Disney Resolves Hulu Valuation Dispute; Pays Additional $438.7 Mln For Full Ownership

June 09, 2025 06:09 PM PDT | By EODHD

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Disney Resolves Hulu Valuation Dispute; Pays Additional $438.7 Mln For Full Ownership — Image source: Kalkine Media

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(RTTNews) - Walt Disney Co. (DIS) has successfully resolved its prolonged dispute with Comcast's NBCUniversal over Hulu's valuation. As part of the agreement, Disney will pay an additional $438.7 million to acquire NBCU's remaining stake in Hulu, securing full ownership of the streaming platform. "We are pleased this is finally resolved. We have had a productive partnership with NBCUniversal, and we wish them the best of luck.

Completing the Hulu acquisition paves the way for a deeper and more seamless integration of Hulu's general entertainment content with Disney+ and, soon, with ESPN's direct-to-consumer product, providing an unrivaled value proposition for consumers," Robert Iger, Chief Executive Officer, The Walt Disney Company said in a statement. Disney disclosed in a regulatory filing that the additional amount will be recorded in Net income attributable to noncontrolling interests and thus reduce Net income attributable to Disney in or Condensed Consolidated Statements of Income for fiscal third quarter. The amount is also expected to be excluded when Disney reports Adjusted Earnings per share, and therefore is not expected to impact Disney's previous guidance on fiscal 2025 adjusted earnings share. Disney noted that the acquisition of NBCU's interest in Hulu will close on or before July 24, 2025. On November 1, 2023, NBCUniversal exercised its right under a put/call arrangement, requiring Disney to purchase its 33% stake in Hulu at a price based on either Hulu's appraised equity fair value or a guaranteed floor value of $27.5 billion.

In December 2023, Disney paid NBCUniversal approximately $8.6 billion, reflecting the guaranteed floor value minus NBCU's unpaid capital contributions. The appraisal process then began, with Disney's valuation coming in below the guaranteed floor value and NBCU's valuation significantly higher. On June 9, 2025, a third-party appraiser finalized Hulu's equity fair value. If the valuation had matched or fallen below the guaranteed floor value, Disney would owe no additional payment. However, had the valuation aligned with NBCU's higher estimate, an additional amount of up to $5 billion could have been payable to NBCUniversal.

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