Rumor: Google (GOOG) in Talks to Acquire Hulu; Netflix (NFLX) Volatile
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Los Angles Times reports that the mega online search engine Google (Nasdaq: GOOG) is currently in talks to purchase the online video pioneer Hulu.
Management at Hulu has also meet with other companies such as Microsoft (Nasdaq: MSFT) and Yahoo (Nasdaq: YHOO) trying to figure out what move would be best suitable for the company’s future and current shareholders. The company is using financial advisor Morgan Stanley and Guggenheim to set up the meetings and help with the difficult decision.
Hulu has been experiencing strong growth over the past few years as more people have been watching television shows and movies over the internet instead of a cable provider. Hulu is expected to earn $500 million in revenues this year in advertising from its Hulu Plus subscription alone.
The reason that so many top mega companies are trying to get their hands on Hulu is because of its licensing deals for popular TV shows such as “Glee,” "Modern Family" and Comedy Central's "The Daily Show with Jon Stewart."
Walt Disney and News Corporation recently renewed their licensing agreements with the company which has made the company even more attractive. The Times reports, “Comcast (Nasdaq: CMCSA) agreed to give up NBC Universal’s management control in the venture to get approval for its acquisition of a majority stake in the media conglomerate. Comcast is required to provide programming to Hulu on the same terms as the other owners.”
“If you had those deals for 10 years, OK, you have time to build a business,” said Arash Amel, research director for digital media for IHS Screen Digest. “But look at what they are trying to do to Netflix. They help you until you are successful then they want most of what you make or they try to kill you.”
On the report in the Time, Netflix (Nasdaq: NFLX) shares dropped nearly 2 percent. The stock has since recovered, and is now up about 1.5 percent on the session.
Management at Hulu has also meet with other companies such as Microsoft (Nasdaq: MSFT) and Yahoo (Nasdaq: YHOO) trying to figure out what move would be best suitable for the company’s future and current shareholders. The company is using financial advisor Morgan Stanley and Guggenheim to set up the meetings and help with the difficult decision.
Hulu has been experiencing strong growth over the past few years as more people have been watching television shows and movies over the internet instead of a cable provider. Hulu is expected to earn $500 million in revenues this year in advertising from its Hulu Plus subscription alone.
The reason that so many top mega companies are trying to get their hands on Hulu is because of its licensing deals for popular TV shows such as “Glee,” "Modern Family" and Comedy Central's "The Daily Show with Jon Stewart."
Walt Disney and News Corporation recently renewed their licensing agreements with the company which has made the company even more attractive. The Times reports, “Comcast (Nasdaq: CMCSA) agreed to give up NBC Universal’s management control in the venture to get approval for its acquisition of a majority stake in the media conglomerate. Comcast is required to provide programming to Hulu on the same terms as the other owners.”
“If you had those deals for 10 years, OK, you have time to build a business,” said Arash Amel, research director for digital media for IHS Screen Digest. “But look at what they are trying to do to Netflix. They help you until you are successful then they want most of what you make or they try to kill you.”
On the report in the Time, Netflix (Nasdaq: NFLX) shares dropped nearly 2 percent. The stock has since recovered, and is now up about 1.5 percent on the session.
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