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Disney to take full control over Hulu, Comcast has option to sell its stake in 5 years

by Iyzklez
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Disney will take “full operational control” over Hulu from Comcast, effective immediately, the companies announced in a press release Tuesday.

Comcast also has an agreement to enforce an option to sell its 33% stake in Hulu to Disney in 2024 at a valuation of at least $27.5 billion.

Comcast will sell its Hulu stake to Disney, giving Disney full operational control
Disney will take “full operational control” over Hulu from Comcast, effective immediately, the companies announced in a press release Tuesday. Comcast also has an agreement to enforce an option to sell its 33% stake in Hulu to Disney in 2024 at a valuation of at least $27.5 billion.

Comcast could either sell its stake in Hulu at a valuation $27.5 billion or whatever Hulu is appraised to be worth in five years. Disney guaranteed Comcast a sale price representing a minimum total equity value of $27.5 billion, according to the release.

As part of the deal, Disney has agreed to pay Comcast for its Hulu content for the next five years.

NBC channels will be on Hulu Live at a higher rate than previously agreed. NBC will also be able to run the same content on its own streaming platform which is expected to launch in the spring of next year.

NBC will be charging less than $12 a month for non-pay TV subscribers. For pay TV subscribers the service is free. NBCUniversal will have the option of ending most of its content license agreements with Hulu in three years, according to the release. In one year, NBCUniversal will be able to exhibit some of its own content that is currently exclusively licensed to Hulu in exchange for a reduced license fee for Hulu, the release said.

Currently, NBC gets paid $500 million a year for its library content on Hulu.

Hulu bought back a 9.5% stake from AT&T last month in a deal that valued the company at $15 billion. Disney and Comcast had agreed to fund that purchase in accordance with their two thirds to one third ownership. Now, Comcast “will have the option but not the obligation to fund its proportionate share of Hulu’s future capital gains calls and will be diluted if it elects not to fund,” according to the release.



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