Reports: Hulu mulls sale after receiving buyout offer
The Wall Street Journal and CNBC are reporting that Hulu managers are considering a sale, but one report says that whoever the prospective buyer is, it's not Google. The LA Times cites interest from Yahoo.
Hulu apparently has a suitor and the video portal is considering whether to sell, according to reports from CNBC and The Wall Street Journal.
CNBC added that whoever the prospective buyer is, it isn't Google.
The LA Times, meanwhile, says that Yahoo has approached Hulu about a possible acquisition. It also reports that Hulu's board of directors has not met to consider any offers.
Originally founded by News Corp. and NBC Universal, Hulu later saw Disney become a partner. The service streams TV shows and movies over the Internet.
Hulu was an instant hit when it launched in 2007 but has since struggled to keep pace with Netflix, the Web's No. 1 video rental service. Earlier this year, Hulu CEO Jason Kilarabout the company and questions about how long he might stay in the job when he criticized TV and appeared to take a few shots at some of the companies that back the service.
Kilar, a former Amazon executive, was critical of how TV advertises to viewers and predicted that prices and profit margins for TV would come down. He was dismissive of how TV entities charge Web distributors to stream content over the Internet.
The split between Hulu's owners and managers is only one reason that any bidder would have to be cautious. One question is how long is Hulu guaranteed to receive content from the current studio owners? That's a big reason why this alleged bid smells funny. Why would someone leak news about an acquisition bid without naming the bidder? Is someone trying to drive the price up on Hulu?
Editors' note, June 22 at 4:12 a.m.: Updated to include information about Yahoo's possible interest in Hulu.