Disney is now the only one with its hands on Hulu’s steering wheel.

Disney and Comcast announced a deal under which Disney will assume full operational control of Hulu, effective immediately.

Under their pact, Comcast’s NBCUniversal will retain its 33% ownership interest in Hulu but as early as January 2024, Comcast can require Disney to buy NBCUniversal’s interest in Hulu. By the same token, Disney can require NBCUniversal to sell that interest to Disney for its fair market value at that future time.

Hulu’s fair market value will be assessed by independent experts but Disney has guaranteed a sale price for Comcast that represents a minimum total equity value of Hulu at that time of $27.5 billion.

Disney and Comcast have agreed to fund Hulu’s recent purchase of AT&T Inc.’s 9.5% interest in Hulu, pro rata to their current two-thirds/one-third ownership interests and, going forward, Comcast will have the option but not the obligation to fund its proportionate share of Hulu’s future capital calls and will be diluted if it elects not to fund. Disney has agreed that only $1.5 billion of any year’s capital calls can be funded through further equity investments with any capital in excess of that annual amount being funded by non-diluting debt.

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