Disney will buy out remaining 33% stake in Hulu from Comcast for $8.6B - giving ... trends now
Comcast has triggered a provision forcing Disney to buy out its 33 percent stake in Hulu for a minimum of $8.6 billion, initiating a deal that will give Disney full ownership of the streamer, and freedom to merge it with Disney+.
Disney announced the move on Wednesday, and will be required to close the deal before the end of the month. The sale price could rise if an independent valuation finds Hulu is worth more.
The Burbank, California-based entertainment giant gained a controlling interest in Hulu as part of its $71 billion acquisition of 21st Century Fox's film and television assets.
The transaction gave Disney a competitive leg up in the streaming wars, allowing it to sell Disney+ in a discounted bundle with ESPN+ and Hulu. It's unclear what impact full ownership of Hulu will have on Disney's plans for future streaming options and pricing.
The company said in a statement on the deal: 'The acquisition of Comcast's stake in Hulu at fair market value will further Disney's streaming objectives.'
Disney CEO Bob Iger is seen above. Comcast has triggered a provision forcing Disney to buy out its 33 percent stake in Hulu for a minimum of $8.6 billion
Hulu's logo is seen on a laptop