Hulu attracts big tech firms
04 Jul 2011
Bankers for the video-streaming service Hulu LLC are reported to have met with Google, Yahoo and Microsoft as the company explores a sale, according to people familiar with the process.
Reports say Morgan Stanley and Guggenheim Partners had reached out to 10 to 12 potential bidders, including AT&T Inc.
A sale could bring in $2 billion for Hulu's owners including Walt Disney Co, News Corp and Comcast Corp's NBC Universal. Hulu received an approach by a potential suitor, starting the process, people in the know of the matter said on 21 June.
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.
Lst month Reuters had reported that Hulu was weighing a sale option from a "serious" buyer, who had made an approach. 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.
Reports of the development have naturally led to intense speculation over the identity of the potential buyer that has made the approach. While Microsoft was seen as the hot candidate one day, the next day, it was Yahoo and now the Los Angeles Times is reporting that Google is the latest tech giant making overtures to the conglomerate.
According to analysts the search company would be interested in Hulu as its video service though quite popular, has not been much of a hit with content companies over the years. While Google has had a hard time making money from all the videos it streams, Hulu is expected to make $500 million this year from ads shown during its programming.
