Disney and Comcast have still not resolved the issue with a valuation of Hulu. Disney is obligated to buy out Comcast’s stake in Hulu, and while Disney has paid Comcast $8.5 billion so far, the final total needs to be decided. Since the two companies can’t agree, it seems that a final valuation will be needed to determine the final price.
Disney, Hulu and Fox each owned about 1/3 of Hulu until Disney bought out Fox’s share with their $71 billion bid for Fox’s assets. As of 2019, Disney has controlled 2/3 of the streaming service with the option to buy out Comcast in January 2024.
Disney has already agreed to complete the buyout. The final price must now be decided.
According to Reuters “sources,” Disney’s valuation conducted by JPMorgan Chase came in at the floor valuation of $27.5 billion, while Comcast’s valuation by Morgan Stanley valued Hulu at $40 billion.
Since the two valuations are more than 10% apart, a third valuation must be done to determine the value. If it comes in less than the floor of $27.5 billion the value will be $27.5 billion. Otherwise, the value will be decided by taking the closer amount and averaging the valuations to reach a final price.
According to the source Disney and Hulu are deciding on a third appraiser for the final decision.
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Source: Reuters on Yahoo
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