Disney to pay NBCUniversal additional $438.7M for Hulu stake

According to a regulatory filing, Disney (DIS) said that on November 1, 2023, a subsidiary of NBC Universal (CMCSA) provided notice to a subsidiary of Disney of its exercise of its right under a put/call arrangement to require Disney to purchase NBCU’s 33% interest in Hulu, LLC at a value based on NBCU’s equity ownership percentage of the greater of Hulu’s equity fair value, determined pursuant to a contractual appraisal process, or a guaranteed floor value of $27.5B. In December 2023, Disney paid NBCU approximately $8.6B, which reflected the guaranteed floor value less NBCU’s unpaid capital call contributions. During the initial phase of the appraisal process, Disney’s appraiser arrived at a valuation below the guaranteed floor value, while NBCU’s appraiser arrived at a valuation substantially in excess of the guaranteed floor value. The final equity fair value, which was completed on June 9, 2025, takes into account the valuation of a third appraiser, which if it had been equal to or below the guaranteed floor value would have resulted in no additional amount payable to NBCU and if it had been consistent with the NBCU’s appraiser’s valuation would have resulted in an additional amount of approximately $5B payable to NBCU as its share of the difference between the equity fair value and the guaranteed floor value. Pursuant to the contractual appraisal process that was completed on June 9, 2025, an additional $438.7M is payable by Disney to NBCU to purchase NBCU’s interest in Hulu. This amount will be recorded in “Net income attributable to noncontrolling interests” and thus reduce “Net income attributable to Disney” in our Condensed Consolidated Statements of Income for our fiscal third quarter. This amount is also expected to be excluded when Disney reports Adjusted EPS, the non-GAAP measure representing diluted earnings per share excluding certain items, and therefore is not expected to impact Disney’s previous guidance on fiscal 2025 Adjusted EPS. The acquisition of NBCU’s interest in Hulu will close on or before July 24, 2025.