Hulu’s stakeholders have decided not to sell the company after all, ABC Enterprises, NBC Universal, News Corporation, who jointly own the Web video site, said today. The stakeholders will provide a cash infusion of $750 million to drive growth.
“We believe the best path forward for Hulu is a meaningful recapitalization that will further accelerate its growth under the current ownership structure. We had meaningful conversations with a number of potential partners and buyers, each with impressive plans and offers to match, but with 21st Century Fox and Disney fully aligned in our collective vision and goals for the business, we decided to continue to empower the Hulu team, in this fashion, to continue the incredible momentum they’ve built over the last few years,” Chase Carey, CEO of 21st Century Fox, which part of News Corporation, said in a statement.
The companies’ decision to sell the successful platform, which brought in nearly $700 million in revenue in 2012, had some scratching their heads.
“It is important to realize that Hulu does not have to be sold to the highest bidder anymore,” wrote BTIG Research.
Move to sell the site stemmed from the complicated ownership stakes, particularly with when ownership was also shared by Providence Equity Partners, which was more interested in a one-time payout than a long-term investment.
Today’s announcement indicates that the companies believe they can now work together to build Hulu’s long-term value.