Chernin the ex- News Corp (NASDAQ:NWSA) COO aiming for Hulu – CMCSA, P
Northern, WI 04/08/2013 (gdpwatch) – The former Chief Operating Officer of News Corp (NASDAQ:NWSA) (Current: $30.64, Up by 0.76%) offered an amount of $500 million for the online television service Hulu. He had helped in founding it. It was just last week that the bid was submitted by Chernin said some people in the know but who remained anonymous as the talks are still said to be private. This price is exclusive of the #330 million debt that Hulu has. The amount would go higher if the contract terms are hiked or if additional content rights are set.
Indecision over deal
Hulu is owned by Rupert Murdoch’s News Corp (NASDAQ:NWSA) (Current: $30.64, Up by 0.76%) and The Walt Disney Company (NYSE:DIS) (Current: $57.70, Down by 0.19%). They are still undecided about whether they should buy each other out of the company or whether Hulu should be sold to someone else. Chernin was No2 at Hulu which he was the co-founder of and the company provides subscription and free online video. He is now the owner of Chernin Group which is his own media company. His spokesperson as well as the Hulu spokesperson Elisa Schreiber declined any comment. The Burbank, California-based Disney and the News Corp which is based in New York own around 1/3sr of Hulu each and they also have management oversight rights in the company.
Comcast Corporation (NASDAQ:CMCSA) (Current: $41.56, down by 1.33%), who is the co-owner has been barred by regulators from playing any active role in Hulu. This was subsequent to its acquisition of NBC Universal in 2011. Close to a year ago, Hulu had paid $200 million towards repurchasing a stake of 10 percent from Providence Equity Partners Inc. They had originally invested $100 million in starting up the venture. In October 2011 the Hulu owners had cancelled the website sale when the bids did not meet the asking price of $2 billion. Last year the company had generated revenue of $700 million. Hulu is now on the lookout for a Chief Executive Officer to take the place of Jason Kilar who left Hulu last month. At the moment, the acting CEO is Andy Forssell.
Chernin had started the Chernin Group in 2009 after leaving News Corp and received an investment of $200 million in April, from Providence. He is also an investor in Pandora Media Inc (NYSE:P) (Current: $12.82, Down by 7.57%) and Twitter Inc and is a board member of both companies.