Disney and Comcast Agree to a Plan For The Sale of Hulu





Disney and Comcast have spent the last few months going back and forth over the valuation of Hulu. Now, the two sides have agreed to a plan on how they will finally come up with a price for Hulu.

In an SEC filing today, Disney disclosed that the companies will both hire outside investment banking firms to come up with a sale price. Those two firms’ valuation will be used to set the final sale price for Disney to buy Comcast’s share of Hulu.

If the two valuations are not within 10% of each other, the two firms will then select a third firm to come up its own figure. The ultimate sale price will come from the average of the two estimates that are closest in value to each other.

Here is how Disney says the firms will come up with a price:

The appraisers shall take into account factors they determine relevant to valuation and certain specific factors, including, among others, 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.

This comes as Disney and Comcast have agreed to move up talks to later this month to help speed up the process of Hulu’s sale. Goldman Sachs is involved with the appraisal process, which Roberts says will take time to reach a deal. Disney and Comcast amended their deal so either can force the other to accept a deal by November, with the appraisal set for September 30.

The companies set a valuation of $27.5 billion five years ago. But Comcast CEO Brain Roberts, who spoke on Wednesday at the Goldman Sachs Communacopia + Technology investor conference, said Hulu is “way more valuable” now compared to then. Comcast is hoping for as high a valuation as possible, even as Disney hopes it’ll be closer to the $27.5 billion mark.

The final details of Hulu’s sale are far from a done deal but there’s a clear path to figure out the valuation.

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