Who’s In for Hulu? DirecTV, Mystery Names Bid $1 Billion
DirecTV (NASDAQ:DTV) and two other bidders are offering at least $1 billion for Hulu LLC, increasing the odds that the online video video website’s owners will be able to sell the service.
The website’s three owners Walt Disney Co. (NYSE:DIS), News Corp. and Comcast Corp’s (NASDAQ:CMCSA) NBC Universal originally tried to shed Hulu in 2011, but plans for an initial public offering faltered after they failed to find an acceptable offer price. Now that offers of at least $1 billion are among the seven buyout offers the board will consider within the new few weeks, however, the owners are more confident they can strike a deal.
The Hulu service has more than 4 millions subscribers and generates about $700 in revenue. It is unclear which other two bidders offered $1 billion, but should the Hulu and DirecTV deal come to fruition, DirecTV, the second-biggest U.S. pay-TV service could use Hulu as a lower-cost online video offering in addition to its more expensive packages.
According to Reuters, Hulu has also received offers from KKR & Co. (NYSE:KKR), Time Warner Cable Inc. (NYSE:TWC), Guggenheim Digital, Yahoo! Inc (NASDAQ:YHOO), Silver Lake Management LLC, and William Morris Endeavor Entertainment LLC. Hulu board members, advised by Guggenheim Partners, will review and narrow down the offers within the next two or three weeks.
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