In a move that literally no one should be shocked about, Hulu's ownership group, Comcast, Disney and News Corp., have once again decided to take the company off the market and, instead, spend money to make it successful.
While the news is definitely a let down for potential buyers, it is something totally expected by everyone else. This is, after all, not the first time Hulu has been for sale and suddenly revoked. The last time was because Disney was not happy with any of the offers, this time it appears Disney and News Corp. together weren't happy with the offers.
Chase Carey, president of News Corp. division 21st Century Fox, said,
We had meaningful conversations with a number of potential partners and buyers, each with impressive plans and offers to match, but with 21st Century Fox and Disney fully aligned in our collective vision and goals for the business, we decided to continue to empower the Hulu team, in this fashion, to continue the incredible momentum they've built over the last few years.
Let's all hope that this claimed commitment to improvement is legitimate. The three current owners have committed to adding a total of $750 million, planned for expansion, marketing and programming. One good use of some of the cash would be original programming. Amazon has committed to 5 new shows, and Netflix seems to be launching new series regularly, some even featuring big named actors.
Both have gotten new membership due to the original programming, but both have properly marketed the programming options. Hulu has had original programming, but has failed to market to non-members. With an injection of cash, Hulu could improve its offerings and market their benefits to non-members.
The decision to cancel the sale, however, does not mean that ownership changes are not possible. Time Warner was interested in purchasing a stake, as opposed to the company, and those talks may not have ended. A fourth owner, as a content producer, not investor, is something that could help the overall company, as well. Added content and home-spun marketing, plus the potential of bundled-pricing for subscribers, could certainly improve the outlook.