Walt Disney will pay Comcast an additional $438.7 million to finalize its purchase of streaming service Hulu.
Taking full control of Hulu will lead to more gains for Walt Disney , according to Loop Capital. The investment firm raised its price target for the entertainment conglomerate to $130 from $125 per share, implying about 12% upside. Analyst Alan Gould kept his buy rating on shares as well. Gould's price target revision comes after Disney agreed to pay Comcast another $438.7 million to finalize its purchase of Hulu, concluding an appraisal process that has lasted since 2023.
DIS YTD mountain DIS YTD chart "The outcome provides clarity and allows Disney to fully integrate Hulu into both Disney+ and the upcoming ESPN streaming service. Based on our FY2025 estimates, the valuation implies approximately 3.3x revenue and just under less than $500 per subscriber for the Hulu SVOD service," Gould wrote. The transaction will likely close either on or before July 24. Disney shares ticked higher in the premarket following the price target increase.
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