulu as part of its $71bn (£58bn) acquisition of 21st Century Fox’s film and television assets in 2019. Since then, the company has been increasingly integrating Hulu’s content into its bundled offerings, with a view towards integrating it completely into one app alongside Disney’s other brands and franchises.
In the UK, some Hulu content is already available to watch via the Disney+ app.
Under the terms of a 2019 agreement between Disney and Comcast, both firms had the right to force a sale of Comcast’s stake in Hulu – which Disney has now decided to do.
In the announcement, Disney said it is prepared to pay a higher price for the 33 per cent stake if it is determined to be worth more than estimated.
At the end of the third quarter, Hulu had 48.3 million subscribers, compared to Disney+’s 146.1 million global subscribers.
Disney anticipates the deal to be completed in 2024.
