Apple Considers a Bid for Hulu
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Is Apple looking to spend some of its $76.2 billion in cash and securities and expand its online video options in the process? Bloomberg reports that could be the case.
According to two people in the know, but not “authorized to speak publicly,” Apple is in early talks and considering a bid for Hulu, an online video subscription service that offers hit TV shows and movies. “Hulu would add a new element to their arsenal from a streaming and subscription standpoint,” Gleacher & Co. Analyst Brian Marshall told Bloomberg. Although both Apple and Hulu representatives declined to comment, such an acquisition would undoubtedly provide a boost to Apple’s current online offering and present a challenge for streaming services like Netflix and Amazon.
Apple is actively looking to strengthen its iTunes content business. During Apple’s recent quarterly earnings call, Apple CFO Peter Oppenheimer told analysts to “Look for more content later this quarter across the various stores. We have some neat stuff coming.” While Oppenheimer wouldn’t elaborate on the company’s plans, it has shown before that they are not afraid to use their war chest to invest in strategic lines of business.
The deal with Hulu’s owners (Walt Disney, News Corp, Comcast’s NBC Universal and Providence Equity Partners) would reportedly include a five-year extension of program rights, as well as two years of exclusive access, essentially locking up content for the buyer for some time.
Hulu’s price tag could surpass $2 billion, according to data compiled by Bloomberg and SNL Kagan. Google, Yahoo and AT&T are reportedly among those currently in the mix to bid, while Microsoft has already dropped from bidding.
