Disney and Comcast, two media giants, are currently at odds over the valuation of Hulu, a popular streaming platform, which could potentially lead to a legal battle. The negotiations between the two companies have hit a standstill, with the main point of contention revolving around the value of Hulu.

The discussions primarily focus on Disney’s interest in acquiring Comcast’s remaining 33% stake in Hulu, which would give Disney full control over the platform. This move aligns with Disney’s overarching strategy of consolidating its streaming services under the Disney+ brand.

However, the disagreement between Disney and Comcast regarding the valuation of Hulu is significant. While specific figures have not been disclosed publicly, reports indicate a substantial gap in their respective assessments. Both parties have enlisted the help of banks to determine Hulu’s total value. Comcast values Hulu at over $40 billion, whereas Disney’s estimation is around $27.5 billion, a figure that was established in a previous agreement between the two companies.

This disparity in valuation could potentially derail the negotiations and push Disney and Comcast towards a legal dispute to settle on a fair price for Hulu. With over 50 million subscribers, Hulu is a valuable asset in the competitive streaming landscape, offering a diverse range of content.

Comcast, on the other hand, is focusing on its own streaming service, Peacock, which had 34 million subscribers as of the March quarter. Both companies are under pressure to find a resolution to avoid a costly and time-consuming court battle. The outcome of the negotiations, whether they manage to bridge the valuation gap and come to an agreement or if legal action becomes necessary, remains uncertain.