AI English summary of an SEC filing — figures as filed
The Walt Disney Company DISThe company said NBCU exercised its put/call right to require Disney to buy NBCU's 33% interest in Hulu, LLC on November 1, 2023. The price is based on NBCU's equity ownership percentage applied to the greater of the equity fair value and the guaranteed floor value of $27.5 billion.
Key points
AI summaryThe company said NBCU exercised its put/call right to require Disney to buy NBCU's 33% interest in Hulu, LLC on November 1, 2023. The price is based on NBCU's equity ownership percentage applied to the greater of the equity fair value and the guaranteed floor value of $27.5 billion.
Disney paid NBCU about $8.6 billion in December December 2023, the company said, reflecting the guaranteed floor value less NBCU's unpaid capital call contributions. It said an additional $438.7 million is payable on June 9, 2025 following the completed appraisal process.
The company said that in the initial phase, Disney's appraiser valued Hulu below the guaranteed floor value, while NBCU's appraiser valued it well above the floor. It said that if the 3 appraiser had valued Hulu in line with NBCU's appraiser, an additional amount of about $5 billion would have been payable to NBCU.
The company said the amount will be recorded in Net income attributable to noncontrolling interests in fiscal Q3, reducing Net income attributable to Disney. It also said the amount is expected to be excluded from Adjusted EPS and therefore not to affect its prior fiscal-year Adjusted EPS guidance, and that the acquisition will close on or before July 24, 2025.
Summary
AI-writtenAnalysis scope · Filing bodyWe analyzed the filing body and confirmed exhibits. This is not a review of other exhibits, investor presentations or the full earnings call.
NBCU Exercises Hulu Stake Put Option and Guaranteed Floor Value
The company said NBCU exercised its put/call right to require Disney to buy NBCU's 33% interest in Hulu, LLC on November 1, 2023. The price is based on NBCU's equity ownership percentage applied to the greater of the equity fair value and the guaranteed floor value of $27.5 billion.
Source · Based on the filing body and exhibits
Payment in December 2023 and Additional Amount Payable After June 9, 2025 Appraisal
Disney paid NBCU about $8.6 billion in December December 2023, the company said, reflecting the guaranteed floor value less NBCU's unpaid capital call contributions. It said an additional $438.7 million is payable on June 9, 2025 following the completed appraisal process.
Source · Based on the filing body and exhibits
Appraisal gap and 3 appraiser in Hulu valuation process
The company said that in the initial phase, Disney's appraiser valued Hulu below the guaranteed floor value, while NBCU's appraiser valued it well above the floor. It said that if the 3 appraiser had valued Hulu in line with NBCU's appraiser, an additional amount of about $5 billion would have been payable to NBCU.
Source · Based on the filing body and exhibits
Accounting Treatment, Adjusted EPS Impact and Closing Deadline
The company said the amount will be recorded in Net income attributable to noncontrolling interests in fiscal Q3, reducing Net income attributable to Disney. It also said the amount is expected to be excluded from Adjusted EPS and therefore not to affect its prior fiscal-year Adjusted EPS guidance, and that the acquisition will close on or before July 24, 2025.
Source · Based on the filing body and exhibits
AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.
Original filing
The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.
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