AT&T is currently in discussions with Chernin Group for a joint proposal to acquire Internet TV streaming service Hulu.com. The Chernin Group is led by former News Corporation chief operating officer Peter Chernin. This past April, we reported that the Chernin Group bid $500 million for Hulu. AT&T is competing against the likes of Yahoo!, KKR, Guggenheim Digital, DirecTV, and Silver Lake Partners.
Hulu’s parent companies Walt Disney Company and News Corporation have been seeking buyers for the company because they believe the service is misaligned from their own interests. Reportedly, News Corp and Disney want to find a buyer within the next 8 weeks. Hulu’s other parent company, Comcast NBCUniversal, is not able to exercise any management decisions due to government regulations.
One of the primary hang-ups for the acquisition is the terms of the content rights for News Corp. and Disney that prospective buyers are seeking. Hulu hosts many popular TV shows on the Internet including Parks and Recreation, The Office, The Daily Show With Jon Stewart, Saturday Night Live, MasterChef, Hell’s Kitchen, Family Guy, Law & Order, Grey’s Anatomy, Glee, and Psych.