Comcast A+0.74%
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Comcast to sell Hulu stake to Disney in 5 years
Comcast has agreed to sell its stake in video streaming platform Hulu to Disney within five years and relinquish voting rights with immediate effect, CNBC reported on Tuesday.
Under the terms of the deal, Comcast could either sell Hulu at a valuation of $27.5 billion or whichever other amount it is appraised to be in five years' time, during which time Disney will also pay Comcast for its Hulu content. In addition, Comcast-owned NBC channels will be on Hulu Live at a higher rate than was previously agreed and NBC will be able to use the same content on its own streaming platform, which is expected to launch in spring next year. It is expected that NBC will charge less than $12 monthly for non-pay TV subscribers while pay TV subscribers will not be charged anything. NBC is currently paid $500 million annually for its library content on Hulu.
The news confirms previous reports which stated that the two companies were in talks over the sale of Comcast's 30% stake in Hulu. Disney currently holds a 60% stake in the video streaming platform and the deal will see it take full control of Hulu once it is completed.