Disney will pay billions to take full control of Hulu as part of its streaming push

• Disney has offered Comcast $8.6 billion to take full control of Hulu.
• The deal is part of CEO Bob Iger's strategy to reshape the company by focusing on streaming.

Disney has offered to pay $8.6 billion to take full control of Hulu from Comcast, which holds a 33% stake in the streaming platform.

The company said the deal would "further Disney's streaming objectives," as CEO Bob Iger implements his plans to focus on streaming over other parts of the business.

Disney regards Hulu as a crucial part of its push to reach wider audiences, The Wall Street Journal reported. "Maintaining access to our content for as broad an audience as possible is top-of-mind for us," Iger said in August.

Disney is exercising an option to buy Comcast's stake that expires in January.

Disney and Comcast agreed in 2019 that Hulu, which is known for dramas including "The Handmaid's Tale" and "The Bear," was worth at least $27.5 billion. Disney has about $8.6 billion due to payments owed by Comcast, although negotiations to determine the exact price will now commence.

Hulu has about 48 million subscribers compared with almost 162 million for Disney+, per Forbes, but is one of the few profitable streaming platforms, alongside Netflix. Hulu is already offered by Disney in a bundle with its Disney+ and ESPN+ streaming services.

The deal has been a long time coming and is part of Iger's attempts to reshape the struggling entertainment giant.

Although the company delivered better than expected numbers in its most recent quarterly results, it's cut more than 7,000 jobs in the past year. Its stock is also down by a fifth over the past 12 months.

Disney may also sell the ABC broadcast network and as part of cost-cutting strategies, marking another sign that it Disney is putting its future hopes on streaming.

In its August quarterly report, Disney announced it was on track to exceed its initial goal of $5.5 billion dollars in savings.

"Maintaining access to our content for as broad an audience as possible is top-of-mind for us," Iger said in an earnings call, per Fortune.

Disney did not immediately reply to Insider's request for comment.