Disney buys all of Hulu, vows to keep linear TV in the mix

Disney now fully owns Hulu after paying Comcast an additional $439 million, ending a years-long valuation saga and signaling a commitment to integrate streaming with its traditional TV networks, unlike some competitors.

The final payment, set to close by July 24, adds to the $8.6 billion Disney previously paid Comcast in November 2023 for its remaining 33% stake. This was based on a $27.5 billion minimum Hulu valuation established in 2019, though a recent appraisal process, involving a third party, settled the final figure below Comcast’s reported target of an extra $5 billion, according to Disney’s SEC filing.

Iger’s gambit: Disney CEO Bob Iger, speaking on CNBC, emphasized that retaining and integrating linear channels like ABC and ESPN with streaming services like Disney+ and Hulu gives Disney a “stronger hand” as others exit that space. He believes this approach allows for aggregated revenue and economies of scale, turning the streaming business from “a huge loss to profitability.”

Metric shift ahead?: Looking to the future, Iger suggested Disney might follow Netflix’s lead and stop reporting quarterly subscriber numbers. “We’re focused on EBITDA and cash flow and growing margins,” he said, hinting that “the bottom line” will become the primary disclosure.

The bottom line: Disney is doubling down on a combined linear and streaming strategy, betting that integrated operations will provide a competitive edge and financial strength, even as it plans to tighten Hulu’s integration and potentially obscure traditional streaming growth metrics.

In other media moves: Warner Bros. Discovery is reportedly moving to split its studios and streaming from its TV networks, while Comcast is spinning out most of its cable channels into a new company called Versant. This contrasts with Bob Iger’s earlier musings that Disney’s linear assets “may not be core,” showing a renewed commitment to the integrated model. Meanwhile, Comcast’s Q1 2025 earnings show its focus on building up Peacock post-Hulu.