News Stakeholders Take Hulu Sale Off the Market
posted on 2013-07-13 01:28 EDT
The entertainment trade magazine Variety reported on Friday that The Walt Disney Co., NBCUniversal, and 21st Century Fox chose not to sell video streaming service Hulu. The three companies are instead jointly investing US$750 million "to propel future growth," according to the magazine.
DirecTV, AT&T and Chernin Group, and Time Warner Cable were the last three parties that cast bids for the service. Stakeholders were asking for at least US$2 billion, but bids failed to reach US$1 billion, according to Variety.
Representatives from Disney and 21st Century Fox said the decision was not based on receiving low bids. The companies said they believe Hulu could develop its subscription video-on-demand services and challenge content providers such as Netflix.
Hulu Plus has more than 4 million paid subscribers. Jason Kilar resigned his position as Hulu CEO in January.
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