The Walt Disney Company and Comcast Announce Agreement on Hulu’s Future Governance and Ownership

BURBANK, Calif. & PHILADELPHIA–(BUSINESS WIRE)–The Walt Disney Company (NYSE: DIS) and Comcast Corporation (NASDAQ:
CMCSA) announced today that Disney will assume full operational control
of Hulu, effective immediately, in return for Disney and Comcast
entering into a “put/call” agreement regarding NBCUniversal’s 33%
ownership interest in Hulu. Under the put/call agreement, as early as
January 2024, Comcast can require Disney to buy NBCUniversal’s interest
in Hulu and Disney can require NBCUniversal to sell that interest to
Disney for its fair market value at that future time. Hulu’s fair market
value will be assessed by independent experts but Disney has guaranteed
a sale price for Comcast that represents a minimum total equity value of
Hulu at that time of $27.5 billion.

Disney and Comcast have agreed to fund Hulu’s recent purchase of AT&T
Inc.’s 9.5% interest in Hulu, pro rata to their current two thirds/one
third ownership interests and, going forward, Comcast will have the
option but not the obligation to fund its proportionate share of Hulu’s
future capital calls and will be diluted if it elects not to fund.
Disney has agreed that only $1.5 billion of any year’s capital calls can
be funded through further equity investments with any capital in excess
of that annual amount being funded by non-diluting debt. Whether Comcast
funds its share of those equity capital calls or not, Disney has agreed
that Comcast’s ownership interest in Hulu will never be less than 21%
such that Comcast is guaranteed to receive at least $5.8 billion under
the put/call agreement.

In addition to the put/call agreement, Comcast has agreed with Hulu to
extend the Hulu license of NBCUniversal content and the Hulu Live
carriage agreement for NBCUniversal channels until late 2024 and to
distribute Hulu on its Xfinity X1 platform. NBCUniversal can terminate
most of its content license agreements with Hulu in three years’ time,
and in one year’s time NBCUniversal will have the right to exhibit on
its own OTT service certain content that it currently licenses
exclusively to Hulu in return for reducing the license fee payable by

About The Walt Disney Company:

Disney, together with its subsidiaries, is a diversified worldwide
entertainment company with operations in four business segments: Media
Networks; Parks, Experiences and Products; Studio Entertainment; and
Direct-to-Consumer and International. Disney is a Dow 30 company and had
annual revenues of $59.4 billion in its Fiscal Year 2018. For more
information about Disney, please visit

About Comcast Corporation:

Comcast Corporation is a global media and technology company with three
primary businesses: Comcast Cable, NBCUniversal, and Sky. Comcast
Cable is one of the United States’ largest high-speed internet, video,
and phone providers to residential customers under the Xfinity brand,
and also provides these services to businesses. It also provides
wireless and security and automation services to residential customers
under the Xfinity brand. NBCUniversal is global and operates news,
entertainment and sports cable networks, the NBC and Telemundo broadcast
networks, television production operations, television station
groups, Universal Pictures, and Universal Parks and Resorts. Sky is one
of Europe’s leading media and entertainment companies, connecting
customers to a broad range of video content through its pay television
services. It also provides communications services, including
residential high-speed internet, phone, and wireless services. Sky
operates the Sky News broadcast network and sports and entertainment
networks, produces original content, and has exclusive content rights.
Visit for
more information.

About Hulu:

Hulu is the leading premium streaming service offering live and
on-demand TV and movies, with and without commercials, both in and
outside the home. Launched in 2008, Hulu has grown to more than 28
million customers in the U.S. and is the only service that gives viewers
instant access to current shows from every major U.S. broadcast network;
libraries of hit TV series and films; and acclaimed Hulu Originals like
Emmy® and Golden Globe Award-winning series The Handmaid’s Tale, Emmy®
Award-nominated The Looming Tower, Shrill, The Act, Marvel’s Runaways
and Castle Rock,
and Oscar®-nominated documentary film Minding
the Gap
, as well as live news, entertainment and sports from 21st
Century Fox, The Walt Disney Company, NBCUniversal, CBS Corporation, The
CW, Turner Networks, A+E Networks and Discovery Networks – all in one
place. Upcoming Hulu Originals include Catch-22 from George
Clooney; Four Weddings and a Funeral from Mindy Kaling;
Wu-Tang: An American Saga
from Brian Grazer and The RZA; and
Little Fires Everywhere
from Reese Witherspoon and Kerry Washington.

Forward Looking Statements:

Certain statements in this press release may constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements may include
expectations regarding our business plans, products, expectations
regarding growth and performance, and other statements. Forward-looking
statements herein may contain words such as “will,” “may,” “expect,”
“believe,” similar expressions, and variations or negatives of these
words. These statements are made on the basis of management’s views and
assumptions regarding future events and business performance as of the
time the statements are made. Management does not undertake any
obligation to update these statements. Actual events may differ
materially from those expressed or implied. Such differences may result
from actions taken by the Company, as well as from developments beyond
the Company’s control, including changes in competitive conditions;
consumer preferences; international, political, regulatory, health
concern and military developments; and changes in domestic and global
economic conditions that may affect our businesses generally. Additional
factors are set forth in the Company’s Annual Report on Form 10-K for
the year ended September 29, 2018 under Item 1A, “Risk Factors,” and
subsequent reports.


The Walt Disney Company
Media Contacts:
Zenia Mucha
(818) 560-4832
(818) 560-4057
Lowell Singer
(818) 560-6601

Media Contact:
Hilary Smith

Comcast Corporation
Media Contact:
John Demming
Jason Armstrong
(215) 286-7972

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