I know they're only buying out 1/3, but since they're just going to roll it into the existing infrastructure, they're essentially spending $9 billion to shut it down.
I still don’t see it as overspending as it’s gaining a piece not already under Disney ownership.
www.hollywoodreporter.com
www.cnbc.com
Disagree.
Time will tell.
More details on how the value of Hulu will be assessed.
"On Sept. 6, Comcast and Disney amended their previous deal, which would have activated the put/call options in Jan. 2024. The new agreement moves the options up to Nov. 2023, with the value of Hulu assessed as of Sept. 30.
An SEC filing from Disney on Friday afternoon outlines exactly how the companies plan to value Hulu. It’s a touchy subject, with Disney almost certainly hoping for a value as close to the $27.5 billion floor as possible (if not below it), and Comcast hoping for a number as high as possible.
According to the filing, if Disney and Comcast can’t reach a mutual agreement on the value, each company will hire an investment bank to examine Hulu’s books and come up with a valuation.
“If the two determinations are not within ten percent (10%) of each other, then the two investment banking firms select a third firm to make a third determination, in which case the equity fair value shall be the average of the two determinations that are closest in value to each other,” the filing continues.
Those investment bank appraisers will base their valuations on “Hulu’s historical financial and operating results, which shall be based solely on audited financial statements; that Hulu is valued as a going concern, carrying on its existing business activities; and Hulu’s future business prospects and projected financial and operating results, assuming that the assets, contract rights and intellectual property used in Hulu’s business that are provided by Disney will be continued and available to Hulu in a manner and on terms consistent with past practice.”
In other words, it will be numbers-based, with a bit of guesswork based on future projections and IP potential."
What Happens If Disney Can’t Agree With Comcast on a Price Tag for Hulu
A securities filing Friday lays out the process by which the companies will determine a value for the streaming service.
One thing to note, by the end of this year Hulu subs (LiveTv will still be counted separately) will end up probably being counting toward the total D+ subs when the services combine. So that puts subs for D+ and Hulu combined at 190.1M as of Q3FY23, with 4.3M for LiveTv. And LiveTv just saw a 60% increase in subs due to the Charter dispute.Reading the excellent CNBC article on Bob Vs. Bob, this info stood out regarding a late 2022 corporate discussion...
"As long as the streaming service was on pace to meet its goal of 215 million to 245 million subscribers by the end of 2024, Chapek believed, the company was in good shape."
And yet here's what subscribers counts look like 9 months later...
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The CNBC article is excellent, and touches on a lot of the topics we discuss in this little corner of our community. Much of the info is not new to us here, but it's interesting to have it confirmed by reputable sources that CNBC spoke with. A good afternoon read sometime this weekend when you have 10 minutes...
Disney's wildest ride: Iger, Chapek and the making of an epic succession mess
Here's the inside story of the executive chaos at Disney over the past few years — and how it could shape the fate of the iconic entertainment company.
variety.com
But those projections were just for D+. Not D+ and Hulu.
Yes, but once the services combine at the end of the year they are counted toward the total sub numbers. Just like how D+ HotStar are counted toward the total sub numbers.
Could be
