Disney and NBCUniversal Clash Over Hulu Valuation with $5 Billion on the Line

A confidential arbitration process will determine if Disney owes an additional $5 billion for NBCUniversal's 33% stake in Hulu.

Disney initially paid $8.6 billion for NBCUniversal's Hulu stake, with a guaranteed floor value of $27.5 billion.
Both companies' appraisers have significantly different valuations for Hulu, prompting arbitration.
The arbitration decision, expected in fiscal 2025, will finalize the amount Disney must pay, ranging from zero to $5 billion.
Disney's recent SEC filing highlighted the uncertainty of the arbitration outcome and its potential financial impact.
Hulu's subscriber base grew to 51.1 million in Q3 2024, contributing to Disney's first combined streaming profit.