Apple Eyes Hulu Acquisition Amidst Intense Bidding War
Apple Inc, the world's second-most valuable company, is considering a bid for Hulu, the online video service, in a move that could shake up the digital media landscape. According to sources, Apple is in early talks with Hulu's owners, Walt Disney Co, News Corp, and Comcast Corp's NBC Universal, which are offering a five-year extension of program rights, including two years of exclusive access. This move would represent a significant challenge to Netflix Inc and give Apple a new subscription service.
Key Takeaways:
- Apple is considering a bid for Hulu, with a valuation of $76.2 billion in cash and securities.
- Hulu's owners are offering a five-year extension of program rights, including two years of exclusive access to potential suitors.
- Morgan Stanley and Guggenheim Partners, bankers for Hulu, have elicited interest from Google Inc, Yahoo Inc, AT&T Inc, and other companies.
- Microsoft Corp has dropped out of the bidding process.
- Amazon.com Inc is unlikely to bid without guarantees of access to shows.
- Hulu offers advertising-supported and subscription TV service over the Internet and on mobile devices.
Statistics:
- $76.2 billion: Apple's valuation in cash and securities.
- 5 years: The duration of the program rights extension offered by Hulu's owners.
- 2 years: The duration of exclusive access offered by Hulu's owners.
- $2bn: The upper limit of the bid Yahoo Inc is considering for Hulu with four or five years of exclusive access.
Sources:
- "Two people with knowledge of the auction" (unspecified)
- "People familiar with the matter" (unspecified)
- Morgan Stanley and Guggenheim Partners (bankers for Hulu)
- Meredith Kendall, Spokeswoman for Hulu
- Tom Neumayr, Spokesman for Apple
- Business Insider reporting on a person with knowledge of the matter (specifically regarding Yahoo Inc's bid)