Wednesday, August 24, 2011

Another Billion dollar deal - Hulu, the video website for sale

After the acquisition of  $12.5 billion dollar Motorola by Google , we are going to hear another billion dollar deal on Hulu, the video website . Some reports rumored that a Seattle based company is targeting Hulu ,which main source of income form advertisement and subscription on online access to television shows. Some other who are in expected to bid are , Google , Yahoo and Direct TV . 

The initial bids are due on Wednesday. If Amazon won this deal , it will be one of the major competetior for Netflix which rules US video-streaming service, who has more than 20 million U.S. subscribers and 20,000-plus titles. Is approximately worth of $1.5 Billion for Hulu , says Hulu's owners ,Walt Disney, News Corp., Comcast's NBCUniversal and private-equity firm Providence Equity Partner. Mean while Amazon is on the verge of developing its own touch screen tablet to compete with Apples iPad. Even though all the rumour spread, Amazon's Mary Osako as well as Hulu's Elisa Schreiber declined to comment with usual corporate comment as " not publicly discussing rumors or speculation".August second week Amazon launched its new product of  pay-as-you-go Instant Video service what has more than 100,000 titles available for rent or purchase ,as well as number of TV shows available for Free.

Now what will happen Google make the winning bid for Hulu ? We cant neglect that option , eventhough Google owns Youtube, the video-sharing website. Even though Google announsed the purachace of Motorola for $12.5 billion , it still has enough cash for business. As per the report it has $39.1 billion as of June 30,2011 , while Amazon has $6.3 billion cash on hand. 

Hulu is expecting to exceed 1 million subscribers by the end of summer, recently it added more subscribers on its $7.99-a-month Hulu Plus program. Out of 3.6 billion ads shown every month , the Hulus share is about 1/5, thats approximately 780 million.