×

Silver Lake, WME to Bow Out as Bidders for Hulu

Deadline for Hulu to accepts bids from buyers ends today

Silver Lake Partners and talent agency WME are no longer in the running to buy Hulu, as the deadline to accept bids for the company ends today.

The companies opted not to sweeten their initial offer and make a second bid for the Internet TV streaming service, according to a report by AllThingsD, citing unnamed sources. The amount of the first bid was not disclosed.

The field of bidders for Hulu still remained in flux, as of Friday morning, with DirecTV, Time Warner Cable, Guggenheim Partners, private-equity firm KKR & Co., in the running, along with AT&T, which has been in discussions with Chernin Group, led by former News Corp. COO Peter Chernin, to enter a joint proposal. DirecTV is still considered a favorite.

WME paired up with Silver Lake, its private-equity backer, on a bid to acquire Hulu in May. Silver Lake, which is focused on Silicon Valley startups, bought a 31% stake in the agency last year.

Yahoo is also unlikely to remain a final bidder, with its initial bid for Hulu described as low, according to one individual with knowledge of the negotiations. That individual and others have described Yahoo’s interest in the streaming site as having waned in recent weeks. Previous reports on Yahoo’s bid for Hulu have pegged it in the $600 million to $800 million range.

SEE ALSO: Yahoo Unlikely to Stay in Hulu Bidding

News Corp., Disney and Comcast put Hulu on the block in April, and the trio is said to be seeking in the neighborhood of $1 billion for the company.

Bids are said to have ranged from $500 million to $1 billion, according to sources familiar with the situation, far less than the $2 billion Hulu’s owners reportedly sought in 2011.

SEE ALSO: Here’s Who Should Own Hulu

Two of Hulu’s owners — Walt Disney Co. and News Corp. — are seeking to exit the business, which they see as strategically misaligned with their own interests. According to sources close to Hulu, News Corp. and Disney are hoping to reach an agreement on the sale process within the next eight weeks.

The third owner, Comcast’s NBCUniversal, is prohibited from exercising any management decisions regarding Hulu under the government’s conditions for the cable company’s takeover of NBCU.

(Todd Spangler and Rachel Abrams contributed to this report).

More Biz

  • After Yet Another Rejection, What Could

    After Yet Another Rejection, What Could Be Next for Woodstock 50?

    In the wake of the Town of Vernon’s third rejection of Woodstock 50’s permit application to hold its music festival at a venue in the Upstate New York municipality, one may well wonder what the troubled event’s next move might be. In the hours after the latest rejection was announced, even the optimistic-bordering-on-unrealistic producers sounded [...]

  • US actor Kevin Spacey (C) is

    Kevin Spacey Sexual Assault Case Dropped in Nantucket

    Nantucket prosecutors have dropped a sexual assault case against actor Kevin Spacey, citing the “unavailability” of the complaining witness. Spacey had been accused of groping an 18-year-old busboy at the Club Car restaurant in July 2016. He was charged with indecent sexual assault, and a trial was set to be held in the fall. However, [...]

  • Plume of black smoke rising from

    Universal Music Updates Staff on Fire Damage in Internal Memo (Read)

    Ahead of an expected motion to dismiss the lawsuit filed last month by several artists over damage in the 2008 fire that destroyed hundreds of thousands of master recordings, according to the New York Times, the company’s chief archivist, Pat Kraus, issued a memo to the staff that has been obtained by Variety. While the [...]

  • CAA Signs Jay Shetty

    CAA Signs Jay Shetty

    CAA has signed award-winning host, storyteller, and viral content creator Jay Shetty for representation. Shetty’s videos have been viewed more than 4.5 billion times and he’s amassed more than 30 million followers across social media, becoming Facebook’s No. 1 creator on the platform with 24 million followers. After graduating university in the U.K., Shetty moved [...]

  • gordon-ramsay-masterclass-review

    Gordon Ramsay and Studio Ramsay Return to WME for Representation

    Superstar TV chef Gordon Ramsay has returned to WME for representation after eight years with CAA. WME will represent Ramsay and his production company, Studio Ramsay, in all areas. Ramsay is one of the most recognizable names in the culinary world after establishing himself as a TV star in the U.K. and U.S. Studio Ramsay [...]

  • Jim Gosnell

    APA Seeks to Move Assistant's Harassment Suit to Arbitration

    APA filed a motion Tuesday seeking to force an ex-assistant to arbitrate her claims of sexual harassment and verbal abuse. The motion, filed in L.A. Superior Court, accuses the former assistant of fabricating texts and emails in order to accuse the agency of fostering a “toxic, pervasive and sexually abusive environment.” The assistant, known in [...]

More From Our Brands

Access exclusive content