Comcast, Disney Can’t Agree on Price for Hulu; Ask Mediators to Help Determine Valuation

The saga over Hulu ownership continues. When Disney purchased the bulk of 21st Century Fox's assets in 2019, that meant that the family-focused entertainment company became the majority owner of the Hulu streaming service. Part of the deal to take control over the streamer was that in 2024, Disney could purchase the remaining one-third ownership share — or be compelled to — by Comcast.

• Both Disney and Comcast can officially trigger the sale starting in November.
• When Disney bought Fox’s share of Hulu, it agreed to a minimum $27.5 billion valuation on the platform for a future sale.
• The two sides have not agreed on a sale price, so have asked investment bankers to help determine Hulu’s value.

Why Can Comcast Force Disney to Buy the Remaining Share of Hulu?

The complicated contractual agreement says that Disney has the right to buy Comcast out of Hulu, or that Comcast has the right to force Disney to buy it out as early as 2024. Last month, the two sides moved up their bargaining timetable and they each could trigger the sale period starting on Nov. 1. In 2019, both sides agreed to a minimum valuation for Hulu of $27.5 billion, meaning that to own the streamer completely, Disney would need to pay Comcast at least $9.17B.

However, Comcast CEO Brian Roberts has long stated in public that he believes that the service is worth far more than the minimum valuation agreed upon four years ago. While business analysts disagree as on Hulu's current valuation, Comcast and Disney have turned to a pair of investment bankers to help determine the official sale price.

This part of the process was also part of the 2019 contract between the two and Comcast has retained Morgan Stanley for the job and Disney has brought in JPMorgan Chase. Due to the strikes that have gripped Hollywood for nearly six months, the two sides agreed to the expedited timing, meaning that either side can execute their right to force the sale beginning in November; early last month, Roberts said that he anticipates that happening.

How Much Does a Subscription to Hulu Cost? Will It Go Up When Disney Buys Out Comcast?

On Thursday, Oct. 12, the prices for all Disney-owned streaming services — including Hulu — increased. So now, a subscription to Hulu’s standard subscription video-on-demand (SVOD) service will cost $7.99 per month or $79.99 annually for the ad-supported version and $17.99 monthly for the ad-free option. The platform’s live TV streaming also saw a price increase. Hulu + Live TV will now run $76.99 per month for the option that includes ads in on-demand content and $89.99 for the ad-free tier.

Any time a corporation has to pay to acquire something, eventually those costs are passed on to consumers. However, since Disney just executed a fairly substantial price hike, it is unlikely that the company will increase prices again immediately after acquiring the final third of Hulu. However, it is very possible that when the House of Mouse does eventually raise prices again that it will do so at a higher rate had Hulu’s ownership remained split with Comcast.

What Are the Current Prices for Hulu, Disney+, and ESPN+?

30-Day Trial

hulu.com

Hulu

Hulu is a video streaming service that gives access to thousands of full seasons of exclusive series, hit movies, kids shows, and Hulu Originals like “Only Murders in the Building,” and “The Handmaid’s Tale.”

…

It offers a good selection of current TV shows and its ad-supported tier is cheaper than both Netflix and Amazon Prime Video. You will be able to watch most shows from networks like ABC and Fox, and cable channels like FXX, FXM, HGTV, and more.

The service has a Limited Commercials plan for $7.99 a month, or you can upgrade to their No Ads plan for $17.99 a month. For $76.99 a month, you can get Hulu Live TV from major cable channels, live locals and regional sports networks.

30-Day Trial

$7.99+ / month

hulu.com