Disney has been controlling Hulu and announcing plans to do an app combining the service with Disney+. Walt Disney Company CEO Bob Iger has all but confirmed the buyout of Hulu. However, it seems that Disney doesn’t want to pay the asking price Comcast has set, and Comcast has stopped funding the streaming service. Now, the issue has entered arbitration.

According to The Wrap, Disney’s and Comcast’s prices are “tens of billions of dollars apart” for the valuation of Hulu. Disney claims that Comcast’s stake in Hulu is only worth $8.7 billion, while Comcast claims the valuation is closer to $27.5 billion.

When the deal was made in May of 2019, Disney was to buy out Comcast’s stake in Hulu at a minimum of $5.8 billion, with the valuation of Hulu set at a floor of $27.5 billion. NBCUniversal would have to keep its content on Hulu through the end of 2024. Disney could also require Comcast to buy their shares, but given that Iger has announced plans for Hulu as part of an app, they likely are keeping it.

Comcast CEO Brian Roberts feels that the valuation should be set at the rate Disney would list the service if they wanted to sell it to any other major media company. Then give Comcast 1/3 of that value.

It doesn’t seem that Brian Roberts feels Bob Iger is doing that.

If the floor valuation can go no lower than $27.5 billion, it puts the 33% Comcast owns at a base rate of $8.3 billion. The question is whether or not the streamer is worth far more. It is doubtful Comcast’s share would be $27.5 billion.

Hopefully, arbitration can finalize the situation so it’s fair for both parties. Of course, both sides want the best deal for themselves and their companies, but a compromise will have to be made.

What do you think? Comment and let us know!

Hat tip to Gina.