Online video Hulu weighing sale option: sources
23 Jun 2011
Online video site Hulu has been weighing an approach from a potential buyer and is reportedly considering a sell off, reports Reuters citing an unnamed person close to the matter.
The site is best known for free online access to popular TV shows from its strategic owners, but, in July last, it launched a paid subscription service as a way to expand its offerings to include TV shows from other programming partners like Viacom.
The approach represents another decision point for the jointly held company, which is has not been able to arrive at a clear strategy and spent six months on planning an initial public offering before it finally dropped the plan.
Following the approach, the Hulu board is said to be keen on engaging the baking community to help handle the approach from the "serious" buyer as also other potential offers, the source said.
News Corp, Walt Disney Co, NBC Universal and private equity firm Providence Equity Partners are joint owners of the site.
The acquisition approach has not come from any of the current equity holders, the source said, adding that the buyer was expected to be either a strategic buyer or private equity. However, no decision had been taken as yet on whether the board was prepared to sell the company or not.
Though Hulu has gained immense popularity, its owners are under increasing pressure from their cable and satellite distribution partners reluctant to pay premium dollars to carry content that is being offered for free on the web.
Further, many programme makers have been reluctant to put their shows up on a free site with an advertising model that has not yet proved itself with premium video.
