Hulu for sale…?
Thursday, June 23rd, 2011
Online streaming service Hulu hit the headlines twice this week when they announced that, firstly, when an as-yet unnamed company made an unsolicited enquiry regarding acquisition, and then, secondly, that they were indeed, open to offers of acquisition. This follows yet more recent news and opinions on the future of Hulu, with constant talk of an IPO, then its subsequent delay.
The streaming giant has caused quite a stir in Hollywood, and opinion has been pretty divided: some say it is the savior of TV, others say it has affected film industry jobs for the worse. Their launch of a premium subscription service, Hulu Plus, last year helped the company edge into solid profitability territory, and obviously peaked the interest of some internet big wigs. NBCUniversal, Fox and Disney-ABC all currently have stakes in Hulu, yet have limited influence on the overall running of the company, and this had led to clashes among board members and CEO Jason Kilar about the way it has affected older revenue streams of cable and TV. This may in turn be the reason for those holding companies looking to exit the venture.
Hulu announced that it would retain investment banks Guggenheim Partners and Morgan Stanley on Wednesday, who will then reach out to any prospective bidders with news that they are formally accepting offers. Expect the rumor-mill to start churning very soon.
The success of Hulu is largely due to their free ad-funded model, which also allows embedded videos of new and archived content, as well as clips and behind-the-scenes specials from providers and studios such as NBC, Fox, ABC and many more. Recently, the free-thinking institution TED has enable Hulu to share and distribute their series of ground-breaking talks. The embedded feature helps clips such as this go viral…
Hulu’s actions may well be blazing a path for the future of visual content for the end user, but the key TV networks and companies sure have kicked up a fuss along the way.
by Lee Jarvis.
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