Hulu Sale Called Off

NEW YORK/BURBANK: 21st Century Fox, NBCUniversal and The Walt Disney Company have taken Hulu off the auction block, announcing plans to invest $750 million to expand the online video service.

Chernin Group and DIRECTV had been among the potential suitors of Hulu. On Friday, the current owners announced their intention to retain their positions in the venture, which delivers programming from more than 400 partners, including next-day access to prime-time current-season shows on ABC, FOX and NBC, among other networks.

“Hulu has emerged as one of the most consumer friendly, technologically innovative viewing platforms in the digital era," said Robert A. Iger, the chairman and CEO of The Walt Disney Company. "As its evolution continues, Disney and its partners are committing resources to enable Hulu to achieve its maximum potential.”

Chase Carey, the president and COO of 21st Century Fox, added, “We believe the best path forward for Hulu is a meaningful recapitalization that will further accelerate its growth under the current ownership structure. 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.”

The company’s revenues in 2012 were $690 million; it receives ad revenues as well as monthly subscription fees for its Hulu Plus premium service.