[opendtv] Hulu Sale Called Off by Fox, Disney, NBCU

From: Craig Birkmaier <craig@xxxxxxxxx>
To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
Date: Sun, 14 Jul 2013 10:16:48 -0400
http://www.thewrap.com/media/article/hulu-sale-called-fox-disney-nbcu-102776

Hulu Sale Called Off by Fox, Disney, NBCU

Fox, NBCU and Disney had been shopping the company for the past several months

Published: July 12, 2013 @ 10:17 am

By Lucas Shaw

Fox, Disney and NBCUniversal have called off their planned sale of Hulu and 
will invest $750 million in the online video company, they announced on Friday. 

The owners had been exploring a sale for the past several months, accepting 
offers from as many as seven different companies. Everyone from Yahoo to 
private equity firm Silver Lake Partners to DirecTV made offers, but the number 
of interested bidders diminished as the owners insisted on receiving at least 
$1 billion for the company.

An insider close to the bidding said that DirecTV bid aggressively but that the 
withdrawal was a "strategic decision." It is the second time Hulu's owners have 
attempted to sell the company only to pull back.

In between those two attempted sales, CEO Jason Kilar departed the company in 
January, leaving Hulu without clear executive leadership. Andy Forssell 
(pictured), the former head of content, took over as interim CEO after Kilar 
left.

Many of the bidders balked at the terms of the deal, as the owners placed what 
one dubbed "onerous" demands with regard to content. As TheWrap reported, many 
of them, owners of TV networks like NBC, ABC and Fox as well as a litany of 
cable channels, wanted the rights to hold back certain shows from Hulu.

They also wanted to prevent certain shows from appearing on Hulu for 30 days 
after they aired. That ran counter to what made Hulu unique in the first place. 
Hulu was the first website to legally host a wide range of new TV shows just 
after they aired.

However, the owners have often disagreed about which shows should be available, 
when they should be available and whether they should be availabel via Hulu or 
Hulu Plus, Hulu's subscription service.

In this case they decided its best future involved their continued ownership.

“Hulu has emerged as one of the most consumer friendly, technologically 
innovative viewing platforms in the digital era," Disney CEO Bob Iger said in a 
statement. "As its evolution continues, Disney and its partners are committing 
resources to enable Hulu to achieve its maximum potential."

The extended sale process spurred many to doubt if a deal would close, as 
Hulu's owners previously tried and failed to sell the company. Hulu first began 
soliciting bids in March, and actually accepted the first round in May.

Hulu accepted final bids last Friday from DirecTV, Chernin Entertainment along 
with AT&T and Guggeheim Partners (allied with private equity shop KKR). Yet 
Guggenheim bailed earlier this week and the owners then took the company off 
the table. 
 
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[opendtv] Hulu Sale Called Off by Fox, Disney, NBCU

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