Disney Takes Full Control of Hulu as War on Netflix Heats Up

Walt Disney will take full control of Hulu in a deal with co-owner Comcast that envisions the value of the streaming service soaring to more than $27 billion in five years, according to Bloomberg.

The accord represents a big bet by Disney on continued rapid growth for Hulu, home of original hits such as “The Handmaid’s Tale.“ Under the terms, Comcast is guaranteed a $5.8 billion windfall by early 2024, when the cable giant can sell its stake to Disney.

Hulu will be a key weapon in Disney’s growing online fight with Netflix, and the deal gives the service access to programming from Comcast’s NBCUniversal division for at least three more years. Disney expects Hulu to have as many as 60 million subscribers by fiscal 2024, up from 25 million last year, and is counting on it to complement the new Disney+ streaming service launching in November.

“We are now able to completely integrate Hulu into our direct-to-consumer business,“ Disney Chief Executive Officer Bob Iger said in a statement. The transaction, leaving Hulu run by just one media company for the first time, marks the end of one of the most complicated ownership sagas in entertainment.

Disney acquired majority ownership of Hulu this year by buying Fox’s stake as part of its $71 billion purchase of Rupert Murdoch’s entertainment empire. Just a month ago, Hulu was valued at $15 billion, when Disney engineered the purchase of AT&T’s 9.5% stake.

Disney will split its TV shows and movies between two entertainment streaming services, Disney+ and Hulu. Disney+ will offer programming from Marvel, Pixar and Star Wars. Shows from FX will be on Hulu, said FX CEO John Landgraf. Content from NatGeo will be on both services.