Disney, Comcast Seek Advisor To Figure Out How Much Hulu Is Really Worth: Report
Portfolio Pulse from Ananya Gairola
Disney (NYSE:DIS) and Comcast (NASDAQ:CMCSA) are seeking a financial advisor to resolve a valuation dispute over Disney's 33% stake in Hulu. The disagreement stems from differing valuations by JPMorgan Chase and Morgan Stanley, with estimates at approximately $27.5 billion and over $40 billion, respectively. This step follows a 2019 deal after Disney's acquisition of 21st Century Fox's assets, giving Disney majority control over Hulu. The resolution of this dispute is crucial for finalizing Disney's acquisition of Comcast's stake in Hulu, announced in November 2023.
May 07, 2024 | 2:48 am
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NEUTRAL IMPACT
Comcast's stake in Hulu and the outcome of the valuation dispute with Disney could influence its stock price, especially if the final valuation significantly differs from initial estimates.
Comcast's financial interest in Hulu and the ongoing valuation dispute with Disney are key factors that could affect its stock price in the short term. The final valuation and acquisition terms by Disney will determine the financial benefit to Comcast, influencing investor sentiment and potentially the stock price. The uncertainty of the outcome makes the short-term impact neutral until more details emerge.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Disney's ongoing dispute with Comcast over Hulu's valuation could impact its stock price, depending on the outcome of the independent valuation and the final acquisition cost.
The resolution of the valuation dispute is crucial for Disney as it impacts the final acquisition cost of Comcast's Hulu stake. A higher valuation could mean a higher payout for Disney, potentially affecting its financials and investor sentiment. However, the exact impact on the stock price will depend on the final valuation and market perception of the deal's fairness and strategic value.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90