The tug of war over Hulu is over.
Disney said in a securities filing on Monday that it had agreed to pay Comcast an additional $439 million for full control of the streaming service, ending a year and a half dispute over the amount. Disney had argued that it owed Comcast nothing beyond the $8.6 billion it already paid for Comcast’s 33 percent stake — and Comcast countered that Disney owed another $5 billion. Eventually, a third-party appraiser was brought in.
The relatively small new payment will not affect Disney’s previous guidance for overall company growth in the current fiscal year, Disney said in the filing. The deal is expected to close by July 24. Robert A. Iger, Disney’s chief executive, said in a statement that full ownership of Hulu would allow for “a deeper and more seamless integration of Hulu’s general entertainment content with Disney+” and for bundled sales with a new ESPN streaming service that is planned for introduction later this year.
In a separate statement, Comcast called Hulu “a great start for us in streaming,” adding “we wish Disney well.” Comcast’s primary streaming service is now Peacock, which it has been loading with sports content as it seeks to expand advertising sales and subscriber counts. Peacock, which has been unprofitable, has about 41 million subscribers.
Hulu, one of the first streaming services, started as a joint venture between Disney, Comcast and Time Warner. It now offers programming from Disney’s traditional television networks, including ABC and FX, in addition to original series, including “Only Murders in the Building.” Hulu, which is profitable, has about 55 million subscriptions.
To increase engagement on Disney+ and slow subscriber churn, Disney last year began allowing people who pay for both Disney+ and Hulu to watch both services through the Disney+ interface. That strategy has been a success for Disney, analysts have said. Some analysts expect Disney to eventually discontinue Hulu as a stand-alone app and make it a tile within Disney+.
Brooks Barnes covers all things Hollywood. He joined The Times in 2007 and previously worked at The Wall Street Journal.
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