Well, we've been waiting to hear who would wind up purchasing the struggling Hulu, and now we know -- nobody! Instead the service will see an infusion of cash totaling $750 million from its current owners. Hulu has actively courted new owners on multiple occasions, and it seemed as if this time a deal was imminent. Both Yahoo and DirecTV were in the running allegedly but, for whatever reason, Fox, NBC and Disney found their offers lacking. It's unclear right now whether the issue was over asking price or future plans for the service, but the cabal behind Hulu will instead sink more money into the property to try and grow its subscriber base further. This is turning into something of a habit for the uneasy partnership, one that is quickly turning Hulu into the boy who cried wolf. The official press release awaits, after the break.
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21st Century Fox, NBCUniversal and The Walt Disney Company to Maintain Ownership Positions in Hulu
Companies Make Commitment to Recapitalize Hulu with $750 Million in New Funding to Propel Future Growth
NEW YORK & BURBANK, Calif.--(BUSINESS WIRE)--21st Century Fox, NBCUniversal and The Walt Disney Company today jointly announced that they will maintain their respective ownership positions in Hulu and together provide a cash infusion of $750 million in order to propel future growth.
"Hulu has emerged as one of the most consumer friendly, technologically innovative viewing platforms in the digital era. As its evolution continues, Disney and its partners are committing resources to enable Hulu to achieve its maximum potential"
Launched in 2008, Hulu is now a leading aggregator of premium online television content from over 400 content partners, and has achieved more than 30 million monthly unique visitors.
"Hulu has emerged as one of the most consumer friendly, technologically innovative viewing platforms in the digital era. As its evolution continues, Disney and its partners are committing resources to enable Hulu to achieve its maximum potential," said Robert A. Iger, Chairman and CEO, The Walt Disney Company.
"We believe the best path forward for Hulu is a meaningful recapitalization that will further accelerate its growth under the current ownership structure," said Chase Carey, President and Chief Operating Officer of 21st Century Fox. "We had meaningful conversations with a number of potential partners and buyers, each with impressive plans and offers to match, but with 21st Century Fox and Disney fully aligned in our collective vision and goals for the business, we decided to continue to empower the Hulu team, in this fashion, to continue the incredible momentum they've built over the last few years."
Hulu launched its premium subscription service, Hulu Plus, in 2010, which has now surpassed four million subscribers after more than doubling in 2012. Hulu achieved record revenues of $690 million that same year.
About 21st Century Fox
21st Century Fox (NASDAQ: FOX, FOXA; ASX: FOX, FOXLV) is the world's premier portfolio of cable, broadcast, film, pay TV and satellite assets spanning six continents across the globe. Reaching nearly 1.5 billion subscribers in 100 local languages every day, 21st Century Fox is home to a global portfolio of cable and broadcasting networks and properties, including FOX, FX, FXX, FS1, Fox News Channel, Fox Business Network, Fox Sports, Fox Sports Network, National Geographic Channels, Fox Pan American Sports, MundoFox and STAR; film studio Twentieth Century Fox Film; and television production studios Twentieth Century Fox Television and Shine Group. The Company also provides premium content to millions of subscribers through its pay-television services in Europe and Asia, including Sky Deutschland, Sky Italia and its equity interests in BSkyB and Tata Sky.
NBCUniversal is one of the world's leading media and entertainment companies in the development, production, and marketing of entertainment, news, and information to a global audience. NBCUniversal owns and operates a valuable portfolio of news and entertainment television networks, a premier motion picture company, significant television production operations, a leading television stations group, world-renowned theme parks, and a suite of leading Internet-based businesses. NBCUniversal is a subsidiary of Comcast Corporation.
About The Walt Disney Company
The Walt Disney Company (NYSE: DIS), together with its subsidiaries and affiliates, is a leading diversified international entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media. Disney is a Dow 30 company and had annual revenues of $42.3 billion in its Fiscal Year 2012. Disney has a market capitalization approaching $120 billion.