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Billion Dollar Bids Made for Hulu

There’s a bidding war going on. According to Bloomberg, DirecTV (NASDAQ: DTV) has made a $1 billion offer to purchase video on demand website Hulu. And it’s not the only one. According to the report, at least two other unnamed companies have made billion dollar bids for the company jointly owned by News Corp. (NASDAQ: NWSA), Disney (NYSE: DIS), and Comcast. (NYSE: CMCSA)

These offers are three of at least seven buyout offers the company is weighing. According to sources not authorized to speak publicly, Hulu’s board plans to narrow the field in the next three to four weeks.

What’s so attractive about Hulu? First, it’s 20 million subscribers. For a company like DirecTV, that would represent a lot of new eyes that could take advantage of a lower cost offering that makes the company’s higher-cost premium service more attractive.

Other bidders outside of the three, $1 billion bidders include private equity firm, KKR & Co. (NYSE: KKR), Time Warner Cable (NYSE: TWC), and Silver Lake Management.

Hulu has become popular with younger viewers who prefer to watch content on their laptop or mobile device instead of traditional broadcast TV. Users can subscribe to the free service or upgrade to the premium paid model that provides more options. Popular shows like Family Guy, The Voice, Law & Order: SVU, and Hell’s Kitchen are available soon after they air.

Disclosure: At the time of this writing, Tim Parker had no position in any of the equities mentioned.

[stock-tools exchange="NASDAQ" symbol="DTV" image_height="180" image_width="300"]

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