Hulu Calls Off Talks to Sell Stake to Time Warner Cable

by William White | July 25, 2013 9:59 am

hulu 630 300x300 Hulu Calls Off Talks to Sell Stake to Time Warner Cable[1]Walt Disney (DIS[2]), 21st Century Fox (FOXA[3]) and NBC owner Comcast (CMCSA[4]) halted negotiations[5] with Time Warner Cable (TWC[6]) for the sale of video streaming service, Hulu.

While talks may resume, currently there aren’t any planned. Hulu owners announced the decision to end the auction on July 12. The owners will instead put $750 million in new capital towards the streaming service, reports Reuters.

Peter Chernin, DirecTV (DTV[7]) and AT&T (ATT.CL[8]) all put in bids of over $1 billion on the video streaming service, but were unsuccessful. Time Warner Cable had offered to purchase a 25% stake in Hulu, reports Reuters.

Company executives claim that low prices are not the reason[9] for the end of the auction, but instead insist that it was because they wanted to push forward with the service.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/10/hulu-630.jpg
  2. DIS: http://studio-5.financialcontent.com/investplace/quote?Symbol=DIS
  3. FOXA: http://studio-5.financialcontent.com/investplace/quote?Symbol=FOXA
  4. CMCSA: http://studio-5.financialcontent.com/investplace/quote?Symbol=CMCSA
  5. halted negotiations: http://www.reuters.com/article/2013/07/24/us-hulu-timewarnercable-idUSBRE96N18Q20130724
  6. TWC: http://studio-5.financialcontent.com/investplace/quote?Symbol=TWC
  7. DTV: http://studio-5.financialcontent.com/investplace/quote?Symbol=DTV
  8. ATT.CL: http://studio-5.financialcontent.com/investplace/quote?Symbol=ATT.CL
  9. low prices are not the reason: http://variety.com/2013/biz/news/no-hulu-stake-for-time-warner-cable-for-now-1200567815/

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