The Walt Disney Co. and Comcast said they made a put/call deal under which, in 2024, Comcast can make Disney buy the 33% of the streamer it doesn’t own, or Disney can require Comcast to sell the stake to it.
“Hulu represents the best of television, with its incredible array of award-winning original content, rich library of popular series and movies, and live TV offerings," said Disney CEO Bob Iger. "We are now able to completely integrate Hulu into our direct-to-consumer business and leverage the full power of The Walt Disney Company’s brands and creative engines to make the service even more compelling and a greater value for consumers.”
For now Disney has guaranteed a sale price for Comcast that values Hulu at $27.5 billion.
NBCU agreed to extend the license of its content to Hulu through 2024. It also extended its carriage of NBCU on the Hulu Live product. NBCU can terminate these agreements in three years.
NBCU will also be able to put its content on its own streaming service. In that case, the fee paid by Hulu will be reduced.
Comcast agreed to integrate Hulu into its Xfinity X1 platform.
The two companies have also agreed to finance Hulu’s buyout of AT&T’s 9.5% stake in Hulu. They’ve also agreed that if Disney brings other partners into Hulu, Comcast’s stake will never be less than $21%, worth at least $5.8 billion.