Things within The Walt Disney Company are changing. We’ve seen some major executive leadership changes over the past few months, big announcements about Disney’s plans for the future, and some small but important financial changes ahead of the fourth-quarter earnings call.

©Disney | Walt Disney Company Headquarters

Back in August, we saw Disney’s stock prices drop lower than we’ve seen them in about nine years, and at the Q3 earnings call for fiscal 2023, we learned that Disney’s revenue wasn’t as high as many hoped. But Disney keeps moving forward. Earlier this year, there was a lot of speculation over Disney’s plans to acquire more stake in Hulu. The company already owns about two-thirds of Hulu, and Comcast owns the other third. Fast-forward to September, and Comcast and Disney signed an agreement to begin sale talks for Comcast’s stake in Hulu early, deciding to begin negotiations on September 30th, 2023. Well, as of November 1st, 2023, it seems the two companies reached an agreement. 

Disney is making big moves to further the company’s streaming objectives. The Walt Disney Company just announced that it will acquire the remaining 33% stake in Hulu held by Comcast. According to Disney, the decision came “following Comcast’s November 1st exercise of its right under the put/call arrangement between the two companies.”

Walt Disney Company Headquarters ©LA Times

Per the put/call arrangement, Disney stated it expects to pay NBCU approximately $8.61 billion by December 1st, 2023. That value comes from NBCU’s percentage of the $27.5 billion guaranteed floor value for Hulu that was set when the companies entered into their agreement back in 2019 (minus the anticipated outstanding capital call contributions payable by NBCU to Disney), according to Disney.

Hulu sign in Disney’s Hollywood Studios

Disney further noted that, in accordance with the appraisal process agreed to by Disney and Comcast, “Hulu’s equity fair value will be assessed as of September 30th, 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.” In other words, that $8.61 billion isn’t finalized yet — Disney may have to pay more for that final 33% stake in Hulu.

©Hulu

As explained earlier, September 30th marked the date that sale talks began. At the time, Comcast CEO Brian Roberts said that synergies around Hulu could be worth $30 billion — before adding in the value Hulu itself is worth. Roberts stated he believed Hulu is more valuable today than it was when the $27.5 billion cost was set five years ago. Currently, the timing of the appraisal process is still up in the air, but Disney believes it should be completed during the 2024 calendar year.

©Disney

We will continue to look for updates to this agreement. In the meantime, we’re always on the lookout for the latest Disney news, so stay tuned for more.

Disney Slightly CHANGED the Way It Reports Revenue — Here’s Why.

Join the DFB Newsletter to get all the breaking news right in your inbox! Click here to Subscribe!

WE KNOW DISNEY.
YOU CAN, TOO.

---

Oh boy, planning a Disney trip can be quite the adventure, and we totally get it! But fear not, dear friends, we compiled EVERYTHING you need (and the things to avoid!) to plan the ULTIMATE Disney vacation.

Whether you're a rookie or a seasoned pro, our insider tips and tricks will have you exploring the parks like never before. So come along with us, and get planning your most magical vacation ever!

GET YOUR GUIDE NOW

Do you have a Hulu account? Let us know in the comments!