Google (GOOG), Amazon (AMZN) Among Bidders for Hulu
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Google (Nasdaq: GOOG) shares are bouncing Monday, in part following reports the search giant is in talks for the acquisition of video streamer Hulu. According to the WSJ, bids for Hulu are due Wednesday.
Price ranges are expected to be based on the type of programming Hulu will license, when it will be available, and how long agreements would run.
One source sees a range of $500 million to $2 billion. Potential buyers include Google, Yahoo! (Nasdaq: YHOO), Amazon.com (Nasdaq: AMZN), and DirecTV (NYSE: DTV), among others. If Google's bidding, than Apple (Nasdaq: AAPL) and Microsoft (Nasdaq: MSFT) might be in the process just so Google won't win, but that's pure speculation on our part.
None of the bidders listed commented on the report.
Hulu, which is owned by Disney (NYSE: DIS), Comcast (Nasdaq: CMCSA), News Corp. (Nasdaq: NWSA), and Providence Equity Partners, believes the company is worth a "couple billion," according to the report.
It should be noted that nothing is even close to being set in stone. Following rapid growth of the site, one analyst has handicapped the odds of a sale at 50 percent. One of the primary drivers upon exploring a sale is the differing views between management and media owners.
Recently, Hulu's media owners, Disney and News Corp, negotiated rights to when the newest TV shows will be available on the service. Formerly, new shows which just aired would be available one day later on Hulu, but that has changed to eight days, and viewers will need a subscription to certain pay-TV services with which Hulu has struck deals, or sign-up for Hulu's premium service, Hulu Plus.
Yahoo! made an unsolicited bid in Hulu a few months ago, prompting others to take a look at the company. Yahoo! may be chomping at the bit as such a purchase would help the company gain a stronger foothold in the ever-increasing video streaming market. According to comScore, U.S. visitors to Yahoo!-related sites watched an average of 41 minutes of video content in July, compared with 205.5 for Hulu and 58.5 minutes for AOL (NYSE: AOL).
But companies like Google and Amazon have deeper pockets, and both offer streaming services currently. Google may be looking to bolster offerings on YouTube, while Amazon.com (Nasdaq: AMZN) looks to pump-up its streaming library in an effort to make it's Amazon Prime premium service more appealing when compared with Netflix (Nasdaq: NFLX). Amazon currently boasts a catalog under half the size of Netflix, though the average monthly price of $6.58 could be justified against Netflix's $7.99 considering Amazon Prime members also get free two-day shipping (which costs about $3.99 on average).
Netflix CEO Reed Hastings has already ruled-out a bid for Hulu.
Either way, more news on the potential sale will come about over the next weeks as bids are submitted and evaluated.
Price ranges are expected to be based on the type of programming Hulu will license, when it will be available, and how long agreements would run.
One source sees a range of $500 million to $2 billion. Potential buyers include Google, Yahoo! (Nasdaq: YHOO), Amazon.com (Nasdaq: AMZN), and DirecTV (NYSE: DTV), among others. If Google's bidding, than Apple (Nasdaq: AAPL) and Microsoft (Nasdaq: MSFT) might be in the process just so Google won't win, but that's pure speculation on our part.
None of the bidders listed commented on the report.
Hulu, which is owned by Disney (NYSE: DIS), Comcast (Nasdaq: CMCSA), News Corp. (Nasdaq: NWSA), and Providence Equity Partners, believes the company is worth a "couple billion," according to the report.
It should be noted that nothing is even close to being set in stone. Following rapid growth of the site, one analyst has handicapped the odds of a sale at 50 percent. One of the primary drivers upon exploring a sale is the differing views between management and media owners.
Recently, Hulu's media owners, Disney and News Corp, negotiated rights to when the newest TV shows will be available on the service. Formerly, new shows which just aired would be available one day later on Hulu, but that has changed to eight days, and viewers will need a subscription to certain pay-TV services with which Hulu has struck deals, or sign-up for Hulu's premium service, Hulu Plus.
Yahoo! made an unsolicited bid in Hulu a few months ago, prompting others to take a look at the company. Yahoo! may be chomping at the bit as such a purchase would help the company gain a stronger foothold in the ever-increasing video streaming market. According to comScore, U.S. visitors to Yahoo!-related sites watched an average of 41 minutes of video content in July, compared with 205.5 for Hulu and 58.5 minutes for AOL (NYSE: AOL).
But companies like Google and Amazon have deeper pockets, and both offer streaming services currently. Google may be looking to bolster offerings on YouTube, while Amazon.com (Nasdaq: AMZN) looks to pump-up its streaming library in an effort to make it's Amazon Prime premium service more appealing when compared with Netflix (Nasdaq: NFLX). Amazon currently boasts a catalog under half the size of Netflix, though the average monthly price of $6.58 could be justified against Netflix's $7.99 considering Amazon Prime members also get free two-day shipping (which costs about $3.99 on average).
Netflix CEO Reed Hastings has already ruled-out a bid for Hulu.
Either way, more news on the potential sale will come about over the next weeks as bids are submitted and evaluated.
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