Hulu LLC, an online video service, received US$1 billion worth of offer each from AT&T Inc. in a partnership with Chernin Group and DirecTV. The information came from sources familiar with the matter.
Time Warner Cable Inc.'s proposal for Hulu remained to be an alternative for the company's board of directors. Time Warner offered to purchase a stake in the website. The Hulu's board was handling the auction.
Yesterday, Guggenheim Digital and private equity firm KKR & Co.'s joint bid for Hulu was eliminated from the options.
Pay-television providers were competing for Hulu because it signified an inexpensive option compared to video subscriptions on cable and satellite networks.
Hulu was owned by 21st Century Fox Inc., Comcast Corp. and Walt Disney Co. The website provided a limited free variety of its services on personal computers. It also sold an US$8-per-month subscription. This involved an access to more productions in different kinds of gadgets.
The owners of Hulu were seeking a buyer that would spend on programs for the upstart Web-video site.
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