Disney has announced that it will purchase the remaining shares in the streaming service Hulu. In this post, you will get all the information related to Disney and Hulu.
How Much Will Disney Have to Pay to Buy Hulu?
The business announced on Wednesday, November 1, 2023 that it would buy the remaining 33% shares of Hulu.
Disney to buy remaining 33% stake in streaming service Hulu https://t.co/I4nH0haR4N
— BBC News (World) (@BBCWorld) November 2, 2023
Disney would then have complete control over the streaming service and be able to integrate it with its own Disney+ network. Disney has been locked in battle with other streamers as profits have fallen. It will probably cost Disney $8.6 billion (£7 billion) to complete its buy of Hulu, the company stated in a statement.
Disney, $DIS, to buy remaining 33% stake in Hulu from Comcast for at least $8.6 billion
— unusual_whales (@unusual_whales) November 1, 2023
However, it said that in an effort to increase subscriber counts, the action will “further Disney’s streaming objectives”. The massive entertainment company currently offers Hulu in bundles with its ESPN+ and Disney+ platforms in the US.
Some Hulu content, like “The Kardashians and The Bear” is already accessible to view in the UK through the Disney+ app. The price represents a “guaranteed floor value” for the streaming service which was created after California-based Disney acquired the bulk of Hulu in 2019 together with Rupert Murdoch’s 21st Century Fox in a massive deal.
Disney and Comcast had an agreement that year that gave them the power to force Comcast to sell its share of Hulu and officials have expressed a strong desire to close a deal.
Nonetheless, Comcast CEO Brian Roberts called Hulu a “scarce kingmaker asset” at a conference this year, saying that it was “way more valuable today” because of its blockbusters such the television series “Only Murders in the Building”.
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When Will The Deal Be Closed?
Disney stated that, despite continuing talks with Comcast, the parent company of NBC Universal, it hoped to close the deal by December 1st.
Disney said it would pay NBC Universal the difference if it turned out that Hulu was worth more than the guaranteed price. Hulu has about 48.3 million users right now, while Disney has 146.1 million around the world.
Bob Iger, the CEO of Disney told investors in August that the company was working on making one app in the US where all of its different brands’ material could be found.
Since markets started working again after being shut down because of the pandemic, there has been a lot of competition for people’s attention. Disney said in August that its profits were still going down because of a number of problems such as poor performance by its movies and a big drop in advertising sales in its standard TV business.
The company’s overall sales grew by 4% year over year in the three months ending July 1, but it lost $460 million, whereas it made $1.4 billion during the same time last year. Besides Disney, other streams have also been thinking about how to make money and stop people from sharing passwords.
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