So Hulu is no longer for sale …
The owners of Hulu said the over-the-top TV service will not be sold and that they will instead infuse it with $750 million of new capital to “propel future growth.”
The announcement, which came Friday afternoon, comes after a variety of major communications companies — including satellite provider DirecTV and AT&T — signaled interest in acquiring Hulu, which offers viewers a way to watch recent TV shows.
The decision to hold onto the site is not a big surprise in light of the strategic dilemma that confronts Hulu’s current owners: the company’s value lies in its programming — but, in any sale, the current owners do not want to include long-term licenses for fear of diluting the overall value of the programming.
Hulu currently offers OTTP programming for a $8 per month fee, for Hulu Plus content.
Here is how Chase Carey, President and Chief Operating Officer of 21st Century Fox, explained the decision:
“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.”
Translation Netflix isn’t going anywhere, so neither are we.