WASHINGTON – Online video site Hulu is now up for bid, according to its owners Walt Disney Corp. and News Corp. There have been several bids by prominent companies and groups of investors, but now it shows how important video sites are in today’s market.
The Associated Press reports that the bidders will be announced in the near future, but unofficially, Yahoo! may be in the mix.
Hulu entertained several bids before but withdrew upon reconsideration. The recent bidding war is most in part to the resignation of CEO Jason Kilar, and whose interim replacement Andy Forsell is rethinking Hulu’s strategy.
Hulu does not have as much reach or revenue as Netflix does, making $695 million with more than 4 million subscribers for its $8-per-month Hulu Plus. Walt Disney and News Corp. say that Hulu is losing money.
Its ad revenue is very limited compared to cable television and whose subscription is dwarfed by Netflix’s 29.2 U.S. subscribers.