Disney (DIS) said Wednesday that it will buy Comcast's (CMCSA) 33% stake in the streaming service Hulu.
Under the terms of the agreement, Disney expects to pay Comcast's NBCUniversal a minimum $8.61 billion by Dec. 1, representing the "floor" of what Comcast is owed for the streaming service.
The two companies will now enter negotiations to determine Hulu's full valuation.
Disney currently owns two-thirds of Hulu with Comcast’s Universal controlling the rest. At the time of the 2019 arrangement, Hulu was valued at a guaranteed minimum equity value of $27.5 billion (or about $9.2 billion for the 33% stake.)
Hulu boasts just over 48 million subscribers as of July and hosts top-rated shows including "Only Murders in the Building," "The Handmaids Tale," and "The Dropout."
Disney and Comcast shares were both little changed following the announcement.
Comcast reportedly weighed purchasing Disney's majority stake at one point but changed course due to content rights concerns, as a significant portion of Hulu's content is owned by Disney.
Disney CEO Bob Iger reversed his previous Hulu stance earlier this year, telling investors that general entertainment is a valued component of Disney's content strategy.
"I've now had another three months to really study this carefully and figure out what is the best path for us to grow this business," Iger said on the company's earnings call in May. "It's clear that a combination of the content that is on Disney+ with general entertainment is a very positive."
Disney will report quarterly earnings results on Nov. 8.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on Twitter @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com
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