Tuesday, September 20, 2011
HULU SALE IN TROUBLE
According to Reuters, a slew of speed bumps have slowed down interest and the bidding process and may even kill all hopes of selling the service. According to sources, the first bump in the road can be attributed to Hulu's owners -- News Corp., Disney, NBC Universal and Providence Equity Partners -- who may not all be on the same page when it comes to selling the service. Without a unified front, it's been hard for the company to find an acceptable offer from the likes of Google, Amazon, DirecTV and Dish Network, who have all talked about bidding between $500 million to $2 billion. As the service awaits a new round of bids next week, it's been said that the major players involved have (unsurprisingly) agreed to reject any lowball offers.
The second issue is content licensing. Some content owners have quietly been grumbling about a sale and legal threats have been bandied about. Some content owners are wanting a piece of the pie in the sale and others are considering pulling their content depending on who the winner of the bidding war is.
All of this is making the process of selling Hulu a real challenge and some sources are saying the owners may pull the company off the market.