updated 08:02 am EDT, Tue March 26, 2013
Streaming service yet to receive formal offer for sale
Hulu could come under new ownership, if rumors about its potential sale is true. News Corp and Disney are said to be considering selling the streaming service to one of a number of potential suitors, though they are also considering the option of buying each other out in order to take full control of the company.
Sources of Reuters claim that the board of directors has "sounded out several possible buyers" under its internal strategic review, though it has yet to receive a formal offer, as well as the possibility of one buying out the other. Variety also suggests that there may be room for another content producer to help control Hulu, suggesting CBS Corp or another large studio as possible options, potentially expanding the content available on the service in order to compete with Netflix and Amazon.
An analyst for Wedbush Securities suggests that a potential sale would be a problem for the buyer, as a large proportion of contracts for Hulu programming is short term. Unless content costs could be fixed into a long-term agreement, analyst Michael Pachter believes "nobody will buy them."
This is not the first time that Hulu has put itself up for sale. In 2011, Hulu expected to receive bids of around $2 billion for the service, and though some did materialize, the service was withdrawn from sale.