Comcast is making headlines as it eagerly awaits its first payment from Disney for its stake in Hulu. The company’s President, Mike Cavanagh, shared the news at a recent UBS media conference in NYC, revealing that the anticipated $8.5 billion check from Disney had arrived on December 1.
Disney is set to acquire the remaining 33% stake in Hulu, solidifying its ownership of the streaming platform. The 2019 agreement between the Hulu owners established a floor of about $8.5 billion, but any additional payout will depend on an ongoing evaluation process involving both companies and their investment banks. This evaluation process, initially scheduled for January 2024, was moved up to this fall.
Hulu is still under Disney but this move will serve as an extension of Disney+. Currently, Disney+ is exclusive to Disney kind of content that includes Marvel, Sar Wars and Percy Jackson kinda thing. Hulu will host different kinda stuff like Only Murders In The Building and more. This way, the bigger Disney will continue to make a variety of content while maintaining their image.
Cavanagh expressed optimism about the outcome, stating that while the initial check is in the account, they expect and hope for more as the evaluation process concludes. The deal included a put/call option that allowed Comcast to ‘put’ its stake in Disney, and Disney, under the leadership of Bob Iger, decided to buy it.
On the streaming front, the President provided updates on Peacock, noting that it has reached 30 million paying subscribers. Despite anticipating peak losses of $2.8 billion for the year, he expressed confidence in Peacock’s performance. Shifting to the film studio, he acknowledged the possibility of more release schedule shifts but conveyed optimism about the 2024 slate.
In summary, Hulu will be just another name for Disney+.