Apple is now planning to put forward a bid for the ‘now famous’ Hulu deal. Apple Inc. has a claimable bookish share of 76 billion which is in securities and cash. Apple can easily be considered as one in the most valuable companies all over the world and they are in with initial talks to enter the bidding process.
On one hand where Hulu would be happy if Apple buys them, on the other hand, Apple would even be happy to get this subscription service of Hulu. If this partnership is to strike the right chord, then it could post as a real challenge for Comcast Corp. (CMCSA)’s NBC Universal, News Corp. (NWSA), Walt Disney Co. (DIS) and Hulu’s media- company owners Netflix Inc. (NFLX) as there are even plans of offering an extension program rights for five years and exclusive rights for two years.
San Francisco based Wedbush Securities Inc. analyst, Scott Sutherland said that there is a porting pertaining to Apple’s ecosystem is for inclusion of many more videos in the future to come and that this would be something Apple has expressed their will to focus on. Yet another analyst from San Francisco, Brian Marshall, said that Hulu will definitely add a new incline to the collection of Apple and even looking at the subscription point of view, it would be really good for Apple.
The price tag of Hulu even is good enough and could be estimated at a bare 2 billion USD which was as per the data compilation noted by SNL Kagan and Bloomberg. The data even revealed that Apple has never been part of big acquisitions and its costliest purchase was way back in 1996 for NeXT Software Inc., which was for 400 million USD. But the spokespersons of both the companies declined to pass any comment for the said deal. Of late, however Apple has just ventured into buying the Nortel Network Corp for which it would be paying 2.6 billion USD. But that is not all, Apple are even with talks to bid for InterDigital Inc., which has a price tag for its patents and would be anywhere around 3.37 billion USD.
iTunes of Apple has a facility via which Apple passes on movies and TV shows on rent and the rent for the shows which are currently running is 99 cents while if one plans to rent in films in HD, then the rent would be 4.99 USD. Talking about Hulu episodes, one can get a few free on the list episodes which would have ads and would be limited. But accessing to the huge collection, which would be for Hulu Plus, one would have to pay 7.99 USD on a monthly basis.
Referring to the history of this deal, Microsoft recently pulled out of it and Yahoo who showed liking to bid, is estimated that it would pay a max of 2 billion USD but wants exclusive rights even for 4-5 years. Amazon would even enter the bidding as said after it gets a guarantee on the rights.