News Corp. and Disney allegedly in talks over the future of Hulu

Brittany A. Roston - Mar 1, 2013, 10:12pm CST
News Corp. and Disney allegedly in talks over the future of Hulu

According to sources, News Corp. and Disney are in talks about one of the companies possibly buying out the other to take control of Hulu, with NBC remaining the minority in the matter. Both Disney and News Corp. own about a third of Hulu each, and both are said to differ on how they feel the company should be monetized. Says the sources, these talks are in the beginning stages.

Per the two individuals who provided the information and are said to have knowledge about what is going on, News Corp. is of the opinion that Hulu should be primarily monetized via subscriptions, which is a current option with Hulu Plus ($8 per month). Disney, on the other hand, thinks Hulu should instead be dependent on an ad-based business model.

As part of the talks, both Disney and News Corp. will look into making changes to Hulu’s business model, or into possibly selling the service. Although they are in talks, says the sources, no deal is guaranteed and nothing may come of the alleged talks. Neither corporation has had anything official to say on the matter.

Hulu has grown since its humble beginnings, having been formed by Fox and NBC, which is now the minority holder. The service has grown, with the company reporting late last year that revenue had climed to $695 million, and that the number of subscribers was up substantially to 3 million. These rumors follow the upcoming leave of Hulu’s CEO Jason Kilar, who is set to step down at the end of the month.

[via Bloomberg]

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