×
You will be redirected back to your article in seconds

Yahoo Unlikely to Stay in Hulu Bidding (Exclusive)

Deadline for second round of bidding pushed until the end of next week

When the short list of bidders for Hulu emerges next week, Yahoo is not expected to be among them.

Yahoo’s initial bid for Hulu has been 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.

A spokeswoman for Yahoo declined to comment.

Potential suitors for Hulu originally had until the end of this week to place their bids, but the deadline has been extended until the end of next week, according to one insider. Initial bids have already come in from Guggenheim, DirecTV, Silver Lake with WME, Time Warner Cable, KKR & Co.,  and the Chernin Group with AT&T.

Previous reports on Yahoo’s bid for Hulu have pegged it in the $600 million to $800 million range.

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. But Hulu’s value is largely derived from its content deals with all three companies, and the duration of the licensing agreements could be the ultimate determinant of its price.

Some sources close to the talks say that new owners would get at least two to three years of content through such licensing agreements. That gives a substantial runway for bidders to create original content that could sustain the company once those agreements expire.

Popular on Variety

Hulu insiders are eager to see the sales process resolved ASAP as they are worried about more execs and other employees jumping ship. Senior VP of marketing and distribution Pete Distad will leave Hulu at the end of the summer.

Yahoo recently demonstrated its ability to pull the trigger on big acquisitions, with a $1.1 billion buy of Tumblr.

Yahoo wouldn’t be the first to fall out of the Hulu race; Amazon initially expressed interest but didn’t stick around to bid.

More Digital

  • PewDiePie aka Felix KjellbergFelix Kjellberg 'This

    PewDiePie Announces He's Taking a Break From YouTube in 2020

    The gamer behind YouTube’s most-watched channel, PewDiePie (real name Felix Kjellberg), announced in his latest Pew News video, posted Saturday, that he is planning to take a break from the platform next year. Towards the end of the video, which slams YouTube for its inability to effectively enforce its latest policy updates, Kjellberg says, “I [...]

  • Cenk Uygur

    Bernie Sanders Retracts Endorsement of Young Turks Founder Cenk Uygur After Backlash

    Bernie Sanders pulled his support for Cenk Uygur’s congressional bid, with the Vermont independent in part acknowledging that Sanders’ supporters were “frustrated” about the endorsement. Sanders, who’s running for the 2020 Democratic presidential nomination, cited Uygur’s announcement Friday that he would not be accepting any endorsements. In a statement, Sanders alluded to sexist and other [...]

  • Tana MongeauStreamy Awards, Arrivals, The Beverly

    Streamy Awards 2019: The Complete Winners List

    The 9th Annual Streamy Awards — honoring the best from YouTube and online video — were held Friday night in Beverly Hills. Tana Mongeau (pictured above) was named Creator of the Year and Rhett & Link’s “Good Mythical Morning” won Show of the Year in the two fan-voted Audience Choice categories. David Dobrik picked up [...]

  • NBC News - Quibi

    NBC News Digital Workers Form New Union

    A group of approximately 150 editorial workers who help produce some of NBC News digital content have formed a union, citing a desire to push their employer to work more seriously through such issues as equal pay and the recent handling of sensitive stories. Editorial employees of NBC News Digital won certification of their union [...]

  • Fox Nation Tests Holiday Programming

    Fox Nation Tests Holiday Programming

    The Fox Nation streaming-video service has long been touted as a new option for super-fans of the Fox News Channel. But some of the broadband hub’s new programming choices suggest adherents of “Fox & Friends” and Sean Hannity aren’t looking solely for chatter about politics and interviews with members of the Trump administration. Subscribers to [...]

  • Facebook

    FTC May Stop Facebook From Integrating Whatsapp, Instagram

    The Federal Trade Commission (FTC) is weighing whether it should seek an injunction against Facebook to prevent the social media giant from integrating services like Whatsapp, Messenger and Instagram with its core app, according to reports from the Wall Street Journal and the New York Times. Regulators fear that Facebook’s app integration plans could make [...]

More From Our Brands

Access exclusive content