"In 2011, Hulu’s owners put the company up for sale and were looking for a bid of at least $2 billion; in exchange, they would offer content licenses that would run for two to three years."
"Last month, former News Corp. COO Peter Chernin submitted a starting bid of $500 million, with the understanding that he would be willing to pay more for extended licenses."
Basically, a huge chunk of Hulu's value is having a wide selection of content. At the same time the people doing the highest value licencing also own the content. Right now they can play an accounting game and lower the licencing costs to make it look profitable sell and then raise their licencing costs. Effectively it's the same money because they own the company as long as all the owners agree to a sweetheart deal. Unfortunately for them they are having some issue deciding just how much everyone should discount there content to make Hulu look better. However, nobody got suckered into there 2 billion dollar shell game.
"In 2011, Hulu’s owners put the company up for sale and were looking for a bid of at least $2 billion; in exchange, they would offer content licenses that would run for two to three years."
"Last month, former News Corp. COO Peter Chernin submitted a starting bid of $500 million, with the understanding that he would be willing to pay more for extended licenses."
Basically, a huge chunk of Hulu's value is having a wide selection of content. At the same time the people doing the highest value licencing also own the content. Right now they can play an accounting game and lower the licencing costs to make it look profitable sell and then raise their licencing costs. Effectively it's the same money because they own the company as long as all the owners agree to a sweetheart deal. Unfortunately for them they are having some issue deciding just how much everyone should discount there content to make Hulu look better. However, nobody got suckered into there 2 billion dollar shell game.