Hulu Bidding Process Extended28 Jun, 2013 By: Erik Gruenwedel
Presumptive favorite DirecTV reportedly needs more time to shore up financing
DirecTV’s acquisition of Hulu has reportedly been put on hold as the satellite TV operator continues to round up requisite financing of the near $1 billion deal.
In the meantime, Hulu’s corporate parents — The Walt Disney Co., News Corp. and Comcast — have extended the private bidding process, which includes contenders Guggenheim Digital Partners and Chernin Entertainment. The latter is run by former New Corp. executive Peter Chernin, who submitted a bid in partnership with AT&T, according to The New York Post, which is owned by News Corp.
Yahoo!, KKR and Time Warner Cable have also submitted bids.
“There are really just three main bidders left: DirecTV, Chernin and Guggenheim,” a source familiar with situation told The Post, adding that Hulu “pushed back the deadline because DirecTV isn’t ready.”
In addition, language in the transaction reportedly prohibits Hulu from streaming primetime TV programing for up to 30 days after initial broadcast.
Hulu’s subscription video-on-demand service, Hulu Plus, ended the first quarter with 4 million subs and combined for the first time generated more than 1 billion video streams in the period.
In May Hulu announced the planned launch of 11 new original series, including animated series “The Awesomes,” “Quick Draw,” a half-hour comedic Western; and high school drama “East Los High,” among others.