Increased Valuations Cause $5 Billion Headache For Disney To Buy Hulu From Comcast
Image Source: IGN
Even though Disney has had a lot of financial issues over the past several years, the jokes remain about the House of Mouse coming to own everything. In December of 2023, it paid Comcast a third of the floor value for Hulu, which came out to a whopping 8.61 billion dollars. That’s not exactly the change you find in your couch.
In any case, Disney wants to completely buy Comcast out for full ownership of the streaming service. The only problem is, that both sides can’t agree on exactly how much the floor value is for the rest of the sale. Both sides have had a third-party appraiser estimate the value, and neither agreed on what the value actually was. Per the agreement, if the values between both banks wasn’t within ten percent of each other, they’d bring in a third bank, and the value would have a final value of the average of the two figures closest together.
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This may not be a good thing for Disney. According to their filing, if NBCU’s evaluation was deemed fair and the third party’s evaluation matched, Disney would be required to pay an additional five billion to complete the transaction. Again, not couch change.
There’s no denying that Hulu is a valuable asset, and owning it outright would be a huge win for Disney, a company that has been having one or two financial problems lately. The cost will be high, though. Very high. And it might be even higher than expected.
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Source: Variety
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