Skip to content
AnalystLens

COMCAST CORP 8-K Report, Corporate Update (May 14, 2019)

Reports
Other Events·Exhibits & Filings
Filing Date
Filed May 14, 2019
Period End
May 14, 2019
Securities
CMCSACCZ
In the record · 2016–202610-K1110-Q328-K167

CMCSA filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 167 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · May ’16May ’16
  2. Material agreement8-K · Apr ’18Apr ’18
  3. Material agreement8-K · Mar ’21Mar ’21
  4. Leadership change8-K · Feb ’26Feb ’26

01—Abstract

Summary

Summary of the 8-K filed May 14, 2019. Cited figures are marked; the original filing is the authoritative source.

Comcast Corporation (CMCSA) announced a significant shift in its relationship with Hulu, LLC, transferring operational control of the streaming service to The Walt Disney Company, effective immediately.

This move is part of a broader agreement that outlines a future put/call arrangement for Comcast's 33% stake in Hulu. As early as January 2024, either Disney can compel Comcast to sell its stake, or Comcast can compel Disney to buy it, at fair market value. This valuation will be determined by independent experts but will have a minimum floor of $27.5 billiona for Hulu's total equity value.

02—Key points

Key Highlights

  1. Disney assumes operational control of Hulu.
  2. A put/call option is established for Comcast's 33% stake in Hulu, exercisable from January 2024.
  3. Comcast's 33% stake in Hulu will be valued at fair market value, with a minimum total equity floor of $27.5 billion.
  4. Comcast and Disney will jointly fund Hulu's recent acquisition of AT&T's 9.5% stake pro rata.
  5. Comcast's future funding of Hulu capital calls is subject to dilution, with a 21% ownership floor.
  6. Hulu's capital calls will be capped at $1.5 billion per year.
  7. The Hulu+ license for NBCUniversal content is extended until late 2024.

03—Questions

Frequently Asked Questions

  1. What is the main change regarding Comcast's involvement with Hulu?

    Comcast has transferred operational control of Hulu to The Walt Disney Company, while retaining a 33% ownership stake. This change is effective immediately.

  2. What is the put/call arrangement for Comcast's Hulu stake?

    Starting in January 2024, either Disney can force Comcast to sell its 33% stake, or Comcast can force Disney to buy it. The price will be the fair market value at that time, with a minimum total equity valuation for Hulu set at $27.5 billion.

  3. How will Hulu's recent acquisition of AT&T's stake be funded?

    Comcast and Disney will fund this acquisition proportionally based on their current ownership interests (two-thirds for Disney and one-third for Comcast).

  4. What are the implications for Comcast's future ownership percentage in Hulu?

    Comcast has the option to fund its share of future capital calls. If it chooses not to fund, its ownership percentage may be diluted, but it is protected by a floor of 21% ownership.

04—Continue

← View all 8-K filings