The LA Times is reporting that Google is in preliminary talks to buy the video service Hulu, and other big suitors are in play, too. “Hulu has begun meeting with potential buyers including Google, Microsoft Corp. and Yahoo Inc. to drum up interest in a sale,” the LA Times reports. It all began when Yahoo reached out to Hulu to gauge interest in a possible sale.
Out of the bunch, Google has the most to gain from an acquisition. It’s first foray with Google TV not only stalled, but hit a wall when top programmers (and Hulu.com) blocked the TV browser from streaming their shows. YouTube has tried repeatedly to land high-value content, but outside of a few scattered successes, has fallen short. In response, YouTube has ramped up efforts to attract new talent.
Yahoo is also working hard to secure content, and Microsoft just added Hulu to Xbox.
For Hulu’s joint venture partners, selling the service after renewing two of its top programming sources — Walt Disney and News Corp. — would allow them to “make a graceful exit from a service whose success nonetheless created friction with traditional business partners,” reports the Times. Hulu’s growing success as been a point of tension with cable and satellite distributors.
Of course, today’s leak to the LA Times is standard operating procedure when an attractive company is shopped around. Until the deal’s done, anything can happen.
