A source close to one of Hulu’s parent companies tells us Hulu management – and Hulu investor Providence Equity Partners – will soon get a chance to get at least some of the liquidity an outright sale would have provided.A week ago, Hulu CEO Jason Kilar and his top equity-holding managers were looking at a huge payday after all their hard work. DISH Network had just offered about $2 billion to buy the company.
But then, suddenly, that pay day suddenly evaporated. Executives at Hulu’s parent companies, Disney and News Corp in particular, had decided not sell the Web TV startup after all.
Last night, the news was made official when Hulu put out a press release announcing that the sales process a was over.
It had to be a disappointing moment for Kilar and his crew.
But lament not, Hulu-builders!
Our source tells us News Corp and Disney executives know Kilar and his team (and Providence Equity Partners) were about to cash in on a huge pay day. To keep the team motivated, News Corp and Disney are likely to start buying out portions of equity.
Says this source: “We’ve created expectations. Now we got to deal with it”