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AT&T (T) and Chernin Group have reportedly submitted a joint offer to acquire Hulu from...

AT&T (T) and Chernin Group have reportedly submitted a joint offer to acquire Hulu from Disney (DIS), 21st Century Fox (FOX) and Comcast (CMCSA), although it's not clear if the previous suitors of the Internet video service made bids ahead of the deadline on Friday for binding proposals. Those suitors include DirecTV (DTV), Yahoo (YHOO), Time Warner Cable (TWC) and KKR (KKR). Chernin is led by Peter Chernin, who founded Hulu when he was a senior exec at News Corp. (Previous)
Comments (13)
  • Who doesn't want Hulu ....anyone???
    7 Jul 2013, 01:52 AM Reply Like
  • I hate HULU I tried it for last month and its crap. Why would I pay and additional $8 for shows that have commercials in them?


    7 Jul 2013, 06:19 PM Reply Like
  • Acquisition of HULU, when completed, will prove to be an amazing advantage for AT&T (T) shareholders.
    T shareholders already enjoy a safe 6% dividend and it will be enhanced by the addition of HULU income to AT&T's coffers.


    7 Jul 2013, 09:12 AM Reply Like
  • T dividend is far from safe. There is great analysis in the market showing their underfunded pension liability and the depreciation and accelerated paydown they have taken on subsidies of phones. There is a ticking time bomb there, and similar to the old Ma Bell that eventually fell apart - this will undoubtedly be restructuring in the next 5 years. Higher interest rates will help the pension issue - but we are a long way from6-8% yields on T-Bonds.
    7 Jul 2013, 11:07 PM Reply Like
  • AT&T's dividend is barely over 5%, no where close to 6%. Also, Hulu would account for less than 1% of AT&T's revenues and this is not a very profitable business. Not sure why this is such a great investment with AMZN, NFLX dominating the business and many other competitors making it a risky investment.
    7 Jul 2013, 09:17 AM Reply Like
  • Competition is definitely there, however, Hulu offers two revenue streams versus any of the other competitors, so not so sure I'd agree with you completely.


    Netflix also has a cloud hanging over their head regarding price increases/branding; they will increase prices at some point in the future and it may not go so well.


    There is pressure for Netflix to remain as a low-cost second tier content provider. Under $10 is good, over $10, not so good.
    7 Jul 2013, 12:25 PM Reply Like
  • Another stinker...Netflix, crap company that can't provide us with content for the last 5 years! Tell me when a new movie ever came out on netflix and I will renew my subscription. Hulu and Netflix are terrible businesses, they were great ideas, but the management cannot cut content deals; Hulu makes you watch commercials like cable. Hulu also doesn't have The Walking Dead, so why bother? Netflix Disney deal is tentative at best and not till 2015 if the company doesn't get bought out or bankrupt first. I will stick with Amazon Prime for now .
    7 Jul 2013, 06:25 PM Reply Like
  • oh you are so wrong. If you've followed Hulu, they've been profitable for awhile. They've recently gone into debt to acquire more content and produce their own shows and hiring more staff - nothing wrong with investing in yourself? Also, Hulu has stated that they pay more per subscriber than netflix or amazon - so that's good news for anyone who owns shows.... and on top of that, it's a great place for advertisers - lower commercial count per break makes the ads stand out and more memorable.


    And because Hulu runs ads, they have a dual income - something that Netflix doesn't have. And if you've been paying attention you'd have notice that the producers and companies that own shows, they keep asking for more and more money each year. Netflix may have 30mm subscribers, but at some point the price for content will force them to raise prices or force them to reduce what they offer. It's like a snake eating it's tail.


    When you look at the eco system from afar, Hulu is the brand that can give a production company more bang for it's buck because it's built like a traditional Broadcast model online but with perks... they can pay some money for product but then even share some revenue. So if you have a popular show, you can make even more than you predicted. Meanwhile, with the other services, sure you get a big check, but if your stuff is super popular, you make less per subscriber/per view.


    Hulu may only be 5 years old but it's growing faster than any other video subscription service. The only thing that could stop them is if the sale is poisoned by some stupid "windowing" clause that will delay Hulu from running content for a few days. Expect to see piracy SKYROCKET.
    7 Jul 2013, 07:35 PM Reply Like
  • You're so wrong Bill. Hulu is best positioned to maximize producer's earnings in a huge way. They just need more subscribers and from their blog, they're growing pretty fast.


    Because they show ads, they can pay more in the long run, and if the content is popular, that producer can take home huge checks, monthly.


    Dual income is good, and it's something that Netflix and Amazon can't offer. Sure they can send over big checks, now... but at some point they won't be able to, or won't want too. And what makes you think Netflix will be around afterall?


    Ad revenue is HUGE money and Hulu shares that with producers or it pays them or both. Either way, a company stands to make a lot in the long run if they have a popular product . Sure Netflix can send over a big check, but it doesn't pay that producer for a subscribers that watched their stuff multiple times. Pretty soon everyone is watching for free. Sure that producer has a big check but it doesn't pay him for anything else.


    Then there is the quality issue. Hulu's player and service is hands down better than anything else out there. If the sale isn't poisoned by some protectionist measure where they get materials after 5 or 8 days, Hulu should continue to grow.
    7 Jul 2013, 07:35 PM Reply Like
  • So wrong? Address the statements I made please.


    AT&T's dividend is not 6% - that is correct.
    Hulu's revenues would make up a small portion of AT&T's total - that is correct.
    Netflix and Amazon dominate the space - they do. They have many more subscribers.
    Profitability - We don't know what it really is, since the company stopped talking about it. But they had almost $700 million in revenues last year, and NFLX for streaming was making only pennies on the dollar. Again, this would be a very small part of AT&T's profit. If they made 10% on the bottom line, that's just $70 million. AT&T had like $7 billion in profits last year.
    7 Jul 2013, 08:15 PM Reply Like
  • I have tried Hulu, and its not for me. I am not spending money to watch commercials sorry. Waste of my time. Crackle on the other hand is free, so I don't mind the commercials, I fully understand it...but to pay to watch commercials? No thanks, that's a rip off.
    7 Jul 2013, 11:59 PM Reply Like
  • dude: wake up, YHOO is not a bidder, and has not been a bidder for some time. they dropped out when the bids excedded $600 million.
    7 Jul 2013, 11:27 AM Reply Like
  • Pretty sure Chernin Group has been involved for a while. I think private players will get the deal or no one at all. Disney, Fox, and Comcast are not going to sell to direct competitors.
    7 Jul 2013, 12:16 PM Reply Like
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