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Disney buys Hulu for $5.8 billion

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Giant companies Disney and Comcast recently inked a $5.8 billion agreement, giving Disney full operational control over Comcast’s Hulu for the next five years.

Hulu is an American subscription video-on-demand (VOD), which allows users to select, watch, or listen to contents, may it be in video or audio. Viewers or listeners can stream content through a set-top box, computer or other devices or download through the Internet.

“We are now able to completely integrate Hulu into our direct-to-consumer business and leverage the full power of The Walt Disney Company’s brands and creative engines to make the service even more compelling and a greater value for consumers,” said Bob Iger, chairman and CEO of Disney.

Iger’s statement confirmed speculations that have been spreading since last month that the entertainment giant would acquire Hulu as the company sets to launch its services worldwide.

According to the deal, Comcast’s NBCUniversal will continue content licensing in Hulu until 2024. However, NBCUniversal will have the rights to pull out and cancel any licensing agreements on their discretion in 2022.

Comcast is the second-largest broadcasting and cable television conglomerate in the world in terms of revenue. It serves US residents and commercial establishments in 40 states and the District of Columbia.

“We are now able to completely integrate Hulu into our direct-to-consumer business and leverage the full power of The Walt Disney Company’s brands and creative engines to make the service even more compelling and a greater value for consumers,” Iger furthered.

The buyout will add more taste to the current roster of Disney which are ABC, Twentieth Century Fox, Fox Searchlight Pictures, Twentieth Century Fox Television, FX Networks, National Geographic Partners, Touchstone Pictures, Marvel, Lucasfilm and Pixar.

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