Disney and Comcast still can’t agree on a fee for Hulu. In spite of Disney having already integrated Hulu content into the Disney+ app, the finer details on the sale of the remaining third have yet to be finalized.
Last year, and prior to Disney confirming that it would purchase Comcast’s third, it was reported that Comcast and Disney were bringing in their own investment banks to help determine the price. At the time, it was understood that, if the two valuations were within range, a final price could be agreed, based on the average of the two valuations.
That range was understood to be 10%, and according to Reuters, the two evaluations have not fallen within that range. JPMorgan’s valuation (on behalf of Disney) was close to the $27.5 billion floor valuation, according to the sources cited in the report. In contrast, Morgan Stanley’s valuation (on behalf of Comcast) was said to be north of $40 billion.
As a result, both Disney and Comcast are now reportedly looking to hire a third investment bank to provide an independent valuation of Hulu.
Depending on whether this third bank’s valuation is closer to the appraisal given on behalf of Disney or Comcast will now determine the final price. Basically, if the third valuation is closer to Disney’s, then the average of those two valuations will be the agreed price. Likewise, if the third appraisal is closer to Comcast’s, the average of the independent valuation and Comcast’s will be the final price.
Considering $27.5 billion is the floor valuation, this is the minimum price that can be agreed. If, for example, the independent valuation is lower than $27.5 billion, the price will be $27.5 billion. Once a final price is decided, Disney will then pay Comcast one-third of that amount.
Back in November, Disney confirmed it would pay a minimum of $8.6 billion for the remaining third of Hulu.
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