Hulu announced on Friday that 21st Century Fox, NBCUniversal and The Walt Disney Company will maintain ownership of the company. The video streaming service was considering a sale and had received bids from DirecTV, Time Warner Cable and Yahoo, among others. The firm’s three owners now plan to double down on Hulu and collectively invest an additional $750 million in an effort to “propel future growth.” Hulu provides content from more than 400 partners to over 30 million monthly visitors. The company also offers a premium subscription service, known as Hulu Plus, that currently counts more than four million subscribers, but it continues to struggle against competing services offered by Netflix and Amazon. Hulu’s press release follows below.
21st Century Fox, NBCUniversal and The Walt Disney Company to Maintain Ownership Positions in Hulu
Companies Make Commitment to Recapitalize Hulu with $750 Million in New Funding to Propel Future Growth
NEW YORK & BURBANK, Calif.–(BUSINESS WIRE)–21st Century Fox, NBCUniversal and The Walt Disney Company today jointly announced that they will maintain their respective ownership positions in Hulu and together provide a cash infusion of $750 million in order to propel future growth.
Launched in 2008, Hulu is now a leading aggregator of premium online television content from over 400 content partners, and has achieved more than 30 million monthly unique visitors.
“Hulu has emerged as one of the most consumer friendly, technologically innovative viewing platforms in the digital era. As its evolution continues, Disney and its partners are committing resources to enable Hulu to achieve its maximum potential,” said Robert A. Iger, Chairman and CEO, The Walt Disney Company.
“We believe the best path forward for Hulu is a meaningful recapitalization that will further accelerate its growth under the current ownership structure,” said Chase Carey, President and Chief Operating Officer of 21st Century Fox. “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.”
Hulu launched its premium subscription service, Hulu Plus, in 2010, which has now surpassed four million subscribers after more than doubling in 2012. Hulu achieved record revenues of $690 million that same year.