The owners of Hulu have extended the second round deadline for bidding on the video site by a week, Claire Atkinson at The New York Post reports.
She says the deadline was extended to allow DirectTV more time to line up financing for its bid, which is expected to come in around $1 billion.
Hulu has been in play for the past couple of months. Hulu is currently owned by Disney, News Corp., and Comcast through NBC.
Initially, there was a long list of suitors, but it’s been whittled down to three groups: DirectTV, Guggenheim Digital, which is led by ex-Yahoo CEO Ross Levinsohn, and Peter Chernin’s group in partnership with AT&T.
That means that Yahoo has dropped out of bidding. It was initially offering $600-$800 million, which was a shock since it just spent over a billion to grab Tumblr.
Atkinson also reports that bidders looking at terms of Hulu’s contracts discovered that some shows prevent Hulu from running episodes until a month after they’ve been on TV.
This is a big part of the reason Hulu’s only valued at $1 billion.
The thing that makes Hulu valuable is its content. And no one is really sure how much of that content Hulu gets to keep when it’s transferred to a new owner.
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