Microsoft backs out of acquisition talks with Hulu

Hulu has not been shy about its intentions of wanting to be purchased by a larger corporation. There have been many rumors about who has actually been in talks with the organization over the past few weeks; one such company speculated to be in talks was Microsoft.

According to Bloomberg, Microsoft is now out of the game and is no longer pursuing Hulu. Bloomberg states that Microsoft told Hulu executives sometime last week that it would not go into a second round of talks about a possible acquisition of the platform. It is being reported that Hulu has met with as many as 8 other companies including Google, Yahoo! and AT&T.

What Microsoft would have actually done with Hulu may have been a somewhat of a mystery. Microsoft already has its own media propagation platform and adding Hulu may have overlapped in too many areas for Microsoft to seriously consider the purchase.

The future of Hulu at this time is still up in the air. While it is almost certain that the company will be sold, there are currently no frontrunners for the acquisitions. Hulu made itself popular by offering consumers the ability to watch television shows on the own computer which allowed them to bypass cable operators.

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9 Comments

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BoyBoppins said,
Nooooooooooooooo! There go my hopes of a Zune+Hulu+XBOX Live service.

Microsoft is already working on a TV service.. Hulu probably has too much debt load and the licensing terms probably suck ass and i'm sure its losing customers by the boatloads every day as people see a lot of content only works over the web.

Even with all the overlap, MS is still the best fit in terms of integration and access to living rooms. Netflix already is a huge success on the xbox and Hulu would dominate as well.

Google doesn't really have much experience at all with the television media and bringing in new content might be a challenge until they get up to speed. I question Yahoo's ability to successfully manage any acquisition and ATT would just create a huge conflict of interest as it is to their benefit to limit content available online and encourage to people to keep watching cable tv.

BetaAddict said,
Even with all the overlap, MS is still the best fit in terms of integration and access to living rooms. Netflix already is a huge success on the xbox and Hulu would dominate as well.

Google doesn't really have much experience at all with the television media and bringing in new content might be a challenge until they get up to speed. I question Yahoo's ability to successfully manage any acquisition and ATT would just create a huge conflict of interest as it is to their benefit to limit content available online and encourage to people to keep watching cable tv.

Huh? Netflix didn't become great because it was on xbox, it became great because it is cheap, offers a lot, and can be played on almost any hardware. Hulu is basically at the same point, with HuluPlus already working on consoles.
Hulu just needs more money so they can start getting bigger named movie titles and possibly more TV shows. But right now, their library is not really lacking, but TV shows just don't hold the same appeal as movies.

shakey said,

Huh? Netflix didn't become great because it was on xbox, it became great because it is cheap, offers a lot, and can be played on almost any hardware. Hulu is basically at the same point, with HuluPlus already working on consoles.
Hulu just needs more money so they can start getting bigger named movie titles and possibly more TV shows. But right now, their library is not really lacking, but TV shows just don't hold the same appeal as movies.


Go back and read my post again. Slowly this time.

I said "Netflix already is a huge success ON THE xbox." No where did I imply that "Netflix is a huge success because of xbox." The point that I was trying to get across is that there is a fairly sizable portion of xbox users that also subscribe to Netflix as they compliment each other well in the living room as family entertainment. While there are ways to view Hulu on consoles, Hulu could benefit significantly from tighter integration.

In addition, it was never about the movies that made Hulu popular, and probably never will as competing against Netflix is a blackhole money pit. TV shows are the main fuel for the growth and the biggest selling point for HuluPlus. They just need to continue signing up more long-running tv shows and make their earliest seasons accessible behind the pay wall.

LAMj said,
O.0 now why would you think that? The Hulu plugin isn't even officially made by Hulu for WMC.

No, but it would be nice to have official support and a nice integration.

LAMj said,
O.0 now why would you think that? The Hulu plugin isn't even officially made by Hulu for WMC.

I think that google will get it and make it "only for" google tv and android.