Categories Technology, U.S. Markets News

Disney set to take full control of Hulu from Comcast

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.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

HD Stock: What’s in store for Home Depot after record second quarter

Home improvement is one of the top activities that kept Americans busy during the pandemic, a trend that enabled The Home Depot, Inc. (NYSE: HD) to beat the crisis and

Target (TGT) stock drops after Q2 earnings miss estimates; revenue up 4%

Department store chain Target Corporation (NYSE: TGT) reported a sharp decline in adjusted earnings for the second quarter of 2022, despite an increase in net sales. The bottom line also fell

Amazon (AMZN) stock remains a good bet despite poor results. Here’s why

Amazon.com, Inc. (NASDAQ: AMZN) became an inspiration for other players in the eCommerce sector as the online retailer successfully channelized its resources to tap into the spike in demand for

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top