Walt Disney Co. ( DIS ) shares are trading higher Tuesday after the company announced it will pay Comcast $438.7 million to acquire the company’s 33% stake in Hulu.

What To Know: Disney ( DIS ) will take full control of streaming service Hulu, ending a multi-year valuation dispute. Disney ( DIS ) acquired majority control of Hulu through its 2019 deal with Fox Corp. In 2023, the company announced plans to buy the remaining 33% from Comcast.

Disney ( DIS ) said in a regulatory filing that the two companies agreed to an initial minimum price of $8.6 billion, which Disney ( DIS ) paid for Comcast's stake in 2023. The companies then entered into an appraisal process to determine the final price, but differing views on Hulu's valuation led to a drawn-out appraisal process.

“During the initial phase of the appraisal process, Disney's ( DIS ) appraiser arrived at a valuation below the guaranteed floor value, while NBCU's appraiser arrived at a valuation substantially in excess of the guaranteed floor value,” Disney ( DIS ) said in the filing.

The final equity value, which was completed on June 9, took into account a valuation from a third appraiser. Disney ( DIS ) said that if the valuation had been consistent with the Comcast appraiser’s value, Disney ( DIS ) would have owed an additional $5 billion. Instead, it was determined that Disney ( DIS ) owed approximately $439 million, which is being viewed as a win for the entertainment giant.

"We are pleased this is finally resolved. We have had a productive partnership with NBCUniversal, and we wish them the best of luck. Completing the Hulu acquisition paves the way for a deeper and more seamless integration of Hulu's general entertainment content with Disney+ and, soon, with ESPN's ( DIS ) direct-to-consumer product, providing an unrivaled value proposition for consumers,” said Bob Iger, CEO of Disney ( DIS ).

The acquisition of the remaining 33% stake in Hulu is expected to close by July 24, giving Disney ( DIS ) full control of Hulu's operations and content. Hulu has about 54.7 million subscribers, according to Disney’s latest earnings report.

Loop Capital analyst Alan Gould maintained Disney ( DIS ) with a Buy rating on Tuesday and raised the price target from $125 to $130.

DIS Price Action: Disney ( DIS ) shares were up 2.66% at $118.78 at the time of writing, according to Benzinga Pro.

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