Disney said it plans to buy Comcast’s one-third of the Hulu streaming service, kicking off an appraisal process that will extend into next year.
The entertainment giant said in a statement Wednesday that it expects to pay at least $8.61 billion for the stake, including capital contributions payable to Disney by Comcast. Under a previous deal, Comcast and Disney agreed that the total value of Hulu would be no less than $27.5 billion.
The statement marks the start of negotiations expected to last months. The final price will be settled through an appraisal process and is likely to involve up to three investment banks, the companies said previously. Disney expects a deal to be completed next year.
Comcast in a statement it looks forward to the appraisal process, which “we expect will reflect the extraordinary value of the business.”
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The value of Hulu, which has about 50 million subscribers, is far higher than the floor price that was previously agreed to by the companies, Comcast chief executive Brian Roberts has said.
“The company is way more valuable today than it was then,” Roberts told attendees at a Goldman Sachs conference in September. “And so, it will take a little time for this to play out.”
Bob Iger, who returned as Disney CEO last November, is working on integrating Hulu into the company’s flagship Disney+ streaming service.
He’s also considering shedding legacy assets including Disney’s linear networks and has said he’s open to selling a minority stake in the ESPN sports division. - Bloomberg
