WSJ: Google, Amazon, And Yahoo Fight For Hulu

The Wall Street Journal reported today that opening bids for Hulu are due Wednesday.  According to the WSJ, Google, Yahoo, and Amazon are top contenders for the streaming service. Projected bids are estimated to run between $500 million and $2 billion. Hulu was started in 2007 by NBCUniversal, ABC, and Fox as an online portal to stream their content. The consortium soon found that they opened a pandora’s box. Hulu offers free or low cost access to TV shows and movies. So as this began to threaten cable and broadcast profits, Hulu partners decided it was time to sell. Back in June Les Moonves, CBS CEO, all but predicted the sell off when he said that two of Hulu’s partners were ready to dump the service. Moonves went on to say that Hulu “gives away the family jewels for free.”

Broadcasters are taking Moonves seriously and limiting free access to online shows. Fox has delayed online access to TV shows 8 days after the original air date. Disney/ABC has similar plans. But the WSJ reports that “Some bidders say the pullback will hurt viewership, thereby reducing how much they would be willing to pay for the site.” The Hulu sale may take several months to complete.