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Yahoo’s Mayer Said to Explore Bid for Hulu to Add Video Service

*from, May 10, 2013 (To view original article click here.)

Take Away #1: Yahoo! Inc. CEO Marissa Mayer is exploring whether to bid for the Hulu LLC streaming-TV service, people with knowledge of the matter said.

Key Facts and Figures:

  • Mayer met this month with Hulu senior executives to learn more about the site, said one of the people, who asked not to be identified because the talks are private.
  • Inc. has also expressed an interest in Hulu, this person said.
  • Hulu is owned by News Corp., Walt Disney Co. and Comcast Corp.
  • Hulu, offers free reruns of television shows and movies and provides newer programming and earlier access through an $8-a-month service.

Take Away #2: With advertisers willing to pay a premium to run commercials alongside high-quality content, Mayer is seeking to add videos across Yahoo’s products.

Key Facts and Figures:

  • Mayer was joined at the meeting with Hulu by Henrique de Castro, Yahoo’s chief operating officer, according to
  • De Castro led a failed bid to buy a $300 million majority stake in France Telecom SA’s Dailymotion SA video service, the website said.
  • Amazon’s interest was also previously reported by AllThingsDigital.
  • Guggenheim Partners LLC, owner of the Los Angeles Dodgers and the Hollywood Reporter, also has expressed interest, people familiar with the matter said in March.
  • Only Peter Chernin, former president and chief operating officer of News Corp. and a co-founder of Hulu, has submitted a bid, they said.
  • Chernin, with backing from Providence Equity Partners, offered at least $500 million for Hulu, not including about $330 million in debt, people said in April.
  • The price would increase with additional content rights and longer contract terms, they said.

Take Away #3: Hulu directors are debating whether to sell Hulu.

Key Facts and Figures:

  • Disney or News Corp. could also seek complete control through a buyout.
  • Comcast is barred by regulators from an active role in Hulu following its 2011 NBC Universal acquisition.
  • Disney prefers an advertising-focused business model, while News Corp. would like Hulu to rely on subscriptions, people have said.

Take Away #4: Formed by NBC and Fox, Hulu initially let viewers watch shows online with fewer commercials, and Disney became an investor later on in April 2009.

Key Facts and Figures:

  • Hulu Plus, started in 2010, provides access to a bigger library of shows and the ability to watch programs on mobile devices, Web-connected TV sets and video-game consoles.
  • Hulu’s revenue last year jumped more than 65% to $695 million, driven by advertising and subscriptions, the company said on its blog.
  • The service has more than 4 million paying subscribers and served commercials from more than 1,000 advertisers in 2012, a 28% increase from a year earlier.

*To view original article from click here.

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