In a statement, the media giants said they would retain their ownership positions and would infuse Hulu with $750 million in cash to "propel future growth." Wholesale Jewelry Accessories, Factory Outlet, No MOQ!
Though Comcast was not allowed to be part of the decision-making because of the regulatory conditions of its acquisition of NBCUniversal, it is investing an equal share of the $750 million so that the stakes remain the same.
The parent companies would not elaborate beyond the statment. None of the bidders—DirecTV , the Chernin Group with AT&T, Guggenheim Digital Media and Time Warner Cable, which wanted to buy a minority stake—would comment.
Hulu will use the $750 million to cover growing programming costs, including developing deeper libraries and more original content, an area of particular interest to Hulu interim CEO Andy Forssell. Both will help the company compete against Netflix.
(Read More: Malone Calls for Cable Consolidation)
What happened?
Sources tell me that as Disney and Fox went through the bids this week, they overcame their differences with a renewed understanding of the value of Wholesale Necklaces Hulu Plus, the $8-a-month subscription service, which has more than 4 million subscribers after more than doubling last year.
Hulu's parents had said it wasn't just a sale process but a "review of the business" to look at the best growth prospect. But Disney and Fox traditionally had different priorities: The former favored a free, ad-supported Hulu option; the latter preferred the subscription model.
But in reviewing bids from subscription services DirecTV, AT&T and Time Warner Cable, the owners saw that their primary interest was in that subscription model. It appears profitable in its own right, as well as a potentially key way to let pay-TV subscribers log in to access more streaming content—delivering more online content to boost the value of the subscription and prevent cord-cutting.
One sticking point for all the bidders was that Disney and Fox didn't want to give content rights for Hulu Plus for more than two years. Wholesale Fashion Daisy Ring Flowers Rings 2013.
Recent Comments