The Walt Disney Company has announced its plans to purchase Comcast's 33% stake in the streaming service, Hulu, LLC. This move comes as part of Disney's ongoing efforts to strengthen its position in the streaming industry.

As per the put/call arrangement between Disney and Comcast, the acquisition will take place after Comcast exercised its right on November 1. The terms of the agreement state that Disney will pay NBC Universal (NBCU), a subsidiary of Comcast, approximately $8.61 billion, which represents NBCU's percentage of the $27.5 billion guaranteed floor value for Hulu. This value was set during the initial agreement between the companies in 2019.

However, the actual equity fair value of Hulu will be assessed as of September 30, 2023, under an appraisal process agreed upon by Disney and Comcast. If the determined equity fair value exceeds the guaranteed floor value, Disney will pay NBCU its percentage of the difference. The exact timing of this appraisal process remains uncertain, but it is expected to be completed sometime in the 2024 calendar year.

By acquiring Comcast's stake in Hulu, Disney aims to further its streaming objectives and solidify its presence in the competitive streaming market. Hulu has gained considerable popularity in recent years, with a wide range of shows and movies available for streaming. The acquisition will give Disney more control over the content and operations of the streaming platform, allowing it to better compete with other major players in the industry.

The consolidation of Hulu under Disney's ownership is expected to bring about synergies and opportunities for further growth. Disney already owns a majority stake in Hulu, with 67% ownership, and this latest acquisition will make Hulu a wholly owned subsidiary of the entertainment giant.

For now, Disney and Comcast will continue to work together to ensure a smooth transition of the stake ownership. Both companies recognize the potential benefits that this acquisition will bring, not only for their respective businesses but also for the millions of Hulu subscribers worldwide.

As the streaming industry continues to evolve and competition intensifies, the acquisition of Comcast's stake in Hulu marks an important strategic move for Disney. It allows Disney to further expand its presence in the streaming market and strengthens its position as a major player in the entertainment industry.