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.
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