Online video streaming website Hulu.com will no longer be up for sale, company executives have confirmed. The streaming video service, which was launched by NBCUniversal, 21st Century Fox, and The Walt Disney Company in 2007, is now a major Internet property, attracting tens of millions of monthly visitors.
The streaming service allows users to stream content from several film studios for free, often in exchange for advertisements. Annual revenue for Hulu has increased substantially over the service’s lifetime, with the website earning over $690 million from advertising fees and subscriptions in the last twelve months.
The company, which is part owned by the three studios, was previously shopping around for a buyer. With over 30 million unique users and 4 million paid users, it’s no small property in Internet terms. Before the service was pulled from the market, it had reportedly received several ‘compelling offers.’
After reviewing Hulu’s long-term value, the founders have pulled the service from the public market, instead opting to invest $750 million in capital into growing the website into a larger Internet service. Hulu’s major rivals include popular streaming service NetFlix, which recently branched out into offering its own original content.
Other competitors include Amazon.com, which has launched its own television and movie streaming services. Hulu’s service is relatively similar, although the website is free for PC users. Paid users receive access to Hulu’s network of content on a larger selection of devices, such as tablet computers and home digital video systems.
Bidders included DirecTV, a large US satellite television service, and AT&T. Both of the companies offered approximately $1 billion for Hulu, Hulu’s owners had voiced the idea of floating the company on the stock market in 2011 at a $2 billion value, but once again made the decision to leave the company in private hands.
