AT&T may link up with the Chernin Group to make a joint bid for Hulu, reports AllThingsD citing unnamed sources close to the telecommunications company. If the discussions go through, the partnership would give the Chernin Group a financial boost as it competes with six other bidders for the streaming video site. The other potential buyers are pay TV operators DirecTV and Time Warner Cable; private equity firms KKR, Guggenheim Digital and Silverlake Partners (along with talent agency William Morris Endeavor); and Yahoo.
Purchasing Hulu would add to AT&T’s roster of telecommunication services, which include U-verse TV. The Chernin Group, founded by former News Corp. COO Peter Chernin, made a $500 million bid for Hulu in April. As Ryan Lawler wrote, however, that offer seems relatively low, especially when compared to bids put forth for Hulu two years ago, when Google reportedly offered around $4 billion for the company plus extended streaming rights. The recent sale of Providence Equity Partners stake valued the company at around $2 billion.
Hulu is currently deciding which bids it wants to take seriously, but may decide not to sell if the bids do not come in at about $1 billion, AllThingsD reports. Hulu is currently owned by News Corp., Disney and Comcast.