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Hulu: Nine Billion Dollars for the Last ThirdNarrow moat

Walt Disney (DIS) — moat facet

Disney paid about $9 billion for the last third of Hulu and now owns all of it; the value lies in folding Hulu into one Disney+ service.

Hulu took Disney three steps to own outright. Disney held 30%, rose to 60% when Fox's stake came with TFCF in March 2019, and reached 67% in May 2019, with NBCUniversal holding the other 33%1. In December 2023 Disney paid NBCU $8.6 billion, and after an appraisal it paid an incremental $0.4 billion in fiscal 2025, "giving the Company 100 % ownership of Hulu"2.

Disney ownership of HuluBefore 201930%March 201960% with theFox stakeMay 201967%; NBCU 33%December2023$8.6bn paidto NBCUFiscal 2025$0.4bn afterappraisal; 100%Walt Disney Forms 10-K FY2019 and FY2025
Three steps and about nine billion dollars to own it all.

The price was set by a floor. The agreement valued Hulu at "fair value or a guaranteed floor value of $ 27.5 billion"3, and Disney also pays NBCU 50% of the future tax benefits from amortizing the purchase4. So Disney is still sharing part of what it bought.

Ownership has changed what Hulu is. Outside the United States, Disney+'s Star tile was rebranded as Hulu in October 20255. In the United States, Hulu subscribers can now link profiles and watch history with Disney+, a step Disney called "an important milestone in app unification"6. Hulu's Live TV business was combined with Fubo in October 20257.

The tax side was large. In the third quarter of fiscal 2025 Disney recognised "a $3,277 million non-cash tax benefit" when Hulu's United States income tax classification changed8, which is why reported earnings for fiscal 2025 look so much better than the business.

Hulu's subscription business grew strongly in its last reported year. Hulu's subscription-only service had 59.7 million subscribers at 27 September 2025, against 47.4 million a year earlier, while Live TV plus subscription fell to 4.4 million from 4.6 million9. The streaming half grew; the cable-like half shrank and has since been merged into Fubo.

Hulu at 100% is now an asset for Disney to fold into one service. Two more years with Hulu kept as a separate brand and app at home would show the integration benefit that justified paying $9 billion for the last third is slow to arrive.

Moat trajectory: Widening

Hulu and Disney+ profiles linked in Q3 FY2026; Star rebranded Hulu abroad.

The number that tests this moat
Reported
Entertainment SVOD revenue growth, latest quarter
+11% (Q3 FY2026: $5,532M against $4,972M)

Disney+ and Hulu together after the integration; growth below 5% would mean the combined service has stopped adding value.

Source: Walt Disney Q3 FY2026 earnings release ↗
⚠ Threats to the moat
⚠ THREAT 01
Paying NBCU Half the Tax Savings
Disney paid about $9 billion for the last third of Hulu, against a $27.5 billion floor, and still owes NBCU half the tax savings.
References
  1. ReportedDisney held 30%, rose to 60% when Fox's stake came with TFCF in March 2019, and reached 67% in May 2019, with NBCUniversal holding the other 33%.
    The Walt Disney Company Form 10-K for fiscal 2019 - the acquisition of TFCF (Twenty-First Century Fox) on 20 March 2019 for $69.5 billion ($35.7 billion cash, $33.8 billion in 307 million shares at $110.00), the businesses acquired, goodwill of $49,085 million and the Hulu ownership steps. — FY2019 · publ. November 2019 · source ↗
  2. ReportedIn December 2023 Disney paid NBCU $8.6 billion, and after an appraisal it paid an incremental $0.4 billion in fiscal 2025, "giving the Company 100 % ownership of Hulu".
    The Walt Disney Company Form 10-K for fiscal 2025 (year ended 27 September 2025) - capital structure: goodwill, borrowings, credit ratings, dividends, share repurchases and the Hulu purchase. — FY2025 · publ. 13 November 2025 · source ↗
  3. ReportedThe agreement valued Hulu at "fair value or a guaranteed floor value of $ 27.5 billion", and Disney also pays NBCU 50% of the future tax benefits from amortizing the purchase.
    The Walt Disney Company Form 10-K for fiscal 2025 (year ended 27 September 2025) - capital structure: goodwill, borrowings, credit ratings, dividends, share repurchases and the Hulu purchase. — FY2025 · publ. 13 November 2025 · source ↗
  4. ReportedThe agreement valued Hulu at "fair value or a guaranteed floor value of $ 27.5 billion", and Disney also pays NBCU 50% of the future tax benefits from amortizing the purchase.
    The Walt Disney Company Form 10-K for fiscal 2025 (year ended 27 September 2025) - capital structure: goodwill, borrowings, credit ratings, dividends, share repurchases and the Hulu purchase. — FY2025 · publ. 13 November 2025 · source ↗
  5. ReportedOutside the United States, Disney+'s Star tile was rebranded as Hulu in October 2025.
    The Walt Disney Company Form 10-K for fiscal 2025 (year ended 27 September 2025) - capital structure: goodwill, borrowings, credit ratings, dividends, share repurchases and the Hulu purchase. — FY2025 · publ. 13 November 2025 · source ↗
  6. ReportedIn the United States, Hulu subscribers can now link profiles and watch history with Disney+, a step Disney called "an important milestone in app unification".
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - the supplemental SVOD detail, Disney+ and Hulu, churn and the membership plan. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  7. ReportedHulu's Live TV business was combined with Fubo in October 2025.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - the supplemental SVOD detail, Disney+ and Hulu, churn and the membership plan. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  8. ReportedIn the third quarter of fiscal 2025 Disney recognised "a $3,277 million non-cash tax benefit" when Hulu's United States income tax classification changed, which is why reported earnings for fiscal 2025 look so much better than the business.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - income statement, adjusted EPS, cash flow and balance sheet. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  9. ReportedHulu's subscription-only service had 59.7 million subscribers at 27 September 2025, against 47.4 million a year earlier, while Live TV plus subscription fell to 4.4 million from 4.6 million.
    The Walt Disney Company Form 10-K for fiscal 2025 (year ended 27 September 2025) - capital structure: goodwill, borrowings, credit ratings, dividends, share repurchases and the Hulu purchase. — FY2025 · publ. 13 November 2025 · source ↗
Sources
Generated October 5, 2026