A deal for the company to acquire online video provider Hulu is apparently in its final stages and is reported to be worth more than US$1B (SG$1.3B). This comes after multiple offers two years ago from many of the same players, with the highest bid coming from Google at US$4B (SG$5.06B), which was ultimately rejected. The new deal is expected to be finalized by the end of this month.
PandoDaily’s Michael Carney says DirecTV is the best fit for Hulu for two reasons:
“First, DirecTV is one of a select few companies with the resources and wherewithal to absorb Hulu and retain or increase its value. Second, Hulu fills a gaping hole in DirecTV’s offering in a way that it would be hard pressed to achieve by other means.”
The “gaping hole” Carney refers to is DirecTV’s lack of any substantial online presence. With this new acquisition, the company will finally be able to hold a candle to its competitors in the online forum, and perhaps much more. Hulu Plus topped 3 million paid subscribers at the end of 2012 and raked in US$695M (SG$879M) in revenues during that year. Depending on how DirecTV uses their new acquisition, it could be looking at huge profits in the coming years.
Referenced from PandoDaily.