The streaming wars have taken a new turn, with Disney and NBCUniversal locked in a battle over the valuation of Hulu. According to Deadline, Disney has already paid NBCUniversal a predetermined amount of $8.6 billion, but the disagreement lies in the additional sum. Both companies have engaged their respective financial advisors to determine the fair market value of Hulu. According to the filing detailing the agreement’s background, “in November 2023, NBCUniversal exercised its right to require Disney to purchase its 33% interest in Hulu at a redemption value based on NBCU’s equity ownership percentage of the greater of Hulu’s equity fair value or a guaranteed floor value of $27.5 billion.”
Both companies have engaged their respective financial advisors to determine the fair market value of Hulu. According to Deadline, the statement continues, “In December 2023, Disney is required to share with NBCU the difference between the equity fair and floor value.” It also goes on to include a statement from May 2024, which described that Disney and NBCU have entered into confidential arbitration in order to resolve the dispute revolving around the process, and the decision is expected to be reached during Disney’s fiscal year 2025, which begins on October 1.
According to Deadline, Disney has stated in the filing, “The outcome between the streaming platforms remains up in the air and unclear, as does the impact of the arbitration on the appraisal process and, thus, any impact on the determination of Hulu’s equity fair value and any additional amount we may be required to pay to acquire NBCU’s interest in Hulu.”
As the streaming landscape continues to evolve in the upcoming years, this high-stakes dispute highlights the challenges and complexities involved in valuing digital media assets. The outcome of this case could have significant implications for the future of Hulu and the connection between the two platforms, as well as for the impact it will have across the entertainment industry.