Now that Google is buying Motorola for $12.5 billion, here’s a likely side effect: It’s much less likely Larry Page and co. will buy Hulu, notes Peter Kafka at All Things D.
Google certainly has enough cash to purchase the company — and there are plenty of rumours it was interested.
But the Motorola acquisition raises significant obstacles:
- Google’s M&A team is going to be focused on digesting Motorola. Will it want to focus on another big company?
- Google is already in hot water in D.C. Does it want to bring more attention to itself by purchasing another video site?
- Google would have to give Hulu a big breakup fee. As Peter Kafka notes, even if it did pursue Hulu, the company’s investors would likely want to go with a safer bet.
The Google-Motorola deal already has huge potential for disaster. Does it want to roll the dice on another potential disaster? We don’t think so.