- Comcast will sell its stake in Hulu to Disney in five years, leaving Disney with full ownership of the streaming service.
- Comcast will immediately give up voting rights in Hulu.
- Disney has said it "will likely" bundle Disney Plus, Hulu, and ESPN Plus at a discount.
Comcast has agreed to sell its 33% stake in streaming service company Hulu to Disney and immediately give up voting rights, the two companies said Tuesday.
The agreement pledges the sale in the next five years at a Hulu valuation of at least $27.5 billion.
Hulu's ownership was previously fractured three ways: 60% Disney, 30% Comcast, and 10% AT&T. A month ago, AT&T sold off its stake for $1.43 billion. Tuesday's agreement will give Disney full ownership of Hulu.
Comcast's NBCUniversal plans to launch its own streaming service in early 2020. But as part of the deal, Comcast agreed to extend the Hulu license of its NBCUniversal content and the Hulu Live carriage agreement for NBCUniversal channels until late 2024. It will also distribute Hulu on its Xfinity X1 platform.
Hulu's streaming service had strong growth in 2018, adding 8 million customers for a total of 25 million subscribers. The subscription VOD service offers ad-supported and ad-free tiers and live television through its vMVPD offering.
"We are now able to completely integrate Hulu into our direct-to-consumer business and leverage the full power of The Walt Disney Company's brands and creative engines to make the service even more compelling and a greater value for consumers," Disney CEO Bob Iger said in a statement.
Disney previously said it "will likely" bundle its forthcoming Disney Plus, Hulu, and ESPN Plus for a discount.