Hulu officially up for sale

A day after word broke that the web-based streaming movie and TV show business Hulu received an unsolicited buyout offer, the service has now officially put a virtual "For Sale" sign up on its lawn. The Los Angeles Times reports that it has partnered up with Guggenheim Partners and Morgan Stanley, two major investment banks that will help Hulu through a possible sale. The article adds that the formal bidding for any potential suitors will begin in a couple of weeks.

The news that Hulu is up for sale also means that its three major owners, NBCUniversal, Disney's ABC unit and News Corporation's Fox unit, clearly want to sell off their interest in the business which officially launched in March 2008. Indeed the Los Angeles Times story claims that the three TV networks  have "clashed with management at Hulu". The reason, oddly enough, is that the business has been highly successful in bringing free access to currently running TV shows on demand.  The article states that " ... cable satellite and television companies that pay fees to carry network programs have been upset that many of the same shows are available for free on Hulu."

On Tuesday it was rumored that Yahoo had made a bid to purchase Hulu, a rumor that has yet to be officially confirmed. However that buyout offer was the catalyst for the management to start looking into putting the company up for sale. It's currently unknown what the initial offer was worth or if that same offer will still be considered.

Report a problem with article
Previous Story

Crysis 2 PC DirectX 11 patch coming June 27

Next Story

WP7: Mango beta process detailed, delay explained, new unannounced features

16 Comments

Commenting is disabled on this article.

Now that the TV producers and networks are lobbying to get congress to make it a felony for companies to stream TV shows without consent. They now feel they hold all the cards on legal streaming companies like Hulu and can change the rules...and to tell the consumers...

"Hey..where else you gonna go to watch TV shows online legally?"

Well back to torrents, whatever Hulu morphs into will not be Hulu, and what is going to happen is everyone will try and sell us a service to see these programs

" ... cable satellite and television companies that pay fees to carry network programs have been upset that many of the same shows are available for free on Hulu."

Instead of stifling the evolution of TV to the web, these companies need to just figure out new business models to capitalize on. If we have learned anything about tech industry is the ones who refuse to evolve with the industry gets left behind, just ask Blockbuster.

Would this affect the content on Hulu?

If Hulu is currently owned by three major networks, doesn't that give it "better access" to TV shows and content?

kizzaaa said,
Would this affect the content on Hulu?

If Hulu is currently owned by three major networks, doesn't that give it "better access" to TV shows and content?

Yeah, once they sell it off, the could easily remove their content from the service. I mean they can do it now but that will only hurt their bottom line since their responsible for it's operations.

wixostrix said,

Yeah, once they sell it off, the could easily remove their content from the service. I mean they can do it now but that will only hurt their bottom line since their responsible for it's operations.

Which means they'll be less successful and people will start going elsewhere. I pay for their premium service and honestly, I'm not sure it's worth it. I still have to watch commercials just as the free users do. The premium only content is barely worth it. If they start losing programming then I'm out.