Hulu no longer for sale - studios to provide $750 million for future growth
Hulu, a US-based streaming video website and service, has officially taken down its For Sale sign, announcing on Friday that 21st Century Fox, NBC Universal and The Walt Disney Company will keep their shares and provide $750 million to boost future growth.
Hulu went on the market earlier this year, as it had previously also done in 2011 for a price of $2 billion, although bids never materialised. But this time around, companies like Yahoo, Time Warner Cable and others were reportedly very interested.
The service, which offers ad-supported on-demand streaming video of TV shows, movies, trailers and more, originally began as a joint venture between the big three studios in 2007. Hulu has since expanded to provide web syndication for other websites, including AOL, MSN, MySpace, Facebook and Yahoo, and it offers a premium monthly subscription service called Hulu Plus.
Hulu hasn't quite reached the success of Internet streaming rival Netflix, though, despite its brimming library of content and affluence in online television. In fact, before Hulu was put up for sale, Jason Kilar, it's chief executive, and Rich Tom, Hulu's chief technology officer, both left the company in March.
It will certainly be interesting to see where Hulu goes now and how successful the cash infusion will be, especially since the company turned down prospective buyers offering over $1 billion and supposedly believes its equity value is more advantageous than its sale value.