What Does Potential Hulu Sale Signify for Cable Television?
Rumors are surfacing that Hulu is being shopped around by its majority stakeholders. The board of Hulu, whose controlling owners are Disney (NYSE:DIS) and News Corp. (NASDAQ:NWSA), is seeking out potential buyers, although nothing has been set in stone.
This is not the first time Hulu has been on the auction block. In October 2011 the company was auctioned and drew offers from Google (NASDAQ:GOOG), Amazon (NASDAQ:AMZN), and Yahoo (NASDAQ:YHOO) — although the purported high bid came from Dish Network (NASDAQ:DISH) at $1.9 billion.
Guggenheim Partners, owner of the Los Angeles Dodgers and the Hollywood Reporter, is believed to be interested in acquiring Hulu, although there has been no official word yet…
Chances Hulu Will Be Sold
This potential Hulu deal is yet another moving piece in the seemingly never-ending shift of cable television. As of right now the only thing we know about television is that the old way — you know, where a family sits on the couch and fights over who gets the remote — is long gone.
In the past month alone CBS (NYSE:CBS) announced that all of its primetime television will be available online on its website a week after airing. HBO is rumored to be considering offering HBO GO to non-cable subscribers, and Netflix (NASDAQ:NFLX) released its own original program, House of Lies, exclusive to its viewers. One also can’t fail to count on Amazon, which has never been afraid to spend money and recently swiped extremely popular British television series, Downton Abbey, from Netflix’s queue.
So, despite Hulu’s chief executive, Jason Kilar, announcing the company is poised to post record firs- quarter numbers, the outlook on television and video streaming in general is too murky to be confident in any concrete long-term growth, for anyone.
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