Disney Strategic Hulu: Disney is poised to acquire Comcasts one-third stake in Hulu for an estimated $8.61 billion, marking a strategic move that will consolidate the streaming service entirely within Disney’s purview. This transaction is expected to conclude later this year.
In a succinct statement, Disney emphasized that this acquisition, at fair market value, aligns seamlessly with its overarching streaming objectives. This development brings an end to the longstanding speculation surrounding Hulu’s fate. However, it’s worth noting that a comprehensive appraisal process, set to be finalized in 2024, will provide a more accurate assessment of the streaming service’s fair value before a final sale price is confirmed.
This move by Disney has its roots in a bid that began back in 2019 under an agreement that placed Hulu’s value at no less than $27.5 billion. Disney’s CEO, Bob Iger, had publicly expressed the company’s intention to acquire the remaining shares of the streaming service, emphasizing their thorough scrutiny of the business as early as March.
This decision arrives as Disney undergoes significant transformations in its media business. Iger has floated the possibility of selling off the ABC division and actively sought a strategic partner for ESPN as the company swiftly shifts from linear television to the streaming domain.
Hulu, a subscription-based streaming platform founded in 2007, initially enjoyed joint ownership by a consortium of media companies, including 21st Century Fox, Comcast, and Time Warner, which was CNN’s former parent company. In recent years, these companies have diverted their attention to their own streaming platforms.
In 2020, NBCUniversal launched its own subscription-based streaming platform, Peacock, leading Comcast to migrate programming from Hulu to the new platform, including content from Bravo and NBC. Nonetheless, Hulu has maintained its growth trajectory with a roster of popular original content, amassing over 48 million subscribers despite price increases.
Disney has successfully bundled the Hulu service with its broader portfolio of streaming offerings, including Disney+ and ESPN+, providing it at a discounted rate within the comprehensive package. Hulu has emerged as a bright spot in Disney’s media empire as the company endeavors to make streaming profitable and cultivate a substantial subscriber base attracted by its extensive entertainment library.
“I’ve had another three months to thoroughly assess this and determine the best course for our business,” Iger remarked during a May earnings call. “The synergy between the content on Disney+ and general entertainment is a compelling combination from a subscriber perspective.”
Disney is set to unveil its quarterly earnings results on November 8.
Also read: Disney at 100-Long Evolution: A Century of Reinvention and Innovation
Our Reader’s Queries
What is Disney going to do with Hulu?
Exciting news for streaming fans! Hulu on Disney+ is set to launch its beta version for Bundle subscribers today, allowing you to watch two of the most popular series without switching between apps. This move marks a significant step forward for Disney and its streaming efforts. The official launch is scheduled for spring, so get ready to enjoy uninterrupted viewing of your favorite shows.
Will Disney absorb Hulu?
Hulu is set to undergo some changes following Disney’s recent acquisition of the streaming service. As a result, both platforms are expected to see some updates in the near future. Madison Durham, a senior staff writer and self-proclaimed TTRPG nerd and avid reader, reports on the latest developments. Stay tuned for more information on what this acquisition means for both Disney and Hulu.
Does Disney own Hulu 100%?
In a recent announcement, The Walt Disney Company revealed its acquisition of Comcast’s $8.6 billion stake in Hulu, effectively solidifying its control over the popular streaming service. This move marks a significant step forward for Disney, as it continues to expand its reach in the entertainment industry. With this acquisition, Disney is poised to further enhance its already impressive portfolio of content offerings, providing viewers with even more high-quality entertainment options.
Why does Disney want to buy Hulu?
By integrating Hulu into Disney+, the company anticipates a boost in engagement, advertising revenue, and a decrease in customer churn and acquisition costs. This move is expected to increase profit margins for Disney. Additionally, the current bundle prices are significantly lower, at least 37%, than the cost of subscribing to both services separately.