The three US television networks that jointly own online video service Hulu have decided to call off their sale plans, instead opting to make a new investment of US$ 750mn in the service in order to better compete against rivals like Netflix.
After months of inviting offers, the decision by Hulu owners 21st Century Fox, the Walt Disney Company and NBCUniversal to cancel the sale will come as a shock to interested parties, rumoured to include satellite operator DirecTV.
While some reports pegged offers received for Hulu at around US$ 1bn, the New York Times quotes a source familiar with the process as saying that the owners believe Hulu’s equity value “outstrips the sale value” in the long term.
Hulu currently has over 480 content partners and its subscription service Hulu Plus reached 4mn paying subscribers earlier this year.
Via the New York Times