Disney Acquires Full Ownership of Hulu After Buying Comcast's Stake for $9.05 Billion

On June 9, 2025, The Walt Disney Company finalized its acquisition of Comcast's 33% stake in Hulu, securing full ownership of the streaming service. This transaction concludes a protracted appraisal process initiated in 2019, when Disney and Comcast agreed on a minimum valuation of $27.5 billion for Hulu. In December 2023, Disney made an initial payment of $8.61 billion to Comcast. Following the completion of the appraisal, Disney agreed to pay an additional $438.7 million, bringing the total acquisition cost to approximately $9.05 billion.

Hulu was launched in 2007 as a joint venture among several media companies, including NBCUniversal (owned by Comcast), 21st Century Fox, and Disney. The platform was designed to offer on-demand access to television shows and movies, serving as a digital extension of traditional broadcast and cable networks. Over the years, Hulu expanded its content library to include original programming, such as "The Handmaid's Tale" and "Only Murders in the Building," which have garnered critical acclaim and a dedicated subscriber base.

In 2019, Disney acquired 21st Century Fox's entertainment assets for $71 billion, which included Fox's stake in Hulu. This acquisition increased Disney's ownership in Hulu to 67%, granting it majority control. Subsequently, Disney and Comcast entered into an agreement that allowed either party to trigger a sale of Comcast's remaining 33% stake to Disney, with a minimum valuation of $27.5 billion for Hulu.

In November 2023, Comcast exercised its right to sell its 33% stake in Hulu to Disney. An initial payment of $8.61 billion was made by Disney in December 2023, based on the minimum valuation agreed upon in 2019. However, to determine Hulu's fair market value, an appraisal process was initiated, involving third-party evaluators. The appraisal concluded with a valuation that required Disney to pay an additional $438.7 million to Comcast, bringing the total acquisition cost to approximately $9.05 billion.

Disney CEO Bob Iger expressed satisfaction with the resolution, stating, "We are pleased this is finally resolved. We have had a productive partnership with NBCUniversal, and we wish them the best of luck." He emphasized that full ownership would facilitate deeper integration of Hulu's content with Disney+ and ESPN's forthcoming direct-to-consumer platform, providing an unrivaled value proposition for consumers.

Comcast acknowledged Hulu's success, noting that the venture generated nearly $10 billion in proceeds and provided a significant platform for NBCUniversal content. A Comcast spokesperson stated, "Hulu was a great start for us in streaming that generated nearly $10 billion in proceeds for Comcast and created an important audience for NBCUniversal's world-class content."

Full ownership of Hulu allows Disney to unify its streaming platforms under a single vision. Hulu's 54.7 million subscribers and its robust ad-supported model are now fully integrated with Disney+. This enables cross-promotion, bundled pricing, and streamlined content libraries. For instance, Disney can now push its blockbuster movies to Hulu subscribers seamlessly, while leveraging Hulu's ad revenue to offset Disney+'s subscription losses.

CEO Bob Iger has emphasized merging Hulu's tech platform with Disney+ to create a "one-stop shop" for subscribers—a move that could reduce churn by 10–15%, according to internal estimates. The bundling of Hulu with ESPN+ also positions Disney to capture sports fans migrating from traditional TV.

While the $438.7 million payment will reduce Disney's net income in Q3 2025 (recorded as a "noncontrolling interest" charge), it's excluded from Disney's Adjusted EPS guidance. This means the deal won't impact Wall Street's earnings expectations, which are already strained by streaming losses. However, investors should note that Hulu's contribution to free cash flow remains modest: in 2024, Hulu generated $2.3 billion in revenue but lost $600 million due to content costs.

The real value lies in synergy. By eliminating operational redundancies (e.g., shared marketing, tech infrastructure), Disney could save $300–500 million annually. Over time, these savings, combined with Hulu's ad revenue growth (projected to hit $3 billion by 2026), could turn Hulu into a profit engine.

Following the announcement, Disney's stock experienced a modest increase, reflecting investor confidence in the strategic benefits of the acquisition. As of July 22, 2025, Disney's stock price stood at $121.23, with a slight increase from the previous close. Comcast's stock also saw a minor uptick, trading at $35.08 on the same date.

The consolidation of Hulu under Disney's full ownership signifies a broader trend in the media industry toward vertical integration, where companies seek to control both content creation and distribution. This move could lead to increased competition among streaming services, potentially resulting in more diverse content offerings and innovative bundling strategies. However, it also raises questions about market concentration and the potential impact on consumer choice and pricing.

In conclusion, Disney's acquisition of Comcast's stake in Hulu marks a pivotal moment in the company's streaming strategy. By securing full ownership, Disney is poised to enhance its content offerings, streamline operations, and strengthen its position in the competitive streaming landscape. The integration of Hulu with Disney+ and ESPN's direct-to-consumer platform is expected to provide consumers with a comprehensive and seamless entertainment experience.