As potential buyers gear up to bid on video streaming site Hulu, its media company owners could be hurting chances for a sale in their efforts to make money without cannibalizing profit from traditional media.
On Wednesday, bidders—including Google, Yahoo, Amazon, and DirecTV—are expected to make initial offers, according to The Wall Street Journal. Yahoo, whose unsolicited interest first led Hulu to consider a sale, remains an “eager bidder” but could be outbid by Google or Amazon.
Sources said that the bidders are likely to offer a range of $500 million to $2 billion. Their proposals will be based on what types of television shows Hulu would license, when those shows would become available, and how long the agreements would stretch.
Hulu’s board, however, could be expecting much more—up to “a few billion dollars, given the strong growth in users and content on the site,” according to one source.
There’s also debate about whether a sale will go through at all, with one source calling it “very likely” and other sources pegging the likelihood at just 50 percent. One issue that could potentially derail a sale is a recent agreement between the site’s media owners—Fox, Disney’s ABC, and Comcast’s NBCUniversal—that would allow them to restrict the availability of content on the site in an attempt to protect traditional TV revenue.
Fox already said that it would make new shows available eight days after the original air date rather than the next day, while ABC could soon follow suit, according to the WSJ.