When Disney acquired 21st Century Fox last March part of the deal included Fox’s 30% share of Hulu. At the time, it seemed inevitable Disney would eventually take full control of the streaming service but it’s happened sooner than some would have imagined.
Announced today, Disney will acquire Hulu (and Hulu with Live TV) in five years for a minimum of $5.8 billion. But that amount could change upon the valuation of the company at a future sale time (which either company could initiate).
As of now, the company’s value was set at $27.5 billion (the guaranteed sale price) — a substantial increase from last month’s valuation of $15.8 billion. The company boasted 28 million subscribers at the end of April 2019.
Regardless of the sale that wouldn’t happen until 2024, Disney now has full voting control with Comcast acting as a silent partner.
“Hulu represents the best of television, with its incredible array of award-winning original content,” said Disney’s chief executive, Robert A. Iger.
He said he expects the company to turn a profit in about five years.
WarnerMedia, once a 10% stakeholder, sold back its interest to Hulu in April for $1.43 billion.
[Editor: Updated for clarification on future Hulu value.]
