Walt Disney DIS shares edged higher in after-hours trading after the media and entertainment giant unveiled plans to purchase and take complete control of the Hulu streaming platform.
Disney said it would buy the 33% stake in Hulu that it doesn't already own from Comcast CMCSA and will pay the group's NBCU division $8.61 billion by December 1 as part of a previously-agreed arrangement in 2019.
The purchase price pegs the so-called 'floor value' of Hulu at $27.5 billion.
"Under the appraisal process agreed to by Disney and Comcast, Hulu’s equity fair value will be assessed as of September 30, 2023, and if the value is ultimately determined to be greater than the guaranteed floor value, Disney will pay NBCU its percentage of the difference between the equity fair value and the guaranteed floor value," Disney said in a statement.
"While the timing of the appraisal process is uncertain, we anticipate it should be completed during the 2024 calendar year," the statement added.
Disney shares were marked 0.28% higher in after-hours trading immediately following news of the purchase to indicate a Thursday opening bell price of $81.20 each.
Related: Disney stock higher as billionaire Nelson Peltz adds firepower to board-seat battle
Earlier this week, the Wall Street Journal reported that billionaire activist investor Nelson Peltz has reached a deal with former Disney executive Isaac Perlmutter that gives Peltz's Trian Fund Management control and voting power over the former Marvel Entertainment chairman's stake.
Peltz, who has been pushing for a seat on the board since late last year, now has around four times the voting shares he had when he first pushed for a Disney board seat earlier this year, the Journal reported.
Peltz and Trian abandoned their proxy fight in February after Disney CEO Bob Iger said "everything’s on the table right now" with respect to the group's 66% stake in Hulu after Peltz said Disney should either buy the entire platform or exit streaming altogether.
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