The Walt Disney Company completed its acquisition of Hulu on Wednesday by announcing that it will purchase Comcast’s $8.6 billion ownership stake in the streaming service.
The acquisition, which comes as the firm looks to increase the number of subscribers at itsDisney+ streaming service, will “further Disney’s streaming objectives,” according to a press release from the company.
Disney estimates that Hulu’s overall worth is $27.5 billion, and the purchase is expected to close by December 1.
The massive entertainment company based in California already offers Hulu in packages together with its ESPN+ and Disney+ platforms.
In the US, a $15 monthly subscription to an ad-supported bundle of the three services costs $25 for an ad-free version.
Next week, the business will reveal its most recent quarterly profits, giving investors a peek at how its streaming and cable services are performing in the very competitive sector.
Disney said in August that the most recent quarter saw a loss of over 10 million Disney+ customers, primarily in the Indian market.
Disney+ reported that as of the end of the second quarter of this year, it had 146.1 million subscribers, down from just under 158 million in the previous quarter.
Disney rival Netflix last month said subscriber numbers grew nearly 11 percent to 247 million as it cracked down on password sharing and refined an ad-supported tier.
The leading streaming service increased prices on some of its plans, perhaps creating an opportunity for competitors such as Disney.
Netflix said in an earnings report that its nascent ad-supported offering was gaining traction, and the coming Disney earnings should provide insight into whether the same is true for its ad-supported tier.
Meanwhile, film and television makers see productions halted by an actors strike in the United States, meaning a potential lack of fresh content needed to attract and keep streaming subscribers.
On its website, Hulu states that it was initially formed in 2007 as a joint venture between News Corporation and NBC Universal, with Disney becoming a participant shortly after.
