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Hulu Sale Closed as Owners Fox, NBC and Disney Provide $750 Million for its Future

Jul 13 2013, 3:24am CDT | by , in News | Misc

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The owners of Hulu are not going to be selling it. Instead 21st Century Fox, NBC Universal and the Walt Disney Company will provide $750 million cash injection to maintain their ownership positions in Hulu.

Hulu sale is called off. The video service, Hulu will get $750 million pumped into its infrastructure for the sake of future growth. Investment in Hulu comes from three owner companies: 21st Century Fox, NBC Universal and the Walt Disney Company. There is a lot of value in Hulu’s subscription video on demand. “Hulu has emerged as one of the most consumer friendly, technologically innovative viewing platforms in the digital era. As its evolution continues, Disney and its partners are committing resources to enable Hulu to achieve its maximum potential,” said Robert A. Iger, Chairman and CEO, The Walt Disney Company. This service is in competition with Netflix and Amazon for viewership. The content will be accessible via its three owners. While Amazon and Netflix’s viewing quality contains no ads, Hulu’s does. And it charges $8 per month as subscription charges. While it may be behind Netflix in viewership matters, it is way ahead of Amazon. If Hulu wants to really lock horns with its rivals it needs fresh cash injections. This it has just received recently from its trio of owners.

President and CEO of 21st Century Fox Chase Carey said, “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.”

The plans of selling off Hulu have therefore been foiled. Potential buyers could have included: Yahoo, DirecTV and Time Warner Cable. It’s obvious that the owner companies see some value in Hulu otherwise why would they be retaining it. Besides, they found the cash offerings from the buyers to be insufficient. Now they are looking forward to its growth and progress in future times. Hulu has many chances of making it to the top. This fresh cash infusion will ensure its entry into the stratosphere although some solid effort is required. And with a little bit of luck and chutzpah, Hulu will see the light at the end of the tunnel.

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