Andre Yoskowitz
17 Sep 2011 21:07
According to sources close to the process, Hulu's auction to sell it off could be in serious jeopardy.
There are complications over digital rights, say the sources, as well as a huge bid-ask gap between bidders and Hulu.
Furthermore, Yahoo in the midst of firing its CEO and restructuring, is likely out of the running for the time being. They were a top choice for the auction.
During his company's Q3 earnings last month, News Corp (one of the studios behind Hulu) even acknowledged that the sale may not even happen this year, says Reuters.
There is a new round of bids upcoming this week, and will be the catalyst as to whether the auction moved forward at all.
Current bids have ranged from $500 million to $2 billion coming from giants like DirecTV, Google, Amazon, Yahoo and DISH. All bids, so far, have had complications, either in price or licensing agreements. The main issue at hand is how long exclusive rights will be given to the new owner. Hulu has stayed steadfast on 2 years, while the bidders want 3-5.