“Hulu’s board has approached potential buyers to gauge their interest in buying the online video service, three sources close to the company told Reuters, as owners News Corp. and Walt Disney weigh what to do with their interests in the five-year-old company,” Ronald Grover and Jennifer Saba report for Reuters.
“The board sounded out several possible buyers as part of an internal strategic review begun recently, but it has not received a formal offer, one of the sources said on Monday, speaking on condition of anonymity because the discussions were private,” Grover and Saba report. “It was unclear how many parties Hulu had contacted.”
Grover and Saba report, “News Corp and Disney are also considering other options, including buying each other out, one of the sources said on Monday on condition of anonymity. Finding a buyer will be difficult because most of Hulu’s contracts with networks for programs are short term, according to Michael Pachter, an analyst with Wedbush Securities in Los Angeles who follows Hulu competitors Netflix and Coinstar. ‘Nobody will buy them unless they can fix content costs in a long-term agreement,’ said Pachter.”
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