Disney acquiring remaining stake in Hulu

The Walt Disney Company has announced that it will acquire the remaining 33% stake in Hulu from Comcast for approximately $8.61 billion. The deal should be finalized by December 1, 2023 and will give Disney full control over the streaming service. According to Disney, “The acquisition of Comcast’s stake in Hulu at fair market value will further Disney’s streaming objectives.”¹

Disney has actually managed Hulu since 2019 when Comcast became a silent partner in the streaming service giving their authority to Disney. In addition, when Disney+ launched in November 2019, Disney offered a streaming bundle that included Hulu and also ESPN+; therefore, treating Hulu as one of it’s own streaming businesses.

Brief History of Hulu

Hulu launched on October 29, 2007 as a joint venture between several major partners. It was initially a free service. In 2010, Hulu launched their subscription service which included full seasons of programs and movies. Disney was not an initial investor in Hulu but joined the venture in 2009. Then when Disney acquired 21st Century Fox in 2019, the company became the majority controller in the streaming service.

Disney has mostly used Hulu to stream it’s ABC programs and some of it’s less family-friendly movies along with other programs and movies from other entertainment studios. Most recently, Disney added “Once Upon a Studio”, it’s 100th anniversary animated short, to Hulu. Disney has not announced it’s plans for Hulu once the acquisition has been completed. Bob Iger did mention in a recent shareholders meeting that the company is planning seamless streaming platform between Disney+ and Hulu where subscribers of both services could easily switch between the two services. He did not go into further details on how or when that option would be able.

What’s Next?

The Walt Disney Company’s next shareholders webcast for it’s fiscal year end and forth quarter earnings is scheduled for Wednesday, November 8, 2023 at 4:30 p.m. ET / 1:30 p.m. PT so we should hear a little more about the Hulu acquisition as well as possible plans for Hulu.

Are you a Hulu subscriber? And are you also a Disney+ subscriber? What are your thoughts on the merger? Let me know your thoughts. I would love to hear from you.