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DirecTV Consider to Acquire Hulu

May 18 2013, 4:27am CDT | by , in News | Technology News

DirecTV Consider to Acquire Hulu
 
 

DirecTV, the second largest satellite provider in the United States is vacillating over a decision. Should it or should it not buy Hulu? And furthermore ought it to wholly or partially acquire the online site that lends access to television programs?

DirecTV is caught in a state of attraction. While it is planning on acquiring Hulu, it is yet wavering over whether to bite off a large piece or swallow it whole. DirecTV(DTV) is a big name that provide satellite TV broadcast all across United States. DTV is interested now to bid for video site Hulu. Such decisions have dogged many businesses. A recent example is Yahoo’s acquisition bid for Tumblr. Tumblr is adamant that it wants more than the $1.1 billion price fixed by Yahoo. Now the thing to see is whether Yahoo will follow up with a raised rate or will it leave the field empty for someone else to come up with the astronomical amount.

The online video website, Hulu has placed itself for sale since 2011. And just now there is an interested party. A spokesperson at DirecTV refused to comment on the situation according to Bloomberg. They are keeping it a secret. But where there is smoke there is fire. Once the rumored deal is made Hulu could expand operations even further under the patronage of DirecTV.

DirecTV’s main competitor in the market, Dish Network had taken a similar course of action by acquiring Slingbox. Now it features live programs online in return for specified payment. Hulu is not that different in its creative capabilities and offers programs online both free and in return for cash. It had collected funds amounting to $700 million by the end of last year. With the merger with DirecTV looming ahead both companies will make hay while the sun shines.

Hulu has three main investors who have major shares in the company. They are Walt Disney, News Corp and Comcast. All three agree on what is the right thing to do. They want to sell the site for a cool profit.  Other parties that are keenly interested in Hulu include Yahoo whose CEO Marissa Mayer met with the top brass of Hulu for talks concerning a possible takeover. As for Time Warner and Guggenheim Partners both have their eyes set on the jackpot. The thoughts are crackling along the brain circuitries of the head honchos of all these famous firms.

Mergers and acquisitions are the stuff of which modern business practices are made of. The world may be cut-throat and greedy but it is greed which fills the need of so many. Paradoxically, through self interest many selfless tasks indirectly occur. In the words of the billionaire Ross Perot, it is business that creates surplus jobs for people. Without free enterprise there would be no opportunities or chances for economic prosperity in the United States or elsewhere for that matter.

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