In 2019, the two media conglomerates signed an agreement where Disney was supposed to acquire Comcast’s one-third stake in Hulu for a minimum of around $9 billion. However, the agreement did not preclude the two companies from negotiating a side deal.
Further options for negotiation developed in February, when Disney CEO Bob Iger noted he may not want Hulu.
The talks between Comcast and Disney included the possibility that the Philadelphia company could buy Hulu or that the two companies could exchange their rights to reduce Disney’s bill.
However, no deal was struck as they failed to agree on much of anything including the value of the streaming service and the value of the different programming rights it owns.
Both sides ended the talks convinced there was no deal to be had. The next step is arbitration, and this could be contentious.
Disney will push for the lowest valuation possible of Hulu, just under $30 billion, while Comcast believes Hulu could be worth double that.
The issue should be resolved by the second half of 2024.
Read more about Comcast in Bloomberg.