Updated: Tuesday July 5, 2011 MYT 9:58:45 AM
Google among firms looking to buy Hulu
STRATEGIC BUY: A scene from The Booth at the End, which will be shown exclusively in the US on Hulu.com and the Hulu Plus. Google is reportedly interested in buying Hulu. - Hulu and VuguruLOS ANGELES: Search giant Google Inc is one of about a dozen companies involved in talks to potentially buy online video site Hulu.
As the owner of YouTube, it would be a strategic buy for the Silicon Valley technology company, which has had a rocky relationship with Hulu's Hollywood owners.
Hulu has begun presenting its financial information to many prospective bidders, but it's too early to declare a front-runner, said a person who spoke on condition of anonymity because the discussions are confidential.
The online video service began seeking bidders early last week after an unsolicited offer prompted Hulu's board to look for other interested parties.
Hulu streams movies and TV shows from broadcasters ABC, Fox and NBC to personal computers and, for a monthly fee, to a range of Internet-connected devices.
The company is owned by the broadcasters' parents, The Walt Disney Co, News Corp, and Comcast Corp, along with Providence Equity Partners.
In February, Hulu CEO Jason Kilar said Hulu will have one million paying customers by the end of the year and generate nearly US$500mil (RM1.5bil) in revenue, up from US$263mil (RM789mil) in 2010. He has said the company is profitable.
No guarantee
Google's own attempt last year at launching a service that streamed web content onto television sets, Google TV, was met with a blockade by broadcasters that continues to this day.
People using personal computers can see recent shows on Hulu for free with ads, but those trying to access them through Google TV aren't able to.
Hulu does not allow viewers to watch its shows on mobile devices or through TV sets unless users subscribe to Hulu Plus, a US$8-a-month (RM24-a-month) plan that offers access to a broader catalogue of material.
Even if Google were to buy Hulu, the right to continue to stream content from its current owners isn't guaranteed. The broadcasters insist Mountain View, California-based Google must reach a new agreement to license the content to be used in that way.
Google's YouTube also rents movies from studios such as Sony, Warner Bros, Universal and Lionsgate but not from Disney, Paramount and 20th Century Fox.
Paramount owner Viacom Inc is appealing a lower court's rejection of its US$1bil (RM3bil) lawsuit in which it accuses YouTube of showing tens of thousands of pirated video clips from its shows.
Google's interest in Hulu was earlier reported by the Los Angeles Times.
A Google spokesman said the company doesn't comment on rumour and speculation. A Hulu spokesman also declined to comment. - AP
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