The Walt Disney Company (NYSE: DIS) will assume full control of Hulu from Comcast Corporation (NASDAQ: CMCSA), effective immediately. Comcast has the option to sell its 33% stake in Hulu to Disney as early as 2024 at a valuation of at least $27.5 billion. As per the agreement, Comcast is guaranteed a payment of at least $5.8 billion.
Both companies have agreed to fund Hulu’s buyout of AT&T’s (NYSE: T) 9.5% stake which took place last month. Comcast has also agreed to extend the license for NBCUniversal live channels and content on Hulu until late 2024 and to distribute Hulu on its cable platform. NBCUniversal also has the option to end most of its content licensing agreements with Hulu in three years.
Disney will launch its streaming service, Disney +, at the end of this year while NBCUniversal plans to launch its own OTT service next spring. NBCUniversal will have the right to provide its content, which is currently exclusive on Hulu, on its own service at the time.
This deal gives Disney a huge advantage over its competitors in terms of the content and services it owns as the competition in the streaming service space heats up.
Last week, Disney reported its second-quarter 2019 earnings results, surpassing market expectations on revenue and earnings.
Disney’s shares were up 1.6% in afternoon trade on Tuesday.
Most Popular
Levi Strauss (LEVI): Digital maintains momentum amid pandemic-induced store closures
Amid the COVID-19 pandemic, several retailers were forced to close their stores but in turn witnessed a pickup in their digital business. Levi Strauss & Co. (NYSE: LEVI) is the
Mattel’s (MAT) transformation plan will depend on how pandemic plays out
The ongoing market turmoil has upset the growth strategy set by Mattel, Inc. (NASDAQ: MAT), with focus on transitioning into an IP-driven company. Currently, the maker of legendary brands like
Lemonade (LMND): A successful IPO of 2020
The usage of artificial intelligence (AI) has accelerated rapidly in the fintech industry. Many insurance companies are using AI to compete with their competitors. These insurance companies use AI in