Monday, July 25, 2011

Yahoo are willing to buy Hulu for a price tag of $2 Billion

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Yahoo would pay up to $2 billion to buy Web TV site Hulu from its current owners –  Disney, News Corporation, Comcast, and private equity firm Providence Equity Partners –  a source familiar with Yahoo's M&A plans tells us.
But Yahoo's corporate development people will only bring that type of deal to the Yahoo board if only hulu will guarantee them with four or five years of exclusive access to current TV shows and older movies.
According to Bloomberg report which was published yesterday  suggested Hulu's owners are only willing to offer Hulu's new owner five years of access, but only two years of exclusivity.
Without four or five years of exclusive streaming rights to TV shows and movies, Hulu is "not worth anything."
Hulu has some "nice technology," but if it doesn't come with exclusive rights, Yahoo would probably be better off just submitting a competing bid for the right to stream TV shows and movies.

"It would cost a lot less."

On the other hand, If Hulu had exclusivity for four or five years, that would gives Hulu's new owner – Yahoo, in this scenario – enough time to "build enough equity with consumers that you've created a real leader in premium content and premium advertising."


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