HULU For Sale?

This is so new to me I feel like I haven’t been keeping up like I should. However, news is news and here it is. HULU is up for sale and a lot of people are NOT happy about it. It surprises me 1) that it’s for sale at all and 2) there haven’t been more bidders to come forward. With the massive library they have, it’s a little shocking to see that they’re only naming the top companies like Google, Amazon, and Yahoo. From what I ‘translate’ from all these articles is that Hulu’s owners, News Corp., Disney, Comcast and Providence Equity Partners, are trying to decide on how to “carve up rights to build digital businesses without cannibalizing their more profitable traditional ones.” (Why is this starting to sound like a publicity stunt? Probably because it does.) More recently Hulu has taken part in the viewing only after 8 days since the episode first aired. If you want to watch the episodes the next day, you have to become a member of the site and pay the fee. At this point, some bidders are saying that this new “agreement” will hurt viewership and reduce how much viewers will be willing to pay for Hulu.

Although a Hulu spokeswoman declined to comment, we still have more info. So the site is up for sale and all these bigger companies are coming in with bids. Well, this little process could very well go on for a long time and other people familiar with the process say that all this might not even result in a sale. As of right now some bidders are expecting Hulu to sell from any where between $500 million to $2 billion. BTIG analyst Richard Greenfield says that the sale, all together, is a bad idea, “a mistake of epic proportions.” He continued, “Media companies should be going out of their way to retain ownership of Hulu and allow it to flourish. The bigger Hulu gets, the more dollars it can pay content creators on an annual basis.  While that may be true if it is owned by a third-party as well, being invested in Hulu and sacrificing near-term profits for long-term value creation appears far too compelling.”

Does anyone else feel like there’s something fishy going on here? Comment away!

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