Streaming video site Hulu has attracted three bids of over $1 billion from suitors including a partnership of AT&T Inc and Chernin Group, the Wall Street Journal reported according to Reuters.
(Reuters) – Streaming video site Hulu has attracted three bids of over $1 billion from suitors including a partnership of AT&T Inc (T.N: Quote, Profile, Research, Stock Buzz) and Chernin Group, the Wall Street Journal reported, citing people familiar with the matter.
The three highest bidders also include DirecTV (DTV.O: Quote, Profile, Research, Stock Buzz) and Guggenheim Digital Media which is jointly bidding with private equity firm KKR & CO LLP (KKR.N: Quote, Profile, Research, Stock Buzz), the Journal said. (link.reuters.com/pyb59t).
The deal could be sealed in a week or two after the deadline for bids ends this week, it added.
Hulu, which was created in 2007, says on its website that it has more than 3 million subscribers paying $7.99 a month for its premium service, and that it generated revenues of about $700 million last year. It sells advertising for its free service.
AT&T could benefit from Hulu’s mobile video and streaming video services, the financial daily said citing analysts
.
The proposed price tag in excess of $1 billion increases the likelihood of a sale after the owners, News Corp (NWSA.O: Quote, Profile, Research, Stock Buzz) and Walt Disney Co (DIS.N: Quote, Profile, Research, Stock Buzz), failed to sell the company in 2011.
Hulu was put on the auction block this year for the second time after the owners disagreed about how best to operate a Web service that streams TV programs and other videos, Reuters previously reported
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