One of the big questions in the video and internet world is who is buying Hulu.
The streaming video site has had several suitors including DirecTV and AT&T. With Hulu offering hit TV shows 24 hours after they are aired the business opportunity looks very enticing even though the current owners of Hulu, Comcast, Disney and 21st Century Fox have yet to turn a profit. Revenue for the site has several options with Pay TV the primary consideration for long term revenue. With the pay TV revenue in mind Direct TV seems to be a perfect fir to take on this popular website.
Disney and 21st Century Fox have been at odds as to how to monetize the service with Disney supporting the idea of paid advertisements on the site and 21st Century Fox looking at the subscription side. Both models have been explored and are in use but neither business model seems to be cutting it and thus the question “Who is buying Hulu” because the partners have that disagreement as to how to grow the revenue to a profitable area. The site looks and functions beautifully and has no problem attracting content so all that is missing is the revenue piece. Last year’s take was in the 700 million dollar range.
If you want to be the answer to the question, “Who is buying Hulu?”, then submit a bid by Friday to Guggenheim Partners as they are advising the sellers in this transaction.