Disney says it is taking full control of Hulu

The tug-of-war over Hulu is over.

The Walt Disney Company said Wednesday it would take full control of Hulu, one of the world’s most popular streaming services, by paying at least $8.61 billion to buy out Comcast, which owned a 33 percent stake. Comcast made the deal as part of a put-call agreement between the companies in 2019. The final price will be determined by an appraisal process that will continue next year.

Comcast, which recently stopped delivering shows like “Saturday Night Live” and “The Voice” to Hulu and diverted them to its Peacock streaming service, said in September that it had accelerated negotiations to sell Hulu to Disney. Previously, Comcast and Disney agreed that Comcast could force Disney to buy its stake (the “put”) early next year. At the same time, Disney had the option at that time to force Comcast to sell (the “call”).

“The acquisition of Comcast’s interest in Hulu at fair market value will advance Disney’s streaming objectives,” Disney said in a statement. Hulu, which has about 48 million subscribers, offers programming from ABC, FX, Fox and other traditional networks, along with original shows like “Only Murders in the Building” and “The Kardashians.”

As part of its push to make its flagship streaming service Disney+ profitable, Disney announced this year that content from Hulu on Disney+ would be made available to subscribers of both services in the United States. (Hulu doesn’t operate overseas, while Disney+ does.) Disney plans to roll out this “one app experience” by the end of the year. Hulu will also continue as a standalone product, charging $18 for ad-free access and $8 for an ad-supported option.

Founded in 2007, Hulu was for years the streaming equivalent of Frankenstein’s monster, an emerging startup backed by 21st Century Fox, NBCUniversal, Disney and Time Warner. They hoped that shared ownership of Hulu would make it the streaming equivalent of Switzerland, a common defense against the increasing power of the Internet, but it proved to be a hindrance. Disney gained control of Hulu after purchasing 21st Century Fox’s entertainment assets in 2019.

Like other major media companies, Disney has struggled to address investor concerns about the profitability of streaming and the demise of traditional television. Disney shares were trading at about $81, down from $197 two years ago.

In July, Disney announced it was exploring a once-unthinkable sale of a stake in ESPN, which has driven much of Disney’s growth over the past two decades. Disney is also selling shares in India and considering parting with assets such as ABC, the Freeform cable channel and a chain of local TV stations.

Benjamin Mullin reporting contributed.