Kimberly White/Getty; Chip Somodevilla/Getty; Shayanne Gal/Business Insider
Comcast CEO Brian Roberts (L) and Disney CEO Bob Iger (R).
- Comcast will sell its stake in Hulu to Disney in five years for at least $27.5 billion, 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 for a minimum value of $27.5 billion.
The transaction will give Disney full ownership of Hulu.
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.
Disney has said it "will likely" bundle Disney Plus, Hulu, and ESPN Plus for a discount.