Disney is set to take over Comcast’s stake in Hulu in five years.
According to a press release, Comcast would sell its holding in the video streaming company at a total valuation of either $27.5 billion, or at whatever value Hulu is assessed to be worth in five years. Disney has promised to pay a minimum amount of $27.5 billion for the equity stake.
Comcast and Disney have also agreed to fund Hulu's repurchase AT&T's 9.5% stake in the company. Disney and Comcast will share the funding in a two-thirds/one-third ratio.
There are around 26.8 million paid subscribers (in addition to 1.3 million on a free-trial basis) on Hulu, having increased from around 25 million last year.
Disney is also set to launch its own video streaming platform Disney+ this year. It seems competition could potentially heat up for early entrants like Netflix.