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The Walt Disney Company and Comcast Seek Financial Advisor to Determine Hulu’s Value
The Walt Disney Company and Comcast are in the process of selecting an investment firm to assist them in evaluating the worth of Hulu, a popular streaming platform owned by Disney. This decision comes after financial institutions J.P. Morgan and Morgan Stanley provided vastly different valuations for Hulu, prompting the need for an independent assessment. Current reports from Reuters, citing unnamed sources familiar with the matter, indicate that deliberations are ongoing to find a financial advisor capable of accurately estimating Hulu’s value.
Background Information
Since the year 2019, Disney has been the predominant controller and operator of Hulu. In a significant development in 2023, Disney announced its plans to acquire the remaining stake in Hulu from Comcast in an $8.6 billion agreement. This deal granted Disney a noteworthy 33% ownership of the streaming service. Subsequently, in 2024, Disney incorporated Hulu into its subscription streaming service, Disney+, with the objective of expanding its audience base and enhancing viewership.
The decision to seek an independent financial advisor suggests a desire for a fair and accurate appraisal of Hulu’s value, especially considering the disparities in valuation provided by previous assessments. The partnership between Disney and Comcast indicates a collaborative effort to make informed and strategic decisions regarding the future of Hulu and its overall positioning within the streaming entertainment landscape.
It is essential for both companies to resolve the valuation of Hulu efficiently and transparently to ensure clarity and alignment in their strategic initiatives moving forward. The choice of a financial advisor with expertise in media valuation will be crucial in enabling Disney and Comcast to make well-informed decisions that align with their long-term business objectives.
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