Bloomberg says:
Hulu LLC’s owners may reconsider an initial public offering of the online video-streaming website after deciding to cancel an auction.
A share sale would let Hulu, owned by News Corp., Walt Disney Co. (DIS) and Providence Equity Partners, raise capital to add content and help retain senior management, said Laura Martin, a Needham & Co. analyst in Pasadena, California.
Cash from an IPO would help Hulu compete with Netflix Inc. (NFLX) and Amazon.com Inc. (AMZN) for programming, Martin said. The service dropped plans for an IPO last year that envisioned a $2 billion value. By keeping Hulu, the media companies retain control over how shows are distributed online and can use the service to steer viewers to their networks, Fox, NBC and ABC.
