Hulu Buyout By Yahoo May Be In Sight
Marissa Mayer, CEO of Yahoo, met with the corporate owners of Hulu recently, which fueled reports on a possible buyout of the video streaming company.
Reports revealed that the company was looking for buyers in the last few years and a number of companies were reportedly interested. Aside from Yahoo, Amazon was also interested in the company. The former interim CEO of Yahoo, Ross Levinsohn, was also one of the executives who showed interest in the company. Levinsohn is now connected with Guggenheim Partners.
It is widely-known that Yahoo is aiming to enhance its video feature, which is considered an important component of the business of the company. The last few years saw a number of speculations of a Hulu buyout. The company was put up for sale last 2011 by News Corp and Walt Disney. However, the sale was put off since the owners value the unique and undeniable strategic importance of the company. Yahoo was among the companies that wanted to buy the Hulu.
Soon after this aborted buyout, the share of Providence Equity Partners was sold, and NBC Universal relinquished its involvement in management due to restrictions on its acquisition of the company. Jason Kilar, CEO of the company, also indicated that he will resign in the first quarter.
News Corp and Disney, the remaining owners of the company, have different ideas on the strategy for Hulu. News Corp wants the company to provide service through subscription and gradually move away from a service supported by ads. On the other hand, Disney wants it the other way around, an ad-supported service.
Although reports have hinted at the possibility that an outside buyer will acquire video streaming company, it is also possible for News Corp or Disney to acquire the stake of the other in the company.
No statements were released by either Yahoo or Hulu in connection to a possible buyout.