Disney May Face $5 Billion Hike in Hulu Deal

Dispute with Comcast Over Valuation Continues

Walt Disney Company (DISN) announced on Wednesday that it may need to pay up to $5 billion more than initially agreed upon to acquire Comcast Corporation's (CMCSAO) minority stake in Hulu.

This potential increase stems from a disagreement in valuation between the two media giants. In November 2019, Disney entered into an agreement to gain full control of Hulu and pay Comcast at least $86 billion for its remaining 33% stake after the expiration of the latter's put option in 2024.

However, the two companies have been embroiled in a dispute ever since over the fair value of Hulu. Disney now suggests that an appraiser might side with Comcast's higher valuation, resulting in a potential $5 billion premium.

The ongoing battle over Hulu's worth underscores the complexities and challenges of media mergers and acquisitions. The outcome of this dispute will have significant implications for both Disney and Comcast, as well as the future of the streaming landscape.