AT&T, DirecTV and KKR in race to buy Hulu: WSJ

Mon Jul 8, 2013 9:22pm EDT

(Reuters) - Streaming video site Hulu has attracted three bids of over $1 billion from suitors including a partnership of AT&T Inc (T.N) and Chernin Group, the Wall Street Journal reported, citing people familiar with the matter.

The three highest bidders also include DirecTV (DTV.O) and Guggenheim Digital Media which is jointly bidding with private equity firm KKR & CO LLP (KKR.N), the Journal said. (link.reuters.com/pyb59t).

The deal could be sealed in a week or two after the deadline for bids ends this week, it added.

Hulu, which was created in 2007, says on its website that it has more than 3 million subscribers paying $7.99 a month for its premium service, and that it generated revenues of about $700 million last year. It sells advertising for its free service.

AT&T could benefit from Hulu's mobile video and streaming video services, the financial daily said citing analysts.

The proposed price tag in excess of $1 billion increases the likelihood of a sale after the owners, News Corp (NWSA.O) and Walt Disney Co (DIS.N), failed to sell the company in 2011.

Hulu was put on the auction block this year for the second time after the owners disagreed about how best to operate a Web service that streams TV programs and other videos, Reuters previously reported.

(Reporting by Avik Das in Bangalore; Editing by Stephen Coates)

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Comments (1)
arghhh wrote:
Hulu is a fairly decent service, even after Fox and Disney got through with it, but I fear it will turn to garbage after this sale. Corporate takeovers today treat businesses like commodities, not enterprises, and generally strip the value out of them. It’s like the housing market, and buyers end up paying too much, counting on either future appreciation or the ability to milk them as cash cows. Often, the debt load is huge, and buyers have to screw consumers to bail themselves out, then lose their customers and go under. Does anyone really believe that ownership by ATT, DirecTV, or private equity firm KKR will IMPROVE hulu in any way?

Jul 08, 2013 12:54am EDT  --  Report as abuse
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