Google Kicks Hulu’s Tires

Tech giant among those meeting with Hulu to explore a potential sale, L.A. Times reports

Add Google to the list of potential bidders for Hulu.

The video streaming service is in preliminary talks with the tech giant, according to the L.A. Times, which also reports that the company has been meeting with Microsoft and Yahoo to drum up interest in a sale.

Last week, Hulu engaged Morgan Stanley and Guggenheim Partners to explore a potential sale after receiving an unsolicited takeover overture. Yahoo has apparently expressed interest in making a bid.

Also Read: Who Will Buy Hulu? Most Likely an Internet Giant with Cash

The company, a joint venture between News Corporation, the Walt Disney Company, NBC Universal (now Comcast) and Providence Equity Partners, is ripe for acquisition. It had $25 million in 2008 revenues, and CEO Jason Kilar has said it is on pace to approach $500 million in sales by the end of 2011.

The move also comes as streaming becomes the red-hot focus for content companies eager to exploit new revenue streams in the post-DVD age.

Also Read: The Problem for MySpace, Hulu, Facebook: How to Sustain Value?

But there is tension between Kilar and co-owners News Corp. and Disney. The content giants fear that growing streaming deals will cannibalize the billions made from their cable assets and other ancillary distribution arms.