Agreement Between NBCU, Disney Regarding The Put/Call Arrangement For Hulu Has Been Amended, Giving NBCU The Option To Require Disney To Purchase Its Interest In Hulu At Redemption Value Based On Ownership Percentage Or A Guaranteed Floor Value Of $27.5B
Portfolio Pulse from Benzinga Newsdesk
NBC Universal (NBCU) and The Walt Disney Company (Disney) have amended their agreement regarding Hulu, giving NBCU the option to require Disney to purchase its interest in Hulu at a redemption value based on ownership percentage or a guaranteed floor value of $27.5 billion. The put/call arrangement can be exercised in November 2023, with Hulu's equity fair value assessed as of September 30, 2023. If the parties cannot agree on the equity fair value, investment banking firms will be appointed to determine the value.
September 08, 2023 | 10:57 pm
News sentiment analysis
Sort by:
Descending
NEUTRAL IMPACT
Comcast Corporation, as the parent company of NBCU, may see financial changes depending on the outcome of the Hulu agreement amendment.
As the parent company of NBCU, Comcast Corporation may see financial changes depending on whether NBCU exercises its option to require Disney to purchase its interest in Hulu and the final agreed value of Hulu's equity.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Disney may be required to purchase NBCU's interest in Hulu, potentially impacting its financial position.
The amendment gives NBCU the option to require Disney to purchase its interest in Hulu. This could potentially impact Disney's financial position, depending on the final agreed value of Hulu's equity.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80