https://www.fastcompany.com/91169488/disney-pay-another-5-billion-comcast-hulu-stake-explained When exactly will it be Disney's 100%? It seems like Comcast still has a 33% share of it, which the buyout hasn't closed yet.
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Ownership of Hulu
- Thread starter tall_guy1
- Start date
A year ago.
From Variety:
Disney Says It Might Have to Pay Comcast up to $5 Billion More to Buy Out Hulu
Disney disclosed that it might have to pay up to $5 billion more to complete the buyout of NBCUniversal's 33% stake in Hulu.
variety.com
So Comcast does not have a 33% ownership of Hulu currently or does it pend?A year ago.
From Variety:
Disney Says It Might Have to Pay Comcast up to $5 Billion More to Buy Out Hulu
Disney disclosed that it might have to pay up to $5 billion more to complete the buyout of NBCUniversal's 33% stake in Hulu.
The most likely scenario is that Disney's $8.6 billion was enough for Comcast to hand them the keys.
Comcast triggered the sale, which means it wanted out. To stay in until the "you owe us change" argument gets resolved would mean Comcast would continue to be on the hook for a third of the expenses of doing day-to-day business at Hulu. That would not be in Comcast's best interest.
That $8.6 billion was one-third of a previously agreed-upon "floor value" for Hulu. But the original deal said the final amount paid would be based on a fair market appraisal at the time of sale.
Disney's appraisal was below the "floor value", and Comcast's was above it. That put the two parties in arbitration, where an independent accounting company will do another appraisal, and announce a figure that the two parties will have to accept.
There have been no announcements from Disney since August, when it filed its Q3 financial reports, disclosing that it might end up having to give Comcast an additional $5 billion (see PTBoardOp93's post).
There is nothing about that possible additional expense in the Q4 reports, filed in mid-November (Disney's fiscal year is September 30-September 30), suggesting that, as of September 30, the independent appraisal still was not complete.
Keep watching the business pages and the quarterly filings. As for timing, that's the first sentence of the second paragraph of TallGuy1's linked article:
Disney's not gonna stiff Comcast. They'll write whatever check the independent accounting firm tells them is the right number. If it is $5 billion, that's significant (a 58% increase in what Disney ultimately pays for Comcast's share of Hulu) and it'll probably make some waves with stockholders.
Comcast triggered the sale, which means it wanted out. To stay in until the "you owe us change" argument gets resolved would mean Comcast would continue to be on the hook for a third of the expenses of doing day-to-day business at Hulu. That would not be in Comcast's best interest.
That $8.6 billion was one-third of a previously agreed-upon "floor value" for Hulu. But the original deal said the final amount paid would be based on a fair market appraisal at the time of sale.
Disney's appraisal was below the "floor value", and Comcast's was above it. That put the two parties in arbitration, where an independent accounting company will do another appraisal, and announce a figure that the two parties will have to accept.
There have been no announcements from Disney since August, when it filed its Q3 financial reports, disclosing that it might end up having to give Comcast an additional $5 billion (see PTBoardOp93's post).
There is nothing about that possible additional expense in the Q4 reports, filed in mid-November (Disney's fiscal year is September 30-September 30), suggesting that, as of September 30, the independent appraisal still was not complete.
Keep watching the business pages and the quarterly filings. As for timing, that's the first sentence of the second paragraph of TallGuy1's linked article:
Disney's not gonna stiff Comcast. They'll write whatever check the independent accounting firm tells them is the right number. If it is $5 billion, that's significant (a 58% increase in what Disney ultimately pays for Comcast's share of Hulu) and it'll probably make some waves with stockholders.
Woah for some time NBC has been putting promos to watch their shows on Peacock app. Had no idea they still had a stake in Hulu but that’s a carryover when Hulu was supposed to have Fox, Comcast and Disney as a joint venture when that started. When Disney bought the then 20th Century Fox/ 20th Century Studios that’s when Disney got majority stake of Hulu.
This is the event that sparked Comcast to build their own TV app Peacock and move their content out of Hulu when their broadcast and streaming contracts are either up for renewal or cancelled.
This is the event that sparked Comcast to build their own TV app Peacock and move their content out of Hulu when their broadcast and streaming contracts are either up for renewal or cancelled.
Maybe that will allow them to do away with the Hulu app and migrate all the content (and subscribers) to Disney+.
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