In a short and to the point statement released mid-week, equity owners and Hulu senior management team announced that Hulu was no longer for sale:
”Since Hulu holds a unique and compelling strategic value to each of its owners, we have terminated the sale process and look forward to working together to continue mapping out its path to even greater success. Our focus now rests solely on ensuring that our efforts as owners contribute in a meaningful way to the exciting future that lies ahead for Hulu.”
News Corp., Disney and Providence Equity Partners., along with Hulu senior management, issued the joint statement. NBCUniversal, also a partner, was not mentioned in the statement, according to THR, probably because it resigned any management responsibilities as one of the conditions for governmental approval of its merger with Comcast.
When the video streaming company announced about two months ago that it was starting a bidding process, analysts had speculated the company might bring in $2.5 billion-$3 billion. THR is speculating since the effort to sell has been abandoned suggests that would-be buyers weren’t willing to spend that much money.
Google was seemingly set to spend as much as $4 billion to land Hulu with extensions on content rights beyond existing parameters, according to Variety. Part of the issue was bidders, naturally, were leery of buying a streaming-media company without guarantees they would have easy and inexpensive access to TV shows and movies once the content partners were out of the ownership picture.
THR also mentioned that Hulu has such potential that one influential Wall Street analyst has been blogging for months that Hulu’s owners should rethink their plan to sell the company. It appears that Hulu owners were listening.