Disney recent announcement has confirmed their plan to acquire the remaining 33% stake in the streaming service Hulu.
This acquisition will give the company full ownership of Hulu, enabling them to seamlessly integrate it into their platform.
As the streaming wars continue, the company has faced stiff competition, with falling profits driving their efforts to expand their streaming services. The cost of completing this takeover is estimated at approximately $8.6 billion, a substantial investment by Disney.
According to BBC, in the United States, the company already offers Hulu as part of bundled packages with Disney+ and ESPN+. Additionally, some Hulu content is available for UK viewers via the Disney+ app.
The price tag for this acquisition reflects a “guaranteed floor value” established when Disney acquired a majority stake in Hulu during its acquisition of 21st Century Fox in 2019.
The deal is expected to be concluded by December 1st, pending ongoing negotiations with Comcast, NBC Universal’s parent company. Hulu currently boasts approximately 48.3 million subscribers, while the streaming services collectively have 146.1 million subscribers worldwide.
Disney+ reported a loss of $460 million, compared to a $1.4 billion profit in the same period the previous year.
Production delays caused by SAG-AFTRA strikes in the film and television sector have also affected the release of new content. Adding another layer of complexity to the competition for viewers attention.
