14 October 2011

Hulu Equity Owners Decided To Not Sell Hulu

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As of October 13 of 2011, Hulu Equity Owners have decided to not sell and effectively terminate any sale processs for Hulu

http://blog.hulu.com/2011/10/13/hulu-equity-owners-announce-decision-to-terminate-the-hulu-sale-process/

Hulu Equity Owners released statement reads as it follows:

“Since Hulu holds a unique and compelling strategic value to each of its owners, we have terminated the sale process and look forward to working together to continue mapping out its path to even greater success. Our focus now rests solely on ensuring that our efforts as owners contribute in a meaningful way to the exciting future that lies ahead for Hulu.”

And to all that above i say:

Called it!

Back in September 8 of 2011, i posted on the news of Google entering big in the bid for Hulu, choosing to do it with a out-of-track power bid. In essence disrupting the bidding process for the sale of Hulu. Even before that i had already correctly projected out what the value of Hulu could be for those bidding in. And based on the max amount going around at the time -- at either 1.5 to 2 billion -- I then calculated that Google would offer twice whatever the top amount was at the moment. Later on the reported -- but not confirmed -- amount Google bid was said to be indeed 4 billion.

You can read the full post here for the full details on that part of this news story:

Google Bidding In Big For Chance To Acquire Hulu


Those in the initial race were not entirely disclosed but it was widely reported it included Yahoo and Amazon at first. But the rumored top bidder had it at DISH Networks. The very same one that bought Blockbuster at a firesale price of $320 million. Instantly getting cheap floor space to put out their DISH network modules, a better video streaming network tech and property that the one they had or could had come up with and even more pull when doing content agreement deals.

But then Google did their power bid. Doubling the amount at the time while at the same time asking for longer content agreement deal time and better terms for the deal. Making the previous "Auction" pretty much null. An action that Hulu Owners could not have seen in good light at all. As it meant that they now only had a single bid. One they will have to either counter with a final desired amount or reject it by closing down any sale process.

Being the later what they decided. Which is what i said would be more likely to happen as selling to Google was not in their best interests compared to just keeping growing Hulu themselves. As Google has not been the favorite partner for them to work with, to say the least from those in the TV and Movie industry. After what happened with Google blindsiding them, back when they launched Google TV without doing any proper content deals, previous to launch. Or so it is said.

I see Hulu Equity Owners decision as the right one. As Hulu got lots and lots of potential and room to grow. And it is still growing well. There was no good reason to sell it to begin with. One had to wonder if they started the sale just in spite for not agreeing with some of their CEO (Jason Kilar) outspoken "polarizing" ideas. That are right on as he has done a good job so far. Hope they let him continue to do so.

Now, there is always the chance and possibility that Google was not really craving Hulu as bad as they led everyone to believe. And they just wanted to make sure that neither DISH or Amazon acquired Hulu, by doing an offer they knew Hulu Equity Owners would turn down. Or at least that was what i also was thinking while writing this post.

But anyway, Hulu is for now Safe and unchanged. Something that makes me happy as i have been using it every day since it was invite only.

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