What entertainment giant now has control of Hulu?
Disney's deal with Comcast sets value of at least $27.5 billion for streaming service
By Rex Crum | rcrum@bayareanewsgroup.com | Bay Area News Group
PUBLISHED: May 14, 2019 at 8:03 am | UPDATED: May 14, 2019 at 4:36 pm
The Walt Disney Co. said Tuesday it has reached a deal with Comcast to obtain full operational control of Hulu in a move that gives the entertainment giant a stronger foothold in the streaming TV market ahead the debut of its upcoming Disney+ service.
Under terms of the deal, Disney — which had owned two-thirds of Hulu — immediately will take over all the day-to-day running of the streaming TV provider, and it has until 2024 to pay Comcast at least $5.8 billion for its one-third share. Disney has agreed that the minimum value of Hulu at the time it pays for Comcast's share of the company will be $27.5 billion.
Comcast's NBCUniversal also has agreed to continue licensing content to Hulu until 2024, and it also will offer Hulu on its Xfinity X1 cable TV platform. However, beginning next year, NBCUniversal will have the right to offer its content that had been exclusively licensed to Hulu to other outlets, and can begin cancelling its content deals with Hulu starting in 2022.
The deal comes about a month after AT&T sold its 9.5% stake in Hulu to Disney and Comcast for $1.43 billion.
The moves are all part of what is turning out to be a reshaping of the streaming TV landscape in order to take on industry kingpin Netflix and its base of almost 149 million paying subscribers worldwide.
In addition to Disney launching the subscription-based Disney+ in November, NBCUniversal has targeted next year for the debut of its own streaming TV service. It will be free and supported by advertising. Apple has also given some details about its upcoming Apple TV+ streaming option, which is slated to premiere later this year, and reportedly with content produced solely for its service.
Rex Crum
Rex Crum is the senior web editor for the business section for The Mercury News and Bay Area News Group. He also writes about business and technology for the publications' print and web editions, and has covered business and technology for nearly two decades. A native of Seattle, he remains a diehard Seahawks and Mariners fan and is imparting his fandom to his Oakland-native wife and two young daughters.
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